Hey there!
Welcome to our seventh newsletter — featuring content, links, and insight from our community and team.
Last time, we talked about emerging subscription industry trends. TL;DR — some bandwagons are more worth hopping on than others. Haven’t read it yet? Click here to catch up.
Today, we’re exploring a topic that every subscription business needs to approach a bit differently: 💸 pricing your offering effectively. Let’s dive in!
— Zaki Gulamani, Editor-in-Chief
Some beginning subscription box owners treat deciding on a price like an arbitrary guess, no better than throwing a dart at a wall. This is NOT the right approach. There is science - and a lot of math - to choosing the right price for your subscription box. There is also a bit of creativity and artistry involved.
— Sarah Williams, founder of Launch Your Box
Optimized pricing can help improve your conversion and retention rates.
Making sense of all the variables that affect your pricing strategy.
Think about your offer holistically, leaving no stone unturned.
Understand your basic costs first. How much do your products cost to source? How much is packaging? What about fulfillment and logistics? It all adds up!
Then, think about your pricing model. A flat fee will keep things simple for a limited offering with a defined buyer persona, while a tiered model might be up your alley if you want to offer a wider selection at different price points.