Shopify’s unit cost is often the manufacturing cost of one item. A pack of two, a gift box or a bundle costs more than that, and a margin worked out from the wrong cost flatters every pack and bundle you sell.
Packs are simplest as the single’s cost times the units plus any extra packaging. Bundles of different products are the sum of their contents. Gran works both out from the catalogue, and uses your own figure wherever you enter one.
Formula
Cost as sold = Σ (unit cost × units inside) + packaging
Example
A serum costs ₹205 to make. A pack of two in a gift box with ₹30 of packaging costs ₹440 as sold.
Margin from cost and price, or the price you need for a target margin, with tax handled properly.
Related terms
- COGS (cost of goods sold)COGS is the direct cost of the products you sold in a period: manufacturing or…
- Product profitabilityProduct profitability is the contribution each product earns after its own cost…
- Gross marginGross margin is the share of the selling price left after the direct cost of the…
Part of the growth marketing glossary by Shiva Sharma.