Inserts, labels and tags as a cost per unit
Small printed items are easy to ignore because each costs cents. Across every unit sold in a year they add up, and they are simple to cost once and review rarely.
Updated
What counts
- On the product: care and content labels, hang tags, barcode stickers, instruction leaflets, warranty cards.
- In the parcel: thank-you cards, discount cards, samples, returns slips.
Costing them
| Item | Bought | Paid | Per piece | Per |
|---|---|---|---|---|
| Hang tag and string | 10,000 | $600.00 | $0.06 | unit |
| Care leaflet | 10,000 | $400.00 | $0.04 | unit |
| Thank-you card | 5,000 | $450.00 | $0.09 | order |
With 1.4 units per order, the card is about $0.06 per unit. Total: $0.16 per unit. At 30,000 units a year that is $4,800.
Does it belong in cost per item
Items attached to the product generally do. Parcel inserts are a matter of policy; many stores treat them as marketing. If you are unsure, keep them out of the Shopify number and in your own margin.
Recording it in Cogsy
Either fold them into your packaging kind, or add an “Inserts and labels” cost kind with a shop default so they stay visible as their own line.
Questions
- Are inserts part of the product's cost?
- An item that is part of the product as sold, such as a care label or a hang tag, is. A marketing card added to the parcel is closer to a marketing or fulfilment expense.
- One insert goes in each order, not each unit. How do I cost it?
- Divide its cost by your average units per order to get a per-unit figure.
Related
Cost type
PackagingHow to work out packaging cost per unit for a Shopify product, the difference between product packaging and shipping packaging, and where each belongs.
Feature
Costs on top of the unit costPackaging, fulfilment or duties per unit, or fees as a percentage of the price, for a variant, a product or the whole shop.
Glossary
Unit costUnit cost is what one unit of a product costs you to buy or make. How to calculate it for bought and made goods, and what belongs in it.