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Lost $12k on a failed subscription box, the real killer was packaging costs

Three years ago I launched a snack box startup out of Austin and thought I had the margins figured out. I spent a whole month testing product costs but never weighed the custom boxes and inserts. Last month I finally ran the numbers and realized packaging ate up 40% of every order, we were losing money on each subscriber from day one. The lesson hit me hard when our shipping partner in Dallas showed us the dimensional weight fees. Did anyone else get blindsided by fulfillment costs that you didn't see in your early spreadsheets?
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