How do I create a profitable subscription box?
When you're struggling to find new subscribers and think your price point might be the issue, but you're not making enough profit as it is.
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This week's Subscription Box Q&A question is from Nia - and it's one I'm often asked by early-stage subscription box businesses:
My sales are low, they aren't growing and I'm struggling to reach my target audience. Price being too high is often referenced, but I make a little profit after expenses. We offer free shipping codes for the first box, but shipping is quite high, which hits my profit margins. I'd love to hear your thoughts.
This is one a lot of subscription boxes come up against, especially in the early days where you're trying to find that sweet spot between making a profit / having a healthy business, and meeting what your customers want to pay.
If can feel that there are a lot of fluid elements, but they really break down to 3 key factors:
- Your audience
- Your box costs
- Your marketing costs
Let's go through each one and how to find that sweet spot for your subscription box.
Watch this week’s video (click the image above) to learn more.
All my best,
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