Gift with Purchase Cost Calculator
Costs you cost, reads as retail.
Net gain from the gift
−$1,611
4.3× perceived value to cost
The gift beats an equivalent discount by $2,427 a month, because it costs you cost of goods and reads as retail value. That 4.3× ratio is the whole mechanism.
How the Gift with Purchase Cost Calculator works
A gift costs you cost of goods and reads as retail value, which is why it beats an equivalent discount at the same perceived generosity. The ratio between perceived value and actual cost is the entire mechanism.
Also known as: GWP cost calculator · free gift promotion cost · cost of a gift with purchase
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price, check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
Is a gift better than a discount?
At equivalent perceived value, almost always, a £18 gift that costs you £4.20 buys more goodwill than a £4.20 discount and often more than an £18 one.
What should the gift be?
Something desirable, complementary and cheap for you to supply. Sample sizes, accessories and overstock all work; anything obviously unwanted damages the offer.
Should there be a spend threshold?
Yes, set above the average order value so the gift lifts the basket rather than simply reducing effective price on existing orders.
Does it increase shipping cost?
It can, if the gift adds weight or size. Small light gifts are worth more than heavy ones for that reason alone.