Subscription first order vs renewal calculator
Result
The first order earns $3.79 and each renewal $11.68. Over 12 orders a subscriber is expected to earn $58.90, against $15.36 from a one-time buyer, and passes it at order 3.
First order
Revenue $32.00 to contribution margin $3.79 (11.8%)
Revenue
$32.00
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
Refunds
−$1.60
Card processing
−$0.93
Contribution margin
$3.79
1 declared kind costs nothing on this option
| Step | Grain | Amount |
|---|---|---|
| Revenue | – | $32.00 |
| 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 |
| Refunds | percent | −$1.60 |
| Card processing | percent | −$0.93 |
| Contribution margin | – | $3.79 |
| 1 kind costing nothing | – | $0.00 |
Renewal
Revenue $36.00 to contribution margin $11.68 (32.4%)
Revenue
$36.00
Cost of goods
−$12.00
Pick and pack
−$1.18
Packaging
−$0.50
Shipping label
−$7.50
Card fee per order
−$0.30
Refunds
−$1.80
Card processing
−$1.04
Contribution margin
$11.68
2 declared kinds cost nothing on this option
| Step | Grain | Amount |
|---|---|---|
| Revenue | – | $36.00 |
| 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 | −$1.80 |
| Card processing | percent | −$1.04 |
| Contribution margin | – | $11.68 |
| 2 kinds costing nothing | – | $0.00 |
| Per order | First order | Renewal | One-time |
|---|---|---|---|
| Revenue | $32.00 | $36.00 | $40.00 |
| Cost of goods | −$16.00 | −$12.00 | −$12.00 |
| Pick and pack | −$1.18 | −$1.18 | −$1.18 |
| Extra picks | −$0.20 | $0.00 | $0.00 |
| Packaging | −$0.50 | −$0.50 | −$0.50 |
| Shipping label | −$7.50 | −$7.50 | −$7.50 |
| Card fee per order | −$0.30 | −$0.30 | −$0.30 |
| Refunds | −$1.60 | −$1.80 | −$2.00 |
| Card processing | −$0.93 | −$1.04 | −$1.16 |
| Contribution margin | $3.79 | $11.68 | $15.36 |
| Margin % | 11.8% | 32.4% | 38.4% |
| Order | Subscribers still active | Profit so far |
|---|---|---|
| 1 | 100.0% | $3.79 |
| 2 | 85.0% | $13.72 |
| 3 | 72.2% | $22.16 |
| 4 | 61.4% | $29.33 |
| 5 | 52.2% | $35.43 |
| 6 | 44.4% | $40.61 |
| 7 | 37.7% | $45.01 |
| 8 | 32.1% | $48.76 |
| 9 | 27.2% | $51.94 |
| 10 | 23.2% | $54.65 |
| 11 | 19.7% | $56.95 |
| 12 | 16.7% | $58.90 |
- Expected orders per subscriber
- 5.72
- Order where profit turns positive
- 1
- Order where it passes a one-time buyer
- 3
First order / renewal $3.79 / $11.68. Over 12 orders $58.90