Subscribe-and-save discounts for pet brands

A subscribe-and-save offer for pet brands on sourced costs: first-order and renewal margin, and profit per subscriber at three retention rates.

First order

Revenue $24.85 to contribution margin −$6.18 (−24.9%)
Revenue
$24.85
Cost of goods
−$12.97
Pick and pack
−$3.20
Extra picks
−$0.48
Shipping label
−$12.12
Card fee per order
−$0.30
Refunds
−$1.24
Card processing
−$0.72
Contribution margin
−$6.18

1 declared kind costs nothing on this option

One-time, full price

Revenue $40.35 to contribution margin $11.73 (29.1%)
Revenue
$40.35
Cost of goods
−$9.81
Pick and pack
−$3.20
Shipping label
−$12.12
Card fee per order
−$0.30
Refunds
−$2.02
Card processing
−$1.17
Contribution margin
$11.73

2 declared kinds cost nothing on this option

First order, renewal and one-time, per order
OptionCustomer paysShipping chargedCostsMarginMargin %
First order$24.85$0.00$31.03−$6.18-24.9%
Renewal$27.95$0.00$27.64$0.311.1%
One-time, full price$31.06$9.29$28.62$11.7329.1%
Expected profit per subscriber over 12 orders, at three retention rates
Subscribers who take the next orderProfit per subscriberPasses a one-time buyer at
50.0% take the next order−$5.87not within 12 orders
70.0% take the next order−$5.47not within 12 orders
85.0% take the next order−$4.72not within 12 orders

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

20.0% off the first order ($24.85) with a toy in the first box, then 10.0% off every renewal ($27.95), shipped free. The first order keeps −$6.18 and each renewal $0.31. A one-time buyer at full price, paying $9.29 for shipping, keeps $11.73.

If 70.0% of subscribers take each next order, a subscriber earns −$5.47 over twelve orders, and never passes the one-time buyer in that time. Retention decides the offer: the table shows three rates.

Free shipping is part of the offer's cost here: every subscription order pays its $12.12 label. The welcome gift, a toy with a unit cost of $3.16, is paid once, on the first order only.

The cost structure, and where it comes from

Price$31.06, the average order. BARK, fiscal fourth quarter and full year 2026 results, read 23 September 2026
Unit cost$9.81. From the reported gross margin: “DTC gross margin expanded 230 basis points year-over-year to 68.4% (excluding BARK Air) · Average order value $31.06” BARK, fiscal fourth quarter and full year 2026 results, read 23 September 2026
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
Shipping labelUSPS 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: 3 lb per order. USPS Notice 123, USPS Ground Advantage Commercial, Zone 5 (effective 4 October 2026), read 13 October 2026
Card fees2.9% + $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 Rates by plan and country
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 toy: unit cost $3.16, retail $10.00. A $10 toy, costed at BARK's reported direct-to-consumer 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 2 options · excerpt
{
  "key": "subscribe",
  "display": {
    "title": "Subscribe and save"
  },
  "lines": [
    {
      "role": "main",
      "quantity": 1,
      "purchase": {
        "type": "subscription",
        "intervalDays": 30
      }
    },
    {
      "role": "gift",
      "quantity": 1,
      "purchase": {
        "type": "one_time"
      }
    }
  ],
  "pricing": {
    "promise": {
      "firstChargeCents": 2485,
      "renewalChargeCents": 2795
    }
  }
}

How Offer Suite validates, versions and publishes a document like this one: offer documents.

Questions

Is subscribe and save profitable for pet brands?

On these costs the first order loses $6.18 and each renewal keeps $0.31. If 70.0% of subscribers take each next order, a subscriber loses $5.47 over twelve orders, against $11.73 from a one-time buyer.

When is a subscriber worth more than a one-time buyer for pet brands?

At 50.0% retention, not within twelve orders. At 70.0% retention, not within twelve orders. At 85.0% retention, not within twelve orders.

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.