How it's calculated
- Bundle price = single price × units × (1 − bundle discount)
- Margin per order = price + shipping charged − unit cost × units − pick and pack − extra picks − packaging − label − card fees − refund reserve
- Subscribed price = price × (1 − subscribe-and-save discount), on the first order and every renewal
- Conversion the bundle can lose = single margin ÷ bundle margin − 1 (negative: it can lose that share of buyers)
Every figure on this page comes from the margin engine in Offer Suite's own code (packages/engine), the function that prices offers in the product. Money is computed in whole cents and rounded once per line.
Worked example
A bag sells at $40.00 plus $7.00 shipping. Three bags at 15% off make a $102.00 bundle that ships free. The single keeps $21.81 per order. The bundle keeps $48.06: it pays two extra picks but only one label, one box and one pick and pack.
On subscription at 10% off, the single keeps $18.12 per order and the bundle $38.67. Per visitor, the bundle earns as much as the single even if 54.6% fewer visitors buy it, one-time.
Assumptions
- The bundle ships in one parcel, so it pays one label, one box, one pick and pack, and one extra pick for each additional unit.
- The subscribe-and-save discount applies to the first order and every renewal alike; a deeper first-order discount is what the subscription calculator is for.
- The comparison is per visitor: it asks how many fewer visitors can buy the bundle than would buy the single for the two to earn the same.
- Pick and pack $1.18 per order and $0.20 for each extra item are the defaults of the engine's DTC-US profile, a typical third-party warehouse contract. Use your own contract.
- The shipping label ($7.50) is an assumption for a domestic ground parcel of about a pound. Your carrier account or shipping app has your rate.
- Card processing of 2.9% + $0.30 is a common online card rate. Shopify's rate depends on your plan and the card, and your admin shows yours.
- The refund reserve (5%) is a share of revenue set aside for refunds. Cost is not reduced by a refund, because the goods were already picked and shipped.
Questions
How do I price a bundle?
Start from what the bundle saves you: one label and one pick and pack instead of several. That saving is the most you can give away without earning less per unit than singles. The calculator shows the margin per order of each, one-time and subscribed, so you can see where the discount starts to cost you.
Should a bundle ship free?
Often, because the label is paid once whatever the units. Set shipping charged on the bundle to 0.00 and watch the margin: if the bundle still earns more per order than the single with shipping, free shipping is a cheap reason to buy it.
Does a bundle on subscription still make sense?
Each renewal ships the whole bundle, so it earns the bundle's margin every time at the subscribe-and-save price. The table shows the subscribed margin next to the one-time one.
How much conversion can a bundle lose?
Divide the single's margin by the bundle's and subtract one. If the answer is −40%, the bundle earns the same per visitor even when 40% fewer visitors buy it than would buy the single.