Instructions for Pricing Custom Gift Boxes

For Sales Representatives at Northwest Custom Apparel

Overview

This guide provides step-by-step instructions for pricing custom gift boxes for our customers' Christmas packages. Each gift box includes (this is an example):

  • 3 Embroidered Items:
    1. Carhartt Rain Defender Paxton Heavyweight Hooded Zip Mock Sweatshirt (CT100617)
    2. Port & Company Essential Fleece Pullover Hooded Sweatshirt (PC90H)
    3. Carhartt Force Short Sleeve Pocket T-Shirt (CT104616)
  • Free Carhartt Gloves (retail value $19.00) as an early order incentive
  • Personalized Packaging with the employee's name

Steps to Price a Gift Box

1. Determine the Number of Gift Boxes

  • Ask the Customer: How many gift boxes do they wish to order?
  • Example: Customer wants to order 20 gift boxes.

2. Confirm the Number of Items per Box

  • Each gift box contains 3 items.
  • Total Items: Number of boxes × 3 items per box.
  • Example: 20 boxes × 3 items = 60 total items.

3. Use the Price Break for 12-23 Units

  • Base Pricing Level: Always use the 12-23 units price break for each item, regardless of the total quantity.
  • Reason: Simplifies pricing and ensures consistency.

4. Calculate Item Costs per Box

Item Prices at 12-23 Units (Including Embroidery)

Item Style No. 12-23 Units Price
Carhartt Rain Defender Sweatshirt CT100617 $90.00
Port & Company Sweatshirt PC90H $37.00
Carhartt T-Shirt CT104616 $45.00

Note: The prices above are for sizes S-XL. The $5.00 buffer per box covers larger sizes and any unexpected costs.

5. Incorporate Size Surcharge and Buffer

  • Add $5.00 per Box: This covers larger size surcharges and any unexpected costs.
  • Do Not Add Individual Size Surcharges: The $5.00 buffer accounts for these.

6. Add Packaging and Handling Fees

  • Gift Box Charge: $4.00 per box
  • Handling Fee: $7.00 per box (includes processing, sorting, and personalizing)
  • Total Packaging & Handling: $4.00 + $7.00 = $11.00 per box

7. Calculate Total Cost per Box

Example Calculation for Sizes S-XL:

  1. Item Costs per Box:
    • Carhartt Sweatshirt: $90.00
    • Port & Company Sweatshirt: $37.00
    • Carhartt T-Shirt: $45.00
    • Subtotal Items: $90.00 + $37.00 + $45.00 = $172.00
  2. Add Packaging, Handling, and Buffer:
    • Packaging & Handling: $11.00
    • Size Buffer: $5.00
    • Total Additions: $11.00 + $5.00 = $16.00
  3. Total Cost per Box Before Discount:
    • $172.00 (Items) + $16.00 (Additions) = $188.00

8. Apply Volume Discount

  • Discount Rates:
    • 10-49 Boxes: 5% Discount
    • 50-99 Boxes: 10% Discount
    • 100+ Boxes: 15% Discount
  • Calculate Discount:
    • Number of Boxes: 20 boxes
    • Applicable Discount: 5%
    • Discount Amount per Box: $188.00 × 5% = $9.40
    • Discounted Price per Box: $188.00 - $9.40 = $178.60

9. Present the Final Price to the Customer

  • Final Price per Box: $178.60
  • Includes:
    • All three embroidered items
    • Packaging and handling
    • Size surcharge buffer
    • Free Carhartt gloves (for early orders)

10. Confirm Order Details

  • Sizes Needed: Collect sizes for each employee.
  • Logos: Obtain the company's logo for embroidery.
  • Employee Names: For personalizing the boxes.
  • Delivery Date: Confirm to ensure timely delivery.

Key Points to Remember

  • Price Consistency: Always use the 12-23 units price break for base pricing.
  • Simplified Pricing: The $5.00 buffer per box covers size surcharges—no need to calculate individual size upcharges.
  • Volume Discounts: Apply the appropriate discount based on the total number of boxes.
  • Early Order Incentive: Highlight the free Carhartt gloves for orders placed by the specified deadline.
  • Packaging & Handling: Always include the $11.00 fee per box.

Example Summary for Pricing

For 20 Boxes (Sizes S-XL)

  1. Item Costs per Box: $172.00
  2. Additions per Box:
    • Packaging & Handling: $11.00
    • Size Buffer: $5.00
    • Total Additions: $16.00
  3. Total Before Discount: $188.00
  4. Discount (5%): $9.40
  5. Final Price per Box: $188.00 - $9.40 = $178.60

Frequently Asked Questions

Q1: What if the customer orders sizes above XL?

A: The $5.00 buffer per box covers average size surcharges. No additional charges are necessary.

Q2: Should we adjust the base pricing if the customer orders more than 23 units of an item?

A: No, always use the 12-23 units price break for consistency.

Q3: Can the customer choose different items?

A: The standard gift box includes the three specified items. Any changes may require a custom quote.

Final Checklist

  • ✅ Determine Number of Boxes
  • ✅ Confirm 3 Items per Box
  • ✅ Use 12-23 Units Price Break for Each Item
  • ✅ Add $5.00 Buffer per Box
  • ✅ Include $11.00 Packaging & Handling Fee
  • ✅ Apply Appropriate Volume Discount
  • ✅ Present Final Price to Customer
  • ✅ Collect Order Details

Contact Information

Erik Mickelson

Manager at Northwest Custom Apparel

Email: [email protected]

Phone: 253-922-5793

By following this guide, you will ensure accurate and consistent pricing for our customers, enhancing their experience and promoting successful sales.