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 gross margin −$5.63 (−22.7%)
Revenue
$24.85
cogs
−$12.97
pick_pack
−$3.20
extra_pick
−$0.48
shipping
−$11.57
processing_fixed
−$0.30
refunds
−$1.24
processing
−$0.72
Gross margin
−$5.63

1 declared kinds cost nothing on this option

One-time, full price

Revenue $39.80 to gross margin $11.78 (29.6%)
Revenue
$39.80
cogs
−$9.81
pick_pack
−$3.20
shipping
−$11.57
processing_fixed
−$0.30
refunds
−$1.99
processing
−$1.15
Gross margin
$11.78

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$30.48−$5.63-22.7%
Renewal$27.95$0.00$27.09$0.863.1%
One-time, full price$31.06$8.74$28.02$11.7829.6%
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%−$4.77not within 12 orders
70.0%−$3.66not within 12 orders
85.0%−$1.57not 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 −$5.63 and each renewal $0.86. A one-time buyer at full price, paying $8.74 for shipping, keeps $11.78.

If 70.0% of subscribers take each next order, a subscriber earns −$3.66 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 $11.57 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 September 23, 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 September 23, 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 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: 3 lb per order. 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 toy: unit cost $3.16, retail $10.00. A $10 toy, costed at BARK's reported direct-to-consumer gross margin.

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; 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_PET_SUBSCRIBE_AND_SAVE",
    "experience": "pb-pet-subscribe-and-save-v1",
    "campaign": "cmp_playbook",
    "presell": null,
    "signature": null,
    "carrier": {
      "cartAttributes": [
        "_oe_offer",
        "_oe_version",
        "_oe_code"
      ],
      "lineProperties": [
        "_oe_option",
        "_oe_role"
      ],
      "orderTags": [
        "offer:PB_PET_SUBSCRIBE_AND_SAVE",
        "option:{optionKey}",
        "v:{version}"
      ],
      "passthroughKeys": []
    }
  },
  "shop": {
    "domain": "your-store.myshopify.com",
    "market": {
      "country": "US",
      "currency": "USD"
    }
  },
  "campaignRef": null,
  "rulesRef": null,
  "selectionMode": "exclusive",
  "axes": [],
  "picks": [],
  "options": [
    {
      "key": "one-time",
      "label": "One-time",
      "isDefault": false,
      "surfaced": true,
      "axisValues": {},
      "unitCount": {
        "value": 1,
        "source": "declared"
      },
      "fallback": null,
      "groupKey": "one-time",
      "lines": [
        {
          "role": "main",
          "quantity": 1,
          "required": true,
          "bind": {
            "resolveBy": "fixed_variant",
            "productId": "gid://shopify/Product/900000301",
            "variantId": "gid://shopify/ProductVariant/900000301"
          },
          "purchase": {
            "type": "one_time"
          },
          "priceSnapshot": {
            "price": 31.06,
            "compareAt": null,
            "at": "2026-09-23T00:00:00Z"
          },
          "cogsRef": "cost:variant/900000301"
        }
      ],
      "pricing": {
        "promisedFirstCharge": 31.06,
        "promisedRenewal": null,
        "compareAt": {
          "value": 31.06,
          "basis": "copy"
        },
        "shipping": {
          "free": false,
          "statedValue": null
        },
        "mechanisms": []
      },
      "gifts": {
        "mode": "inherit"
      },
      "checkout": {
        "mode": "checkout_direct"
      },
      "economics": {
        "retentionRate": null
      }
    },
    {
      "key": "subscribe",
      "label": "Subscribe and save",
      "isDefault": true,
      "surfaced": true,
      "axisValues": {},
      "unitCount": {
        "value": 1,
        "source": "declared"
      },
      "fallback": null,
      "groupKey": "subscribe",
      "lines": [
        {
          "role": "main",
          "quantity": 1,
          "required": true,
          "bind": {
            "resolveBy": "fixed_variant",
            "productId": "gid://shopify/Product/900000301",
            "variantId": "gid://shopify/ProductVariant/900000301"
          },
          "purchase": {
            "type": "subscription",
            "sellingPlanId": "gid://shopify/SellingPlan/900000303",
            "frequencyDays": 30,
            "recurs": true
          },
          "priceSnapshot": {
            "price": 31.06,
            "compareAt": null,
            "at": "2026-09-23T00:00:00Z"
          },
          "cogsRef": "cost:variant/900000301"
        },
        {
          "role": "gift",
          "quantity": 1,
          "required": false,
          "bind": {
            "resolveBy": "fixed_variant",
            "productId": "gid://shopify/Product/900000302",
            "variantId": "gid://shopify/ProductVariant/900000302"
          },
          "purchase": {
            "type": "one_time"
          },
          "priceSnapshot": {
            "price": 10,
            "compareAt": null,
            "at": "2026-09-23T00:00:00Z"
          },
          "cogsRef": "cost:variant/900000302",
          "gift": {
            "anchorValue": 10,
            "fulfilmentCostRef": "cost:gift/pet",
            "chargedPrice": 0
          }
        }
      ],
      "pricing": {
        "promisedFirstCharge": 24.85,
        "promisedRenewal": 27.95,
        "compareAt": {
          "value": 31.06,
          "basis": "copy"
        },
        "shipping": {
          "free": true,
          "statedValue": null
        },
        "mechanisms": [
          {
            "type": "discount_function",
            "discountRef": null,
            "roles": [
              "main"
            ],
            "value": {
              "type": "percentage",
              "amount": 20
            },
            "appliesTo": "first_charge"
          },
          {
            "type": "selling_plan_adjustment",
            "sellingPlanId": "gid://shopify/SellingPlan/900000303",
            "expectedAdjustments": [
              {
                "orderIndex": 2,
                "value": {
                  "type": "percentage",
                  "amount": 10
                }
              }
            ]
          }
        ]
      },
      "gifts": {
        "mode": "inherit"
      },
      "checkout": {
        "mode": "checkout_direct"
      },
      "economics": {
        "retentionRate": null
      }
    }
  ],
  "valueStack": [],
  "relatedOffers": [],
  "terms": {
    "renewalDays": 30,
    "guaranteeDays": null,
    "trialDays": null,
    "returnWindowDays": null,
    "maxPerCustomer": null,
    "subscriptionDiscountPersistence": "recurring"
  },
  "economicsDefaults": {
    "retentionRate": 0.7,
    "cacTarget": 0,
    "minGmPct": 0,
    "costProfile": "dtc-us"
  }
}