Pricing gift baskets

[Guest]

How do you price for a gift basket? I always find myself loosing money on them.

My soaps individually are $5 a bar.
My body butters are $10 for 8 oz jar.

Then I add a soap dish and a loofah.
By the time i've added a basket and shrink wrap...then mail it....I've spent nearly $25.00 just to make. Then there is postage to send....


Any suggestions....????

 

[CiCi]

Not sure, but it sounds like you are counting retail costs. What you need to do is add up how much your cost to make the soap and the butter. Add the cost of the basket, loofah, shrink wrap and electricity to shrink it. Add up any cost of ribbon and basket filler...and mileage. Multiply that by four. Many times you can even times it more, depending on what is in the basket. You shouldn't lose any money. It will get you your cost plus salary. I used to make gift baskets and always made a profit on each basket with this formula.

 

[Guest]

You can charge the amount of your products only, and give the basket, wrapping, dish for free. Like if its 35.00 total to make it.. give it a like a 5-8.00 discount.. dont lose so much money on it.

 

[Tabitha]

I generally toss the basket, shreds , cello & bow in for free also. My cost on those items will be between 2-3 dollars total. It's very similar to a buy 4 get 1 free sale. They are buying 4 (or more items at regular price) and getting the 5th (the basket) for free. I charge exact cost on shipping so that is not figured into the cost of the basket. It is added seperately.