Costing & Pricing

How to Price Product Bundles and Gift Baskets

Calculate bundle COGS, gift packaging, assembly labor, payment fees, discount depth, and contribution margin without giving away the most valuable item.

A bundle discount should come from strategy, not hidden cost.

List each included SKU, its quantity, true unit cost, and standalone retail value. Then add the outer box or basket, filler, ribbon, insert, assembly labor, damage allowance, and any extra fulfillment cost.

Build the calculation from reliable inputs

Compare three numbers: total standalone retail value, complete bundle cost, and proposed selling price. The visible customer savings can be attractive while the contribution margin remains healthy—but only if every packaging and labor cost is present.

Turn the answer into a repeatable process

Bundles can also create inventory problems. Decide whether availability is limited by the scarcest component, whether substitutions are allowed, and how returns or damaged components will be handled.

Try it with your own numbers

Use the free bundle and gift-basket margin calculator and verify the underlying costs with the true-cost guide.

This guide is educational and US-focused. Requirements and professional advice depend on your product, process, claims, sales channels, and location. Verify current official requirements before relying on a compliance decision.