The price you can charge for wrapping Christmas presents will vary based on a few factors, however, you can charge from $30 to $50 for extra large gifts. But when wrapping gifts at the mall, you should charge around $3 and $10 per package, depending on its shape, size, and extra decoration.
A gift wrapping business gets paid to wrap gifts for customers. They can also sell wrapping paper and other gift wrapping accessories. A good number of businesses in this industry operate inside department stores, while some may be roadside shops or kiosks in a mall or even a retail shop, but in all, customers tend to pay for the paper and the wrapping service.
When you start this business, you make money from people or businesses who will pay for you to wrap the gifts they bought. You can purchase your wrapping supplies at wholesale rates, and then charge a premium for your service, this entails substantial income for your business. To be successful in this business, ensure that you are wrapping beautiful boxes and spending less on the supplies than you are charging.
According to industry reports, the gift wrapping industry was sized at around $15.11 billion in 2018 and is expected to increase to $24.9 billion by 2025. Very little or no information is available about gift wrapping as a personalized service because businesses in this industry are mostly small and privately owned.
When starting this business and considering pricing, the first thing to do is analyze the costs associated with doing your business. For the first few months, you can focus on growing and expanding your business by offering discounts and special offers. Ensure to set a price that at least pays for the expenses attached to the business.
It is also imperative that you research the industry for market trends. Have it in mind that you should never charge anything higher than an established business during the first phase of the launch. Owing to that, it is recommended that you set a price that is less than the industry average to draw new customers in and grow your customer base.
Factors that Influence the Price You Can Charge for Wrapping Christmas Presents
A good price for wrapping a gift is $10 – $50. If you charge $25 and wrap an average of 10 gifts per day (more during the holidays), you can expect to make $91,250 in revenue per year. However, just like it was stated above, certain factors influence the price you can charge to wrap Christmas presents, and these factors include;
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Wrapping materials can be divided into paper wraps, paper boxes, leather boxes, wooden boxes, etc. depending on the material. A few other essentials for a gift-wrapping business are ribbons, scissors, bows, gift boxes and bags of various sizes, tissue paper, and wrapping paper. The wrapping paper is typically categorized into themes, colors, and styles. For the same material, paper, for instance, there can be different weights and different costs, and these costs can fluctuate naturally.
Pricing is also based on your location, and this is why researching your immediate area, as well as the gift wrapping prices set by major shipping retailers such as Amazon, is a crucial component when putting together the pricing structure of your business.
Have it in mind that gift wrapping has a massive potential of generating good money if you live in a bigger city or town with many shopping malls. Always remember that the population plays a vital role in defining the price you can charge and also the success of the wrapping business.
In this line of business, there are many pricing strategies you can leverage on. You can offer an hourly rate of around $15 to $35, but this will more or less depend on the type of gifts and the complexities it involves. You can also choose to charge on a per gift basis and still make good money. Hourly rates are mostly for people who place bulk orders that require hours of work from gift wrapping professionals.
Gift Size or Weight
You can also set a price based on the size or weight of the package. Charge $4 for a small gift, $7 for a medium-sized item, and $10 for a giant. Have in mind that this is not the standard price; you can set your prices based on your market analysis. However, always ensure to give your customers special discounts and reduce costs during some occasions to improve customer relationships.
People will always prefer professional wrappers because they want a better presentation of their gifts. Owing to that, it is imperative to focus on improving skills and gaining knowledge during the first phase of the business. Note that the more skills you have, the greater the revenue you can generate.
If you already have some working experience with a gift wrapping franchise, you can charge anything from $25 to $40 for an hour. Meanwhile, if you are just a new entrant with some expertise in how things work, you may start charging an hourly rate of $15 to $25 for the first few months.
Management and Ongoing Expenses
The way you run your business, how you source your materials, and your overhead cost will influence the price you charge for your services. Your supplies of paper, scissors, tape, etc. will always have to be restocked. If you are running an actual storefront, there will be a lease, utility, and other maintenance costs involved. Your van will also have to be included as part of your business expenses.
The gift wrapping business is very lucrative as long as you possess the right knowledge and skillset to differentiate yourself from the rest. Have it in mind that a good number of people will pay you to wrap gifts for them since they do not have the patience or expertise to wrap their gifts by themselves. Nevertheless, ensure you are wrapping beautiful boxes and spending less on supplies than you are charging.