Gift wrapping can make a great year-round or seasonal side hustle. That said, figuring out how much to charge for gift wrapping can be a bit of a challenge.
Like any business, there are several factors you should consider when setting your rates.
In this guide, we’re going to explore the various factors you should consider, as well as a simple pricing formula you can use to set the perfect rate.
How Much Should You Charge For Gift Wrapping?
In short, you should plan to charge between $5 and $25 per gift or between $25 and $100 per hour, depending on the services you offer and your level of expertise. When setting your rates, you should consider the cost of materials, your clientele, the complexity of the wrapping, seasonality, your time, and the amount of profit you want to make.
You may also want to set an order minimum of between $20 to $30 to avoid overwhelming your business with small, unprofitable orders.
While some sellers may choose to charge a flat fee per gift, others may prefer to charge an hourly rate.
Whatever pricing strategy you choose, it’s important to stand firm in your rates and communicate them clearly to your customers from the get-go.
Factors To Consider When Setting Your Gift Wrapping Prices
When setting gift wrapping prices, there are several factors to consider to help you determine the right price for your services.
Here are some of the most important things to keep in mind:
Gift Wrapping Materials
The cost of gift wrapping materials is one of the most significant factors to consider when setting your prices.
For example, you’ll need to factor in the cost of wrapping paper, tape, bows, ribbons, and any other materials you use in your gift wrapping process.
You may also want to consider offering different types of wrapping paper or other materials at different price points to give your customers more options.
In some cases, gift wrappers will charge separately for labor and materials. This is one of the simplest ways to set your rates, as your price only increases depending on the cost of materials.
Another important factor to consider is the amount of time it takes you to wrap each gift.
Since gift wrapping is a service-based business, your time is your most valuable asset. Therefore, you need to make sure you’re charging enough to make it worth your effort.
Gift Size and Shape
The size and shape of the gift can also impact the price you charge for gift wrapping.
Larger, heavier, or more complex gifts may take longer to wrap and require more materials, so you may want to upcharge for these types of gifts.
Delivery and Pick-Up Options
If you offer delivery or pick-up options for your gift wrapping services, you’ll need to factor in the cost of transportation and any additional time it takes to deliver or pick up the gifts.
You should definitely charge an additional fee for these services to cover your costs.
Where You Live
As with any business, geography can and should play a big role when setting your gift wrapping prices.
For example, if your business caters to high-end clients, you may want to charge a premium. On the other hand, if your customer base consists mostly of friends, family members, and frugal shoppers, you may want to charge a lower rate.
Time Of Year
The time of year can also impact the prices you charge for gift wrapping. During the holiday season, for example, you may want to charge more for your services due to increased demand.
Timeframe To Complete
Finally, you’ll need to consider the timeframe to complete each gift wrapping job. If a customer needs a gift wrapped quickly, you may need to charge an additional fee to prioritize their request and ensure you can complete the job on time.
How To Set Your Gift Wrapping Prices (A Simple Formula)
When running a gift wrapping business, it’s important to set your prices in a way that is both profitable for you and perceived as a high value for your customers.
Here is a simple formula that can help you determine how much to charge for gift wrapping:
Start With Your Desired Profit
The first step is to determine how much profit you want to make per hour or on each gift that you wrap–depending on your pricing strategy.
For example, if you’re just starting out, you may want to opt for a slightly smaller profit margin while you build up your reputation and client base.
Over the course of time, you can always increase your rates.
Figure Out Your Cost Per Gift
Next, you need to calculate the cost of all the materials you will use for each gift, including boxes, ribbon, tape, and any additional items that may be required.
You should also factor in any additional charges for pick-up or delivery.
If you choose to charge separately for materials and labor, then this won’t be a factor. But, if you want to charge a single rate, then you need to carefully consider every expense and break it down into a total cost per gift.
Profit + Cost = Price
Once you have determined your desired profit and cost per gift, you can calculate your price by adding the two together. For example, if you want to make a $5 profit on each gift and your cost per gift is $3, your price would be $8.
On the other hand, if you just want to make $30 per hour, then all you have to do is charge your hourly rate plus the cost of materials…pretty simple!
Side note: I recommend marking up the price of materials to account for waste and maybe even a small profit. Since you won’t use every bit of material, you need to factor the excess into your material pricing so that it doesn’t erode your profit.
Consider Breaking Your Pricing Into Levels
To make your pricing more attractive to customers, you may want to consider breaking it into different levels based on the size or complexity of the gift.
For example, you could charge a lower price for small gifts and a higher price for larger or more complex gifts.
By using this simple formula, you can set your gift wrapping prices in a way that is both profitable for you and appealing to your customers.
Other Tips For Setting Your Gift Wrapping Rates
Research Your Competitors
One of the best ways to start figuring out your pricing is to research your competitors. Look at other gift wrapping services in your area, as well as online retailers like Amazon that offer free gift wrapping.
But don’t just look at their prices and assume you have to charge the same rate. While this might be a good starting point, you should look at the level of service they provide and what you could do differently to charge a higher price.
Differentiate Your Brand
To stand out from your competitors, it’s important to differentiate your brand. In other words, you should try to offer unique services or bonuses that your competitors don’t offer.
For example, you could offer custom gift wrapping designs, calligraphy, or a rush service for last-minute gift wrapping needs.
By offering something unique, you can justify charging a higher price and stand out from your competition.
Offer Unique Bonuses And Benefits
In addition to offering unique services, consider offering bonuses and benefits to your customers. For example, you could offer free gift wrapping for orders over a certain amount, or a discount on future orders for customers who refer their friends.
These kinds of bonuses will help encourage one-time customers to become repeat buyers and help sustain your business over the long haul.
See also: Side Hustle Burnout: 7 Ways To Avoid It
Add Value With Personalization
Personalization is a great way to add value to your gift wrapping service. It shows that you care about the recipient and have put thought into the gift. There are several ways to offer personalization options for your gift wrapping service.
Custom Gift Wrapping Options
One way to offer personalization is through custom gift wrapping options. This can include different wrapping paper designs, ribbon colors, and embellishments such as bows or tags.
By offering a variety of options, customers can choose the perfect combination to suit their recipient’s taste.
To make the process easier, consider creating a brochure or online gallery of your custom gift wrapping options. This will help your customers visualize their final product and choose the perfect combination.
Another way to add a personal touch is through personalized cards. This can include a handwritten note or a printed message.
Customers can provide the message or choose from a selection of pre-written options.
To make the process even more special, consider offering custom designs for the card. This can include the recipient’s name or a special message.
By offering this service, customers can create a truly unique gift experience.
In addition to personalized cards, offering gift messages can also add value to your gift wrapping service. This can include a printed message on the outside of the package or a note enclosed inside.
To make the process easier, consider providing a template for customers to fill out.
See also: How To Make Money With A Laser Engraver
Tips For Expanding Your Gift Wrapping Business
When running a gift wrapping business, there are several strategies you can use to expand your customer base. Here are a few simple ideas:
Get Yourself A Website
Having a website can help future customers find your business online and learn more about your services. Beyond that, it gives your current customers an easy way to spread the word about your business.
The best part is, you don’t need anything fancy or expensive–just a simple website that showcases your work and provides your contact information can work wonders.
You can use website builders like Wix to create a professional-looking website quickly and easily.
Promote Your Services Through Social Media
Social media platforms like Facebook, Instagram, TikTok, and Twitter can be great tools for promoting your gift wrapping business. You can share examples of your work, post updates about promotions or special offers, and interact with potential customers.
Ultimately, the key is to create content that resonates with your target audience and encourages them to reach out for more information.
Always Ask For Referrals
Word of mouth is one of the most powerful marketing tools for any growing business.
With that in mind, whenever you have a satisfied customer, ask them to refer their friends and family to your business. You can also offer incentives like discounts or free gift wrapping for referrals.
Blogging can be a great way to showcase your expertise and attract new customers.
You can write about gift wrapping tips, holiday trends, and other topics that your target audience would be interested in. Make sure to promote your blog on social media and your website to reach a wider audience.
Blogging is a great way to build authority and credibility in your customers’ eyes and demonstrate your expertise.
Get Active On Pinterest
Pinterest is a popular platform for finding gift wrapping inspiration, so make sure to create a profile and start pinning your work.
You can also create boards with gift wrapping ideas and tips to attract potential customers.
If you really want to take your Pinterest game to the next level, I recommend taking a course like Pinterest Traffic Avalanche to hit the ground running.
Partner With Local Retail Stores Or Ecommerce Businesses
Partnering with local retail stores or ecommerce businesses can help you reach a broader audience and increase your sales. You can offer your gift wrapping services to their customers or collaborate on promotions or special offers.
This is a great way to build customer relationships and increase your brand visibility.
Gift wrapping can make for a great side hustle, but you need to get your pricing right. If you charge too much, you might scare potential customers away. On the flip side, if you charge too little, you won’t earn enough money to make it worth your while.
Hopefully, the tips in this article will help you strike the perfect balance.
So, how much do you plan to charge for your gift wrapping business? Drop your thoughts in the comments below.