Gift with purchase profit calculator
Result
The gift costs $4.45 per order. To earn the same per visitor, it has to bring 40.8% more buyers.
Without gift
Revenue $40.00 to contribution margin $15.36 (38.4%)
Revenue
$40.00
Cost of goods
−$12.00
Pick and pack
−$1.18
Packaging
−$0.50
Shipping label
−$7.50
Card fee per order
−$0.30
Refunds
−$2.00
Card processing
−$1.16
Contribution margin
$15.36
2 declared kinds cost nothing on this option
| Step | Grain | Amount |
|---|---|---|
| Revenue | – | $40.00 |
| Cost of goods | per unit | −$12.00 |
| Pick and pack | per order | −$1.18 |
| Packaging | per parcel | −$0.50 |
| Shipping label | per parcel | −$7.50 |
| Card fee per order | per order | −$0.30 |
| Refunds | percent | −$2.00 |
| Card processing | percent | −$1.16 |
| Contribution margin | – | $15.36 |
| 2 kinds costing nothing | – | $0.00 |
With gift
Revenue $40.00 to contribution margin $10.91 (27.3%)
Revenue
$40.00
Cost of goods
−$16.00
Pick and pack
−$1.18
Extra picks
−$0.20
Packaging
−$0.50
Shipping label
−$7.50
Card fee per order
−$0.30
Gift fulfilment
−$0.25
Refunds
−$2.00
Card processing
−$1.16
Contribution margin
$10.91
| Step | Grain | Amount |
|---|---|---|
| Revenue | – | $40.00 |
| Cost of goods | per unit | −$16.00 |
| Pick and pack | per order | −$1.18 |
| Extra picks | per unit | −$0.20 |
| Packaging | per parcel | −$0.50 |
| Shipping label | per parcel | −$7.50 |
| Card fee per order | per order | −$0.30 |
| Gift fulfilment | per unit | −$0.25 |
| Refunds | percent | −$2.00 |
| Card processing | percent | −$1.16 |
| Contribution margin | – | $10.91 |
| Per order | Without gift | With gift |
|---|---|---|
| Revenue | $40.00 | $40.00 |
| Cost of goods | −$12.00 | −$16.00 |
| Pick and pack | −$1.18 | −$1.18 |
| Extra picks | $0.00 | −$0.20 |
| Packaging | −$0.50 | −$0.50 |
| Shipping label | −$7.50 | −$7.50 |
| Card fee per order | −$0.30 | −$0.30 |
| Gift fulfilment | $0.00 | −$0.25 |
| Refunds | −$2.00 | −$2.00 |
| Card processing | −$1.16 | −$1.16 |
| Contribution margin | $15.36 | $10.91 |
| Margin % | 38.4% | 27.3% |
- Profit per visitor without the gift
- $0.46
- With the gift, at the same conversion
- $0.33
- Conversion lift to break even
- +40.8%
The gift costs $4.45 an order. Lift to break even +40.8%