How to Calculate The Price For Your Backpack
Our calculator is designed to be simple and easy to use. It covers:
- your base costs of time
It also allows you to input a desired profit margin on top.
We hope this calculator helps you make more money for your backpack line.
Please input below:
More Tips On Pricing Your Backpack
How To Price Your Backpack
One of the most challenging aspects to starting a backpack line is determining how much to charge for your backpack.
When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.
Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.
On the other hand, when businesses over-price, this tends to be just as damaging to the business.
When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.
Here are some factors to consider when pricing your product:
Understand your customer
It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:
- Customer demographic: Age, gender, location, etc.
- Buying habits of your customer: What they buy + when they buy
- Level of price sensitivity with your customer
All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.
Understand your costs
When pricing your backpack, it's critical that you first identify all of your costs and consequently mark up your backpack so you can factor in a profit.
The actual cost of your backpack may include things like:
- The actual cost to make the product (ie. raw materials, supplies, manufacturer).
- Shipping + overhead fees
- Operating costs to run your business
You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.
Create revenue goals
When determining the price of your backpack, you'll want to create goals for revenue + how much profit you want your backpack line to make.
This process is simpler than you may think:
- Think about your breakeven cost (by completing the above step).
- Create a revenue goal based on your break-even cost
- Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
- Divide your revenue goal by the number of items you plan to sell
This figure will help determine your estimated price per product in order to meet your revenue goals.
Evaluate your competition
The last piece in determining how to price your backpack is by simply looking at your competition.
The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your backpack fits best in the marketplace.
All of these factors play an equal part in pricing your backpack, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.
Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:
I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.
The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.
Examples of a successful backpack line:
Fred Perrotta from Remote started Tortuga over 11 years ago, a backpack line.
- Revenue: $300,000/ month
- Founders: 2
- Employees: 9
- Location: Remote
Hi, I’m Fred Perrotta, the co-founder, and CEO of Tortuga.
We help travelers avoid the cost and hassle of checking luggage with carry-on-sized travel backpacks and daypacks. Our flagship product and the Wirecutter’s recommendation for Best Carry On Bag is the Outbreaker Backpack.
Over the past nine years, we’ve bootstrapped our way to seven figures in revenue.
Tom Worcester from New York, New York, USA started Lunchbox over 3 years ago, a backpack line.
- Revenue: $55,000/ month
- Founders: 1
- Employees: 7
- Location: New York, New York, USA
I’m Tom Worcester, founder of Lunchbox, the first anti-theft festival hydration pack and the last festival bag you’ll ever need.
After conducting hundreds of interviews on a hunch that there was an underserved market, my team and I identified the top issues facing festival attendances - , theft (in the form of pickpockets), security bag restrictions, and time-consuming water lines. With these issues in mind, the Lunchbox was born.
To address theft, Lunchbox’s inward facing anti-theft zipper system is specialized to prevent against outside access & pickpockets. This means that the main access points are located against your back versus the standard outward facing zippers. The bag is also constructed out of a coated ballistic nylon, making it next to impossible for thieves to slice it open to steal its contents. Furthermore, Lunchbox’s EasyFill hydration method allows you to refill your bag 3 times faster than standard hydration packs. The bladder compartment is also fully insulated, keeping your water cooler for longer.
Gobi Gear ($240K/year)
Chez Brungraber from Bend, Oregon, USA started Gobi Gear about 7 years ago, a backpack line.
- Revenue: $20,000/ month
- Founders: 2
- Employees: 1
- Location: Bend, Oregon, USA
Hi guys! Thanks for stopping by. I’m Chez, the founder of Gobi Gear. I started Gobi Gear about 4 years ago to make organization easier and more fun, specifically focusing on the outdoor adventure and travel markets. Rummage less, explore more!
Our gear bags are designed to make staying organized easy, no matter where the adventure takes you. We take pride in selling high quality gear - expecting our items to last. We are a 1% For the Planet partner, and we use no plastic in our packaging - having saved over 70,000 plastic bags (and counting)!
Our first product was known as the Hoboroll - a super cool bag that works as a stuff sack or a day bag, with 5 inner organizational compartments and a secret stash pocket. Made of ultralight, water-resistant nylon, this bag fits in the palm of your hand but is ready for adventure at the drop of a hat.
Adventurist Backpack Co. ($198K/year)
Kelly Belknap from Denver, Colorado, USA started Adventurist Backpack Co. about 4 years ago, a backpack line.
- Revenue: $16,500/ month
- Founders: 2
- Employees: 0
- Location: Denver, Colorado, USA
My name is Kelly Belknap, and I co-founded Adventurist Backpack Co. along with my wife Matilda Sandstrom.
We design minimalist backpacks for travel, and for every backpack purchased, 25 meals are provided to families in need across the U.S. (We do this through our partner Feeding America, providing meals to over 200 food banks across the country.)
Our flagship product is our Adventurist Classic backpack, which is made as a daypack for travelers, hikers, students, and everyday use. It’s padded front/back for electronics and completely weather-resistant for any adventure - and also fits perfectly underneath the seat of an airplane. We have the Adventurist Classic available in 6 colors, and have 2 new designs on the way which will be available on our website starting at the end of August.
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