It’s the latest craze.
Finding a niche that you’re passionate about and creating a monthly subscription box of all your favorite products is a fun business venture.
You can share items that you regularly use with other people and spread the good news.
When you start your business, there are a couple of things you need to know.
Let’s look at what a subscription box is and how to calculate the average cost of one.
What is a Subscription Box?
So, what is this idea of a subscription box that everybody is talking about?
Wikipedia explains that a subscription box is a delivery of niche products that are recurring. The most common length of delivery is monthly. However, you can get subscription boxes that are sent to you once a season.
Subscription boxes are a way of marketing and distributing a product. Businesses that adopt this type of product placement follow a subscription business model. By catering to a specific set of interests and needs, they can target a broad range of customers.
Because this new business venture is still relatively small and young, there isn’t a lot of collected data out there to study. However, with what little is available, it is estimated that in America alone there could be up to 600 monthly subscription services currently operating.
Because subscription boxes can vary when it comes to their box pricing and the rate of delivery, they’re able to target groups of different socioeconomic standing. There is a wide margin when it comes to the price of a subscription box. Some will only cost $10, while others can be priced up to $100.
Now that you know what a subscription box is let’s take a look at using a subscription box calculator.
Using a Subscription Box Calculator
Alicia Doiron of Lemonstand explains how to use a subscription box calculator. The first thing to consider when following a subscription box model is using a term discount. This means rewarding customers that have been with you the longest by reducing their monthly subscription cost. The longer they have been with you, the higher the discount.
Next, you need to decide the duration of your subscription. Do you want to provide a service that is delivered month to month, or do you want your customers to sign up for a minimum of six months? You can always offer both plans and gather data on which is more popular.
To entice your customer into committing to six months or even a whole year, why not offer them a discount? Having an annual subscription discount for people who will subscribe for more than one month at a time is a great way to reward recurring customers.
The last thing you need to consider when calculating the cost of your subscription box is shipping. How much will it set you back to offer free shipping? How much could you charge for shipping without putting people off? It’s also recommended that you offer free shipping if customers sign up for six months or more.
Sourcing your Product Boxes
Now that you know how to calculate the cost of your subscription box let’s take a look at where to source your product’s packaging.
Packhelp is an excellent source for aesthetically appealing subscription box packaging. From patterns and bright colors to mattes and plain boxes, Packhelp has a wide variety to suit your niche.
You can jump online and design your subscription box, so it’s personalized for your needs. Once you’ve chosen your design, you’ll want to pick from their broad range of box types. These include mailer boxes, product boxes, envelopes, bags and even poly mailers. Whether you’re sourcing makeup or organic tea, there’s a box to suit your item.
Once you’ve decided on the type of box, you can choose how many you want to order. They have a quick and efficient delivery service. Orders from 30 boxes can be delivered to you within 14 days. On top of this, they offer free shipping.
Their packaging is eco-friendly yet visually attractive. Packhelp’s boxes are made out of quality material, so you don’t have to worry about their durability.
How to Price your Subscription Box
Starting up your own business around what you’re passionate about is something a lot of people dream of doing. With the subscription business model, it’s never been easier to source products to share with your customers and have them delivered worldwide every month.
Get started with a monthly subscription service by pricing your boxes correctly. While this could take a couple of tries, you’ll find the perfect price to suit your budget in no time.
Feature image via Cruelty Free Kitty