Gift with purchase for coffee brands

What a free gift costs coffee brands per order on sourced costs, and how much conversion it has to add to pay for itself.

Without the gift

Revenue $40.00 to gross margin $12.60 (31.5%)
Revenue
$40.00
cogs
−$12.00
pick_pack
−$3.20
shipping
−$8.74
processing_fixed
−$0.30
refunds
−$2.00
processing
−$1.16
Gross margin
$12.60

2 declared kinds cost nothing on this option

With a mug

Revenue $40.00 to gross margin $8.12 (20.3%)
Revenue
$40.00
cogs
−$16.00
pick_pack
−$3.20
extra_pick
−$0.48
shipping
−$8.74
processing_fixed
−$0.30
refunds
−$2.00
processing
−$1.16
Gross margin
$8.12

1 declared kinds cost nothing on this option

The same order, without and with the gift
OptionCustomer paysShipping chargedCostsMarginMargin %Conversion it needs
Without the gift$40.00$0.00$27.40$12.6031.5%
With a mug$40.00$0.00$31.88$8.1220.3%+55.2%

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

On an order at $40.00, a mug costs $4.48: its unit cost and one more pick. The customer pays the same, so the order's margin falls from $12.60 to $8.12.

To earn the same per visitor, the gift has to bring 55.2% more buyers. A cheaper gift, or a gift on larger orders only, needs less.

The gift's retail value ($18.00) is what the customer sees; its cost is what the margin pays. The demo store's mug gift: unit cost $4.00, compare-at $18.00.

The cost structure, and where it comes from

Price$40.00, a bag of coffee. Offer Suite's demo store catalog (offer-suite-demo.myshopify.com, docs/dev-store/catalog.json)
Unit cost$12.00. “Single Bag: price 40.00, unit cost 12.0 · mug gift: unit cost 4.0, compare-at 18.00” Offer Suite's demo store catalog (offer-suite-demo.myshopify.com, docs/dev-store/catalog.json)
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 September 23, 2026
Shipping labelUSPS Ground Advantage, commercial, Zone 5, by weight rounded up to the pound: 1 lb $8.74 · 2 lb $9.95 · 3 lb $11.57 · 4 lb $12.84 · 5 lb $13.48. Packed weight is an assumption: 0.8 lb per unit. USPS Notice 123, USPS Ground Advantage Commercial, Zone 5 (effective July 12, 2026), read September 23, 2026
Card fees2.9% + $0.30 per order, a common online card rate. Shopify doesn't publish one rate: it depends on your plan and the card. An assumption.
Refund reserve5%, Offer Suite's default assumption for consumables. NRF's all-category figure for online sales is 19.3%, but consumables are rarely returned; use your own rate.
Gifta mug: unit cost $4.00, retail $18.00. The demo store's mug gift: unit cost $4.00, compare-at $18.00.

The offer document an agent would write

This is the offer as a document, the way an agent writes it for Offer Suite's API. It validates against the offer schema as it stands. Ids are placeholders, except the coffee ones, which are the demo store's real products; the discount is stated the way the offer states it, and Offer Suite checks with a real cart that checkout charges exactly the prices above.

Show the document offer.json · validates against the offer schema
{
  "schema": "offer/1",
  "recipe": null,
  "identity": {
    "code": "PB_COFFEE_GIFT_WITH_PURCHASE",
    "experience": "pb-coffee-gift-with-purchase-v1",
    "campaign": "cmp_playbook",
    "presell": null,
    "signature": null,
    "carrier": {
      "cartAttributes": [
        "_oe_offer",
        "_oe_version",
        "_oe_code"
      ],
      "lineProperties": [
        "_oe_option",
        "_oe_role"
      ],
      "orderTags": [
        "offer:PB_COFFEE_GIFT_WITH_PURCHASE",
        "option:{optionKey}",
        "v:{version}"
      ],
      "passthroughKeys": []
    }
  },
  "shop": {
    "domain": "offer-suite-demo.myshopify.com",
    "market": {
      "country": "US",
      "currency": "USD"
    }
  },
  "campaignRef": null,
  "rulesRef": null,
  "selectionMode": "exclusive",
  "axes": [],
  "picks": [],
  "options": [
    {
      "key": "with-gift",
      "label": "With a mug",
      "isDefault": true,
      "surfaced": true,
      "axisValues": {},
      "unitCount": {
        "value": 1,
        "source": "declared"
      },
      "fallback": null,
      "groupKey": "with-gift",
      "lines": [
        {
          "role": "main",
          "quantity": 1,
          "required": true,
          "bind": {
            "resolveBy": "fixed_variant",
            "productId": "gid://shopify/Product/15092668957039",
            "variantId": "gid://shopify/ProductVariant/53479762788719"
          },
          "purchase": {
            "type": "one_time"
          },
          "priceSnapshot": {
            "price": 40,
            "compareAt": null,
            "at": "2026-09-23T00:00:00Z"
          },
          "cogsRef": "cost:variant/53479762788719"
        },
        {
          "role": "gift",
          "quantity": 1,
          "required": false,
          "bind": {
            "resolveBy": "fixed_variant",
            "productId": "gid://shopify/Product/15092670660975",
            "variantId": "gid://shopify/ProductVariant/53479764722031"
          },
          "purchase": {
            "type": "one_time"
          },
          "priceSnapshot": {
            "price": 18,
            "compareAt": null,
            "at": "2026-09-23T00:00:00Z"
          },
          "cogsRef": "cost:variant/53479764722031",
          "gift": {
            "anchorValue": 18,
            "fulfilmentCostRef": "cost:gift/coffee",
            "chargedPrice": 0
          }
        }
      ],
      "pricing": {
        "promisedFirstCharge": 40,
        "promisedRenewal": null,
        "compareAt": {
          "value": 40,
          "basis": "copy"
        },
        "shipping": {
          "free": true,
          "statedValue": null
        },
        "mechanisms": []
      },
      "gifts": {
        "mode": "inherit"
      },
      "checkout": {
        "mode": "checkout_direct"
      },
      "economics": {
        "retentionRate": null
      }
    }
  ],
  "valueStack": [],
  "relatedOffers": [],
  "terms": {
    "renewalDays": null,
    "guaranteeDays": null,
    "trialDays": null,
    "returnWindowDays": null,
    "maxPerCustomer": null,
    "subscriptionDiscountPersistence": "first_order_only"
  },
  "economicsDefaults": {
    "retentionRate": 0.7,
    "cacTarget": 0,
    "minGmPct": 0,
    "costProfile": "dtc-us"
  }
}