How to Price Your Subscription Box

In Subscription School’s next 60-second sesh, Jesse tackles the process behind pricing your subscription box. Learn about COGS, product cost, fulfillment costs, and how to use these metrics to decide on a price for your business.

In Subscription School’s next 60-second sesh, Jesse tackles the process behind pricing your subscription box. Learn about COGS, product cost, fulfillment costs, and how to use these metrics to decide on a price for your business.

For the subscription box calculator, click here:
https://www.cratejoy.com/sell/power-subscription-box-calculator

Transcript: How to Price Your Subscription Box

Hi everyone. My name is Jesse, and you’re watching Subscription School’s next 60 second sesh. Today we’re talking about how to Price Your Subscription Box.

When it comes to pricing your subscription, it’s best to start with an understanding of what it will cost YOU to actually bring your product to market. This involves the core metric of COGS (cost of goods sold), which is made up of product and fulfillment cost.

Product costs include the cost of the products inside your box, the cost of the box itself, tissue paper, and any other custom inserts – all the goods you use to curate the product experience for customers.

Fulfillment costs are the cost associated with packing and shipping the product to your customers doorsteps. This includes the cost of a packing labor as well as the cost of postage and labels.

When we add product cost and fulfillment cost together, we end up with our COGS – which means we’re almost ready to price our subscription box.

Generally, you want to be working with a 40-45% profit margin after COGS. This is the money you use to pay for operation and services, as well as any other labor and employee salaries. Using your calculations from before, apply this formula. Look at the result and round up to the nearest $0.95 or “rounder” number for people’s minds. What are you left with?

Questions? Learn more about pricing your subscription and find the official Cratejoy Subscription Box Calculator at SubscriptionSchool.com. And don’t forget to follow us on Facebook & YouTube for our most recent videos.

About Jesse Richardson

Jesse Richardson is an author, educator and co-founder of several successful subscription businesses. He focuses on building engaging communities and has been described as "insanely customer centric." Find him in the Subscription School group or at his blog.

3 Responses

  1. Hi Jesse,

    company had given me this price quote How to find per boxes price $0.68/Box like

    Custom Boxes (Pillow Box Style), Size: 5” x 4” x 3”(length x width x depth), 18pt/140lb Card Stock, Printed Full Color.

    Qty 5,000 $0.68/Box

    please guide me that how to calculate $0.68/Box

    1. Felicity Fromholz

      Hi Chan,

      Could you please clarify this question for me? Are you trying to source the boxes at this price or have you already found somewhere to buy them?

  2. Hi Felicity,

    i wanna know that how to make a quote of custom boxes.

    Custom Boxes (Pillow Box Style), Size: 5” x 4” x 3”(length x width x depth), 18pt/140lb Card Stock, Printed Full Color.

    Qty 5,000 how to calculate per box and total boxes price?

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