Free Subscription Box Calculation Sheet
Subscription box businesses can be a lot of fun. It’s a business model that has been around for decades (think “wine of the month, or “cigar of the month” clubs), and has really gained in popularity over the past few years.
With online platforms, such as CrateJoy, the cost and difficulty of starting your own subscription box business remains relatively low, making the subscription box business model a great business for aspiring entrepreneurs to get their feet wet in the realm of online businesses.
Along with good use of Social Media, I used a simple Excel spreadsheet to grow my own subscription box business to $30k in monthly revenue within 6 months of starting the business.
A solid spreadsheet can be used to quickly determine your subscription box business’s revenue, profit, profit margin, and overall easibility.
The spreadsheet, which can be downloaded here for free, includes tracking and calculation mechanisms for:
- Unit costs
- Import taxes
- Revenue generation
- Additional expenses
- Total profit
- Profit margins
This spreadsheet assumes that you have one pricing tier, and that all boxes have the same product and were sold at the same price. This is the most common model within the subscription box industry. This spreadsheet can easily be edited to suit your specific needs.
NOTE – All ORANGE boxes are where you can enter/update information. All GREY boxes consist of formulas; values in these boxes will be automatically calculated.
How to use this sheet:
- Start by entering the number of boxes sold (i.e. number of subscribers who will be receiving a box) (N6), and the price at which you sold those boxes (N5). Your gross revenue will automatically be calculated based on these values (N7).
- Next, enter the type of products you will be including in your box (B6-B15), quantity of each product (C6-C15), and unit price of each product (D6-D15). If you are importing the products from outside the country, there will likely be an import tax assessed on imported goods. Enter the percentage of any applicable import tax assessed on each product (G6-G15). Extended unit costs, costs associated with import taxes, and total product costs will all be automatically calculated based on the values you enter during this step.
- Your gross profit (N9) and gross profit margin (N8) are automatically calculated at this point. While there are infinite variations in the subscription box industry, a good rule of thumb for independent and home-based subscription box businesses is to have at least a 40% gross profit margin based on product purchases. If you are a larger operation requiring external warehousing, fulfillment, etc., you will likely require a higher profit margin.
- Enter any additional expense types (M13-M18) and the cost of each additional expense (N13-N18). Common additional expenses are packaging (boxes, inserts, tape, etc.), web hosting, marketing expenses, affiliate commissions, salaries, and utility bills.
- Your net profit (N22) and net profit margin (N23) are now calculated.
Again, a good spreadsheet will allow you to quickly determine the feasibility of the business model you envision, and the products you plan to include each month. This spreadsheet provides a great starting point to determine if your subscription box will be a profitable business venture.
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