Cost of presentation box

[effisk]

Hi all,

A question to those of you who are selling jewellery: how you calculate the maximum cost of presentation boxes. Is it according to the sale price of the jewel, or maybe its cost? And what percentage do you allow for your boxes?

I am looking for a new line of boxes and I was wondering if there are general rules to follow in terms of costs.

I have also attached photos of boxes I intend to use. Comments are welcome.

Thanks

 

[Winterson]

Hi, I have recently been going through these thoughts myself.

I don't think there is a straightforward answer to your question as it depends on whether you choose to use an off the shelf box or to have something custom made. That depends a little on your brand positioning, what you wish to deliver to the customer in terms of their experience, the quality, variety and volume of packaging you need.

For each box, a simple calculation could be a percentage of your average sales margin allowing for a net sales price across the range, any discount you might give in future and your jewellery cost. From my experience, a simple off the shelf box for a necklace could certainly be bought for 10% or less of your sales margin. For more bespoke and luxurious packaging, you are looking at a higher figure.

Sorry to be vague, but hope this helps !

Andrew

 

[effisk]

Hi Andrew,

Thanks for your answer. I am not considering custom made boxes at this stage - it will depend on the volume of sales we generate (This is for a new business). I am selecting three types of boxes; one for the lower end (~45% of volume) another for the medium to higher end (~50%) and another for the top end (maybe 5% of the total).

So are you saying the (cost of box/sales margin) ratio is higher for higher end products? I was thinking the opposite. When the box is 10% of the margin for a $200 product, it is around 7 to 8% for a $2000 product.

I Just had a look at your website, very nice design! Are you happy with Magento's admin panel? I tested it along with a couple other CMS and eventually went for a simpler alternative.

 

[Winterson]

Hi, what I was trying to say was that you could source a functional off the shelf package for less than 10% of the sales margin eg on a $200 sales price product. But that if you wanted to make it bespoke or more luxurious in materials and branding, then you would spend more than 10% for the same $200 product. I agree with you that as price moves higher to $2000, then the percentage could become lower. Hope this makes sense ?

Magento: I am growing to love it, the Admin panel is functional and works well.

Andrew

 

[Nerida]

I spend far less than 10% of sales margin for customised packaging. I have my boxes etc. manufactured in fairly large quantities, imported, and stored off-site and I would still suggest that it is closer to 5-6% of margin. For higher end goods, I have customised (but not bulk produced) boxes from a local supplier branded and the % would indeed be a little lower than that.

Like all cost of sales items though, for me it is costed into the price of the goods...

@Andrew - I agree, nice design on your site!