Tiered gifts with purchase for coffee brands

A gift at two units and a second at three, for coffee brands on sourced costs: what each tier's gifts cost, and what an order that steps up a tier keeps.

1 unit, no gift

Revenue $40.00 to contribution margin $12.05 (30.1%)
Revenue
$40.00
Cost of goods
−$12.00
Pick and pack
−$3.20
Shipping label
−$9.29
Card fee per order
−$0.30
Refunds
−$2.00
Card processing
−$1.16
Contribution margin
$12.05

2 declared kinds cost nothing on this option

3 units, two gifts

Revenue $120.00 to contribution margin $48.98 (40.8%)
Revenue
$120.00
Cost of goods
−$44.00
Pick and pack
−$3.20
Extra picks
−$1.92
Shipping label
−$12.12
Card fee per order
−$0.30
Refunds
−$6.00
Card processing
−$3.48
Contribution margin
$48.98

1 declared kind costs nothing on this option

Each tier, at full price and shipped free, per order
OptionCustomer paysShipping chargedCostsMarginMargin %Conversion against 1 unit
1 unit, no gift$40.00$0.00$27.95$12.0530.1%—
2 units, one gift$80.00$0.00$49.28$30.7238.4%can lose 60.8%
3 units, two gifts$120.00$0.00$71.02$48.9840.8%can lose 75.4%
The same orders without their gifts
OptionCustomer paysShipping chargedCostsMarginMargin %
2 units, no gift$80.00$0.00$44.80$35.2044.0%
3 units, no gift$120.00$0.00$62.06$57.9448.3%

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

The gift is a mug. One unit at $40.00 comes with none, two units with one and three units with two, all at full price and shipped free. The first tier's gift costs $4.48 and the second tier's two gifts $8.96: each gift's unit cost and one more pick.

After its gift the two-unit order keeps $30.72, against $12.05 for one unit, and the three-unit order keeps $48.98 after two gifts. A buyer who steps up from one unit to two adds $18.67 of margin, and from two to three $18.26.

A buyer who was taking two units anyway now costs $4.48 more, and one who was taking three $8.96 more. At the first tier, one step-up pays for the gifts of 4.2 orders that already qualified. Tiers pay when they sit just above what most orders already hold.

The cost structure, and where it comes from

Price$40.00, a bag of coffee. Offer Suite's dev store catalog
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 dev store catalog
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: 0.8 lb per unit. 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 mug: unit cost $4.00, retail $18.00. The dev store's mug gift: unit cost $4.00, compare-at $18.00.

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": "two-one-gift",
  "display": {
    "title": "2 units and a gift"
  },
  "lines": [
    {
      "role": "main",
      "quantity": 2,
      "purchase": {
        "type": "one_time"
      }
    },
    {
      "role": "gift",
      "quantity": 1,
      "purchase": {
        "type": "one_time"
      }
    }
  ],
  "pricing": {
    "promise": {
      "firstChargeCents": 8000,
      "renewalChargeCents": null
    }
  }
}

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

Questions

Are tiered gifts profitable for coffee brands?

On these costs, with a mug as the gift, two units and one gift keep $30.72 per order and three units and two gifts $48.98, against $12.05 for one unit. The tiers are profitable when they move buyers up; given to buyers already at a tier, they only cost the gift.

What does a second gift tier cost coffee brands?

$8.96 on an order of three here, for two gifts, against $4.48 for the one gift of the first tier. The step from two units to three adds $18.26 of margin after it.

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.