--- title: "Bundle pricing for home goods brands" description: "Packs of one, two and three for home goods brands, priced by the margin engine on sourced costs: margin per order and the conversion each pack can lose." url: https://offersuite.io/playbooks/bundle-pricing-for-home-goods-brands updated: 2026-10-13 --- # Bundle pricing for home goods brands Packs of one, two and three for home goods brands, priced by the margin engine on sourced costs: margin per order and the conversion each pack can lose. ### Single Revenue $229.00 to contribution margin $23.19 (10.1%) Revenue $229.00 Cost of goods −$136.94 Pick and pack −$3.20 Shipping label −$14.53 Card fee per order −$0.30 Refunds −$44.20 Card processing −$6.64 Contribution margin $23.19 2 declared kinds cost nothing on this option ### Pack of 3, 15% off Revenue $583.95 to contribution margin $16.14 (2.8%) Revenue $583.95 Cost of goods −$410.82 Pick and pack −$3.20 Extra picks −$0.96 Shipping label −$22.90 Card fee per order −$0.30 Refunds −$112.70 Card processing −$16.93 Contribution margin $16.14 1 declared kind costs nothing on this option Each pack, shipped free, per order | Option | Customer pays | Shipping charged | Costs | Margin | Margin % | Conversion against the single | | --- | --- | --- | --- | --- | --- | --- | | Single | $229.00 | $0.00 | $205.81 | $23.19 | 10.1% | — | | Pack of 2, 10% off | $412.20 | $0.00 | $387.17 | $25.03 | 6.1% | can lose 7.4% | | Pack of 3, 15% off | $583.95 | $0.00 | $567.81 | $16.14 | 2.8% | +43.7% | Every figure is computed by the margin engine in Offer Suite's own code, in whole cents, from the costs below. ## What the numbers say A single pillow at $229.00, shipped free, keeps $23.19 after every cost (10.1%). The pack of two at 10% off keeps $25.03, and the pack of three at 15% off $16.14. An order pays one pick-and-pack fee and one fixed card fee whatever it holds, and the label grows slowly with weight: $14.53 for one unit, $22.90 for three. At this margin that saves less than the pack of three's discount gives away. The pack of three earns less per order than the single, so it needs more buyers than the single to earn as much per visitor. ## The cost structure, and where it comes from | | | | --- | --- | | Price | $229.00, a pillow. [Purple, Harmony Pillow, read 13 October 2026](https://purple.com/pillows/harmony) | | Unit cost | $136.94. From the income statement: revenue $468.7 million, gross profit $188.6 million, a gross margin of 40.2%. [Purple Innovation, annual report (Form 10-K) for the year ended 2025-12-31, read 13 October 2026](https://www.sec.gov/Archives/edgar/data/1643953/000121390026036974/ea0274767-10k_purple.htm) | | Pick and pack | $3.20 per order and $0.48 for each extra item. [Fulfill.com, 3PL pricing benchmarks (The Fulfillment Advisor 2025 survey of 600+ warehouses), read 23 September 2026](https://www.fulfill.com/3pl-pricing) | | Shipping label | USPS Ground Advantage, commercial, Zone 5, by weight rounded up to the pound: 1 lb $9.29 · 2 lb $10.50 · 3 lb $12.12 · 4 lb $13.89 · 5 lb $14.53. Packed weight is an assumption: 5 lb per unit. [USPS Notice 123, USPS Ground Advantage Commercial, Zone 5 (effective 4 October 2026), read 13 October 2026](https://pe.usps.com/text/dmm300/Notice123.htm) | | Card fees | 2.9% + $0.30 per order: Shopify Payments' online rate for a standard card on the Basic plan in the United States. Higher plans pay a lower rate, and premium cards a higher one. [Shopify's pricing page for the United States, online standard card rates, read 12 October 2026](https://www.shopify.com/pricing) [Rates by plan and country](https://offersuite.io/fees/shopify-payments/united-states) | | Refund reserve | 19.3%, NRF's estimate of online sales returned in 2025, across all categories. [NRF and Happy Returns, 2025 Retail Returns Landscape (15 October 2025), read 23 September 2026](https://nrf.com/media-center/press-releases/consumers-expected-to-return-nearly-850-billion-in-merchandise-in-2025) | | Gift | A pillowcase: unit cost $14.95, retail $25.00. A $25 pillowcase, costed at Purple Innovation's reported gross margin. | ## The offer, as an agent writes it An agent writes this offer as one document for Offer Suite's API, validated against the offer schema. Below is one option of it: what the buyer gets and the price it promises. Offer Suite checks with a real cart that checkout charges exactly the prices above. **Show one option 3 options · excerpt** ``` { "key": "pack-3", "display": { "title": "Pack of 3" }, "lines": [ { "role": "main", "quantity": 3, "purchase": { "type": "one_time" } } ], "pricing": { "promise": { "firstChargeCents": 58395, "renewalChargeCents": null } } } ``` How Offer Suite validates, versions and publishes a document like this one: [offer documents](https://offersuite.io/features/offer-documents). ## Questions ### Is bundle pricing profitable for home goods brands? On these costs a pack of three at 15% off keeps $16.14 per order (2.8%), against $23.19 for a single. The discount is paid by every buyer of the pack, including those who would have bought three at full price. ### How much conversion can a bundle lose for home goods brands and still pay? Against the single, per visitor: the pack of two can lose 7.4%, and the pack of three needs +43.7%. ## See what your own offers earn. Offer Suite opens to Shopify brands a few at a time. Join the waitlist, or ask for a free profit audit of your past orders: realized profit per item and per offer option, what each costs you, and where margin leaks. [Join the waitlist](https://offersuite.io/waitlist) [Request a free profit audit](https://offersuite.io/profit-audit) ## Related - [Playbooks **Offer playbooks by vertical** Bundles, subscriptions, samples, gifts, free shipping and quantity breaks for coffee, supplement, beauty, pet, apparel, fashion, footwear, jewelry, household, home goods and outdoor gear brands, on sourced costs.](https://offersuite.io/playbooks) - [Feature **Offer documents: one validated document per offer** An offer is one validated, versioned document your agent writes: tiers, bundles, subscriptions, gifts and prices, with no offer types to pick from.](https://offersuite.io/features/offer-documents) - [Calculator **Bundle pricing calculator: shipping, subscriptions** Price a bundle against a single unit, one-time and subscribed, with the shipping and pick costs it saves, and the conversion it can lose and still earn as much.](https://offersuite.io/calculators/bundle-pricing) - [Calculator **Offer option calculator: profit per visitor** Compare up to three offer options on profit per visitor, margin per order times conversion, and see the conversion lift each one needs to match the best.](https://offersuite.io/calculators/offer-option-profit-per-visitor) - [Benchmark **Home and furniture benchmarks from annual reports** What 6 US-listed companies selling furniture, mattresses and home goods report: a median gross margin of 42.1%, from 30.2% to 56.4%. Read 13 October 2026.](https://offersuite.io/benchmarks/home) - [Glossary **Contribution margin: definition and formula** What an order keeps after every cost that grows with it: product cost, fulfilment, shipping, card fees and refunds. The number an offer should be judged on.](https://offersuite.io/glossary/contribution-margin)