Subscription box services are gaining much popularity in today’s market and have become a trend. However, being a much newer idea than other forms of retail businesses, these still are not as much trusted and invested in by regular people. Yet the potential they have shown in specific product niches cannot be ignored and a lot of intelligent businesses and new startups are using these custom subscription boxes to their full advantage.
Keeping in mind the basic idea behind subscription boxes and these being available for many different product types, once you choose the right niche for your service, success is not far away. Packaging these unique subscription products in relevant and beautifully suitable Custom Boxes is of great importance and can make or break any service idea with the appeal that they have and functional attributes to match as well. We asked a few industry experts who have been thriving with their subscription box businesses and here’s what they had to say as far as tips for success are concerned:
1: Be Sure About Your Subscription Box Website Product
To kick things off, the first thing to keep in mind is that the road to becoming a successful entrepreneur is a long and steep one and surely you will find there is not way around it accept hard work and dedication and also knowing what you are best at while sticking to your big firing guns at all times. Similarly, you should always keep in mind that your future customers would have traditionally enjoyed purchasing within their lifestyles and will have to like your idea better than their good old ways in order to invest in it.
The second part is to offer something you are good at. Specializing in cosmetics you should not offer your customers sports products subscription boxes because of lack of knowledge on your part. Failure is a solid prediction in these kinds of scenarios. However if you keep digging into your specialties like Flavourly did in the UK with foodie special and craft beer conisseurs, future success becomes much easier. Here are a few talented subscription box options from food and cosmetics industries:
2: Figure Out How Sourcing and Pricing Will be done for Your Products
There are two major product-sourcing options available when you are planning your subscription box startup business:
Free Products – As hard as it might be to believe but a high number of subscription Custom Boxes businesses get their products free of cost from manufacturers where they use their services as part of marketing tools for brands. Not only is this way much economical removing manufacturing costs but also when you use high quality Custom Printed Boxes, your own subscription box business brand will get all the traction that you need.
Paid Products – The much larger variety and purposeful products available for purchase in the market overshadow the effectiveness and efficiency of free products. When you want that ultimate product unboxing experience for your customers, high quality products from already established brands that might not have interests in such marketing tools simply because of the already established popularity their products have packaged in high quality Custom Packaging is the best idea.
Finally, pricing needs to be established as well. You will need to keep prices low if you are a startup but a general rule of thumb in the industry is to have a 40% profit additional to any costs to cover all your expenses.
3: Identifying Your Potential Perfect Customers
Placing your subscription in the market is of the greatest importance and will make or break the future of your business depending on how well you did this. However, this can also be the simplest trick in the book, for foodie subscription boxes, potentially everyone with a shared taste bud to your type of packaged products can be a target, however, for cosmetics, toys, superhero or sports types of subscription boxes, the choices get much more narrow.
This is where Custom Printed Boxes will play their role. Custom Packaging can provide that unique separator for your brand and you will have to use direct, appealing and meaningful ideas for packaging to target a certain set of identified customer base.
4: Maintain Shipping & Handling Channels
Shipping and handling will always be of great significance in the retail market and custom subscription boxes are no different. Having designed and packaged your perfect products in suitably beautiful Custom Packaging, you will now need to establish and maintain efficient shipping and handling channels. Start making deals with logistics and courier services and have monthly or quarterly payment schemes with them because every shipping box payment can be a bit too steep for everyone.
5: Test Membership Options with Work-Able Data
One of the most efficient tips regarding memberships in any kind of business is to not try to lock customers in lengthy contracts. This is one of the major turn offs for a lot of people, so much so that even mobile service providers are eventually finding it out now. Plan your subscription services in deals with customers that become a type of pay as you go scenario. Best options are monthly charges without any locked contract at all and even if you do have to go the contract way, make them as small as possible.
Also test a few membership options that provide you work-able date regarding your specific customer base. Starting out with 100 or even a 1,000 test memberships is a great idea.
6: Marketing for Your Subscription Boxes
Marketing will always make or break your subscription box business. The set of successful subscription box service providers we asked highlighted the need for prior launch marketing. They said that a period of 15 – 60 days is appropriate for prior launch marketing and creates all the hype required for your startup. However, gaining email marketing channels, coupons and vouchers enclosed in papers, magazines or sales receipts, posting viral videos on social media or even influence outreach are all good investments and will bear fruit once you are into your cycle.
7: Preparing for Your challenges
In the end, all our interviewed experts agreed on the fact that you will face challenges. These will always include:
- Free Products Challenges – If you did go with the free products option, your providers will eventually stop offering their products for free making sourcing a problem.
- Shipping – Custom Printed Boxes containing your subscription products will have to be shipped and once you start getting too many subscriptions, it will become a headache trying to manage all those shipping Custom Boxes.
- Returns – As much as you would prefer not to have these, subscription products tend to come back a lot. Our experts told us about 30% to 40% of packaged products come back. You will simply have to look past this.