The idea of subscription boxes was born around the year 2004 and it started to take off in the following few years. By 2019, the subscription box model had grown into a whopping $2.6-billion-dollar market. This market growth is a strong indication of the success of subscription boxes and has influenced many brands and businesses to adopt the idea. Many start-up subscriptions based businesses are looking forward to growing their revenue but growing your business is a linear process. What your business needs are scaling. Here’s the main difference:
To grow a business, you input resources (staff, technology, or adverts) that brings an equal revenue; whereas, when you scale a business you exponentially grow income without raising funds or expenses significantly. For instance, have you ever thought about why so many companies are taking on the mailing advertisement system? It is because you could send a mail to 10 or 1 million people, the cost does not increase and you still manage to create a wide coverage for your products and business!
Here are our ideas on scaling your subscription box business:
Bad pricing on your subscription plans can be the leading problem with losing customers. Your “fair” pricing may not be the same as customers’ perception of fair neither comparing your prices with the competitors is a good idea. High prices can be stopping your business from scaling properly. The longer you take in changing prices the more customers you risk losing.
Try offering a range and variety of prices and plans. To create the ideal plan with the right pricing for your subscription boxes, you will need to understand two fundamental ideas:
One of the exciting things about subscription boxes is the delight of the unknown or the excitement of discovery. This is what makes the subscription boxes business so successful. The evolving trends in business have brought about many innovations in the packaging lane, hence, it is important to keep up with the trend to stay in the game.
The first thing that is noticed by the customers is the packaging that encloses your products, it needs to be compelling enough to attract customers and call out to their attention. It reinforces the value of your subscription boxes while visually defining your brand.
The costs on the means of acquiring customers have gone up by 50% since 2014. To keep the prices in control yet increase your sales, make sure you are looking for customers in the right places. It matters a great deal to know who your buying customers are and what they demand and expect from your brand.
Research by Forbes presents a few common factors among the buyers of subscription boxes:
