How to price your subscription box?
One of the most important things to do when you are setting up a Subscription boxes business is to get your pricing right. Mispricing your box can be the worst mistake for your business. Whether you are pricing your box too high to make a lot of profits or you are pricing the box too low to stay competitive, both ends will threaten the viability of your subscription box business. That is why it is recommended that you price your box at least 40% for it to be sustainable. To help you price your subscription box correctly, here are some tips for you
When you are pricing your subscription box, the first important thing that you should consider is the product cost. Know the cost of the products or items in your box.
The cost of the box
Apart from the product cost, you should also consider the cost of the box. These include things like stickers and even stamps or any other accessories in your box.
The packing material
You should also put the packing material into consideration when you are pricing your subscription boxes UK. Materials that should determine your pricing include bubble, filler paper, inserts, and wraps.
The shipping cost or the postage cost
Shipping cost or the postage cost also make a huge part of the box pricing. Things such as mailing labels and packaging tape will always be a very important part of your pricing.
Transaction and platform fees
There are charges that you will incur from your eCommerce platform per every order and chargers from your payment processor. This can also shape how you price your subscription box.
Fixed monthly costs
We also have monthly costs such as accounting software fees and Gmail fees among other fees.