Other things to consider when pricing your box To help you correctly price your subscription box, we created the following calculators:
#Business in a box pro pro#
Pro tip: As a rule of thumb, Cratejoy recommends pricing your box with at least a 40% profit margin to be considered sustainable. Whether you’re pricing too low to stay competitive or pricing too high to secure a hefty profit margin, both ends of the spectrum will threaten the viability of your business. One of the biggest mistakes a subscription box owner can make is mispricing their box. The bottom line: Figure out pricing that will make your business profitable and scalable. We felt that if we married our personal interest with a gap in the market, we could create a box which would become a time capsule of one’s youth.” –Retro Pop Box We are big fans of nostalgia, and when looking at subscription boxes, we did not find any that were answering the general nostalgia market. “We approached our idea from two directions: a business opportunity and a personally fulfilling opportunity. Pro tip: Learn more about customer profiles and 4 more concepts every subscription business owner should know on our blog! Take it from a merchant: Be open to learning who your true customers are over time and pivoting your marketing strategies accordingly.Ĭheck out this example brainstorming session for the luxury subscription box Lilee: You may find, for instance, that your idea of the perfect customer was a 20-something West Coast city dweller, but in reality, they’re a middle-aged mom in the Midwest. Once you’ve started advertising, refer back to these answers and adjust as necessary. How old is your customer? Where do they shop? What is their income level? What is their preferred social platform? Get as granular as you can with this exercise. Once you’ve found your niche and market fit, spend some time fleshing out your potential customer (pro tip: this may mean researching your competitors’ customers). Find which niche your box falls into on the Marketplace. In your research, you’ll want to be able to answer questions like How many boxes are you competing with? What are they offering and at what price? How can you differentiate your box from theirs?įun fact: Cratejoy currently is home to boxes in more than 12 categories and 84 subcategories. When looking for competitors, try searching for keywords related to your niche on the Cratejoy Marketplace and see what’s out there.
The subscription box economy is growing, but that doesn’t mean there isn’t space or demand for your box. Pro tip: Looking for subscription box ideas? Check out 50 subscription box ideas you can start today. The more specialized your box is, the easier it is to curate products for a specific audience, enabling you to maximize retention and create a great customer experience. For example, you could break down the above-mentioned niches into sub-niches like CrossFit, Korean beauty, and international snacks. When settling on your niche, try to get as specific as possible. What is your niche?Ī niche is best understood as a specific market for products and services. Let’s get started! Questions to Consider 1. Being as detailed as possible when analyzing your market fit, competitive analysis, and customer profile is the first steps in building a successful subscription business. When it comes to subscription commerce, what separates good ideas from great ones is specificity. The foundation of any strong business is a good idea. The bottom line: Identify your niche and find a market fit Step 1: Start with a great subscription box idea