April 15, 2024 • 12 mins
Thinking of adding a subscription service to your existing business? We've got what you need! Learn the 5Ps of successful integration in our new podcast episode. You'll LOVE hearing how recurring revenue can change the trajectory of your business and how automatic shipments can be a HUGE win for your customers!
- Subscription Box pricing guide
- Oats Overnight (referral link)
- Get $10 at Stickermule (new customers only, referral link)
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
So you want to launch a subscription box and don't
know where to start?
Girl, you are in the rightplace.
I'm Julie Ball and I'm ReneeGonzalez, your host here at
Subscription Box Basics, apodcast for new and aspiring
subscription box entrepreneurswanting to avoid overwhelm.
So grab a coffee, some pen andpaper and let's have some fun.
(00:21):
Hey everybody, and welcome backto Subscription Box Basics, the
podcast.
This is Julie Ball, and this isan episode for existing business
owners that want to add asubscription element to their
business.
It's such a smart move and it'slow-hanging fruit, and so
that's what we're going to betalking about today.
If this is you, then you're ina good spot because you already
(00:45):
have an existing business.
You likely already have anemail list, you already have
followers and a website Allthese things that you did early
on to start your business.
They're already done, so itputs you in a really good spot.
Now, that's not to discouragepeople from starting a
subscription box from scratch.
(01:05):
I'm just talking to a littlebit different audience today and
letting you know that this isgoing to be much easier for you,
as an existing business, to addthis as a new stream of revenue
, so I'm trying to make thissuper simple for you so that you
can take action right away, andso I've narrowed it down to
five things that I want you toconsider when you are thinking
(01:27):
about adding a subscription toyour existing business.
So those five things are goingto be purpose, product
assortment, pricing, packagingand your pre-launch runway.
Don't you love it?
They all start with P, let'sdive in.
So first thing, what is thepurpose of you adding a
subscription element to yourexisting business?
(01:48):
So obviously part of it is therecurring revenue side.
You gotta love recurringrevenue.
Like that is the big thing as abusiness owner with
subscriptions.
So you're going to move moreproduct, you're going to have
easier ways to project thatrevenue because it is recurring
and it's going to renew on aregular basis.
But what is the purpose foryour customer?
(02:09):
Like, what pain point are yousolving for them by adding a
subscription?
Maybe you are a product thatwill need replenishment and so
you're creating convenience,you're encouraging them to use
the product to run out ofproduct and they're going to get
(02:30):
that new replenishment on aregular basis.
You're kind of creating thisconvenience factor for your
customers.
Maybe the purpose of you addinga subscription is more of
building on something month overmonth.
So say that you're helping themcreate a kit of sorts and each
month you're giving them alittle bit more of the kit.
That's another reason, anotherpurpose behind adding a
subscription.
Maybe you are helping themexperience growth, so they're
(02:53):
going to go through thistransformation as they get your
products month after month.
So think about that and maybegrab a piece of paper and a pen
and write down purpose and thenbrainstorm what is the driving
factor beyond the revenue sideof it?
But what's the purpose for thecustomer?
Number two product assortment.
(03:14):
You need to think about whatproducts are you going to put in
there.
Are they existing products thatyou have?
Are they going to be newproducts?
For example, I have asubscription to Oats Overnight.
It is an easy-to-usesingle-serve oats food product.
When I first purchased, I gotto pick out all my flavors and
(03:36):
then I got a blender bottle, sothat's how you make it.
So it's a really greatexperience.
You get all the flavors.
You can change them out monthafter month.
But the cool thing here is theygive me every single
subscription a product indevelopment, so it's a new
flavor that they're testing itout.
They might not have perfectedthe flavor and they give this to
(03:58):
us as subscribers so that wecan give them feedback and help
them make decisions, help themmake it better, and I think it's
such a cool concept.
So for your product assortment,are you going to offer existing
products, new products, letthem try products in development
?
It's just this way to createalmost a VIP experience.
(04:19):
You could give your newsubscribers products they can't
get anywhere else, or maybe theyget first access to those new
products.
So think about what productsyou're going to put in there,
how many you're going to put inthere.
Oftentimes we see somewherebetween like four to six or four
to seven products in surprisestyle boxes.
(04:40):
But if you are a replenishmentstyle box, that's going to be
based off of how often they needthe product.
So, for example, oats overnightI get 16 servings in my
subscription, so I eat it aboutevery other day for breakfast
and by the end of one month I'mready for my next box to show up
(05:00):
.
So you got to think about howmany items that you need or want
to put in there and whatcategories you're going to put
in there.
So again, pen and paper, writedown ideas of what products
you're going to put in there,what type of categories and
think back to that purpose.
What products do you need toput in there, based off of the
purpose for your customer?
(05:21):
The next thing I want you tothink about is pricing.
So what price point do you wantto put this at?
Now I'll make sure that I putthe link in the show notes.
We have a handy calculator thatcan help you determine a range
for your price point.
You're going to put in somebasic things of what you're
going to spend on your products,what it costs for packaging
which we're going to talk aboutin a minute here what it costs
(05:42):
for postage, things like thatand what you want your profit
margin to be.
Typically, we recommendshooting for that 30% to 50%
profit margin and as an alreadyestablished business owner
that's adding this to the mix,adding this as a new offer that
profit margin might be easierfor you to get because you
already have establishedrelationships with vendors.
You already have some of thisstuff lined up, so now you might
(06:06):
just be ordering more tofulfill those subscription
orders.
So I'll make sure that I putthat link to the calculator that
will help you figure out yourpricing in there.
But as we're talking aboutpricing and product assortment.
This is a great time to surveyyour audience, too.
You can share with your emaillist or even just your VIP
customers maybe those people whospend the most money.
(06:27):
Ask them, maybe, jump on aphone call with them or send
them a quick survey that letsthem in on this secret that
you're thinking about starting asubscription for your business
and you would like theirfeedback.
What would they like to see init, what would their
expectations and what are theirideas about it?
You could give them some pricepoint ideas and let them provide
(06:47):
feedback.
It is such a great opportunityto lean into your existing
audience to help guide this, andthey're going to already be
primed to be your foundingmembers of the subscription.
All right, we've talked aboutpurpose, products and pricing.
Now let's move on to packaging.
This is the moment where youcan get super creative, or you
(07:09):
can just use what you alreadyhave.
There's no wrong answer here.
I think that there's anopportunity to make your
packaging stand out from otherpackaging.
Maybe that is a new box, maybethat is a new mailer, depending
on what you're sending.
Can you send it in a polymailer or a bubble mailer, or
maybe you just use your existingpackaging but you add a special
(07:30):
sticker or some special brandedtape.
Now, we love Sticker Mule forthat type of thing.
I can make sure that we put ourreferral link in the show notes
.
The referral link gives you aspecial offer.
It's a $10 credit if you are anew Sticker Mule client, so it's
super cool.
But you could easily put like aVIP sticker or like some sort
(07:51):
of differentiator, not only sothat your customer sees it and
is excited about it, but alsofrom a fulfillment perspective.
So your workers or you, ifyou're packing and shipping
these subscriptions, so that youcan differentiate and you don't
mess up the fulfillment of it,so packaging, write that down on
(08:11):
your paper.
Are you going to use somethingnew, something existing, or are
you just going to give theexisting thing a little flair?
You know, a new little stickeror something?
And the last thing I want you toconsider if you're adding a
subscription to your existingbusiness is the pre-launch
runway.
You already have an existingemail list.
(08:33):
Most likely I want you tocontinue to grow it.
But let that email list, letyour social media followers also
in on the secret that thissomething big is coming.
You can start hinting at it.
You can start sharing a spoileralert here or there.
You can ask them even to opt into be notified when this
(08:56):
launches.
There's so many things that youcan do, but I don't recommend
that you come up with yoursubscription idea and launch it
the next day without nurturingthat audience and getting them
excited, primed to be thosefirst founding members of the
subscription.
So I want you to think aboutthat and at least do two weeks
(09:18):
Now.
In best case scenario, youwould do it a little longer.
You would have that pre-launchrunway maybe 30, 45, 60 days to
really give yourself theopportunity to grow the list,
nurture the list and to get allyour ducks in a row in the back
end.
You're going to have to addthis to your website and if
(09:39):
you're on Shopify, you can use aShopify app to add the
recurring cart feature.
We love the app called Appstool.
It's great value for what theygive you for the money, so I
highly recommend that one.
Or you can add Subly to yourexisting website.
There's all kinds of differentways that you can do this.
So that's another episode.
(10:01):
We've talked about software inthe past, so you can refer to
one of those episodes if you arescratching your head thinking
about okay, how do I add this tomy website?
But today's episode is morefocused around the big picture
vision and the offer that youare going to have, like, what's
going to be in the box?
How much is it going to costAll those things?
Okay, that was a lightning fastround, I know, but let's recap.
(10:25):
So we talked about purpose.
What is the purpose for yourcustomer?
Are you creating convenience?
Are you helping them experiencegrowth in a transformation?
Are you building upon it monthover month?
Number two product assortment.
Are you using existing productsor new products?
How many are you going toinclude and what categories are
you going to include?
Number three pricing.
(10:46):
What price point are you goingto launch your new subscription
offer at?
Number four packaging.
Are you using existingpackaging, new packaging or just
kind of upgrading your existingpackaging with some flair?
And number five pre-launchrunway making sure that your
(11:07):
customers are excited and primedto buy when you launch.
Okay, that was a quick episode.
Hopefully it was helpful.
Again, this one was for thepeople who have an existing
product-based business and theyjust want to add a subscription
element to it.
It's low-hanging fruit.
Not only is it a great way togrow your revenue on a automatic
(11:30):
basis that recurring side of it.
But it's also another reallygreat way to serve your audience
and meet them where they areand create convenience and
transformation.
So if you're an existingbusiness and you want to learn
more about adding a subscriptionoffer, then drop us a message
(11:51):
in the DMs.
You can reach us on Instagramat SubscriptionBoxBasics, or you
can reach us via email atsupport at
SubscriptionBoxBasicscom.
We would love to help guide youon that journey of adding a
subscription to your business.
Thanks for listening today andwe'll see you in the next
episode.
Bye.
So you want to launch a subscription box and don't
know where to start?
Girl, you are in the rightplace.
I'm Julie Ball and I'm ReneeGonzalez, your host here at
Subscription Box Basics, apodcast for new and aspiring
subscription box entrepreneurswanting to avoid overwhelm.
So grab a coffee, some pen andpaper and let's have some fun.
(00:21):
Hey everybody, and welcome backto Subscription Box Basics, the
podcast.
This is Julie Ball, and this isan episode for existing business
owners that want to add asubscription element to their
business.
It's such a smart move and it'slow-hanging fruit, and so
that's what we're going to betalking about today.
If this is you, then you're ina good spot because you already
(00:45):
have an existing business.
You likely already have anemail list, you already have
followers and a website Allthese things that you did early
on to start your business.
They're already done, so itputs you in a really good spot.
Now, that's not to discouragepeople from starting a
subscription box from scratch.
(01:05):
I'm just talking to a littlebit different audience today and
letting you know that this isgoing to be much easier for you,
as an existing business, to addthis as a new stream of revenue
, so I'm trying to make thissuper simple for you so that you
can take action right away, andso I've narrowed it down to
five things that I want you toconsider when you are thinking
(01:27):
about adding a subscription toyour existing business.
So those five things are goingto be purpose, product
assortment, pricing, packagingand your pre-launch runway.
Don't you love it?
They all start with P, let'sdive in.
So first thing, what is thepurpose of you adding a
subscription element to yourexisting business?
(01:48):
So obviously part of it is therecurring revenue side.
You gotta love recurringrevenue.
Like that is the big thing as abusiness owner with
subscriptions.
So you're going to move moreproduct, you're going to have
easier ways to project thatrevenue because it is recurring
and it's going to renew on aregular basis.
But what is the purpose foryour customer?
(02:09):
Like, what pain point are yousolving for them by adding a
subscription?
Maybe you are a product thatwill need replenishment and so
you're creating convenience,you're encouraging them to use
the product to run out ofproduct and they're going to get
(02:30):
that new replenishment on aregular basis.
You're kind of creating thisconvenience factor for your
customers.
Maybe the purpose of you addinga subscription is more of
building on something month overmonth.
So say that you're helping themcreate a kit of sorts and each
month you're giving them alittle bit more of the kit.
That's another reason, anotherpurpose behind adding a
subscription.
Maybe you are helping themexperience growth, so they're
(02:53):
going to go through thistransformation as they get your
products month after month.
So think about that and maybegrab a piece of paper and a pen
and write down purpose and thenbrainstorm what is the driving
factor beyond the revenue sideof it?
But what's the purpose for thecustomer?
Number two product assortment.
(03:14):
You need to think about whatproducts are you going to put in
there.
Are they existing products thatyou have?
Are they going to be newproducts?
For example, I have asubscription to Oats Overnight.
It is an easy-to-usesingle-serve oats food product.
When I first purchased, I gotto pick out all my flavors and
(03:36):
then I got a blender bottle, sothat's how you make it.
So it's a really greatexperience.
You get all the flavors.
You can change them out monthafter month.
But the cool thing here is theygive me every single
subscription a product indevelopment, so it's a new
flavor that they're testing itout.
They might not have perfectedthe flavor and they give this to
(03:58):
us as subscribers so that wecan give them feedback and help
them make decisions, help themmake it better, and I think it's
such a cool concept.
So for your product assortment,are you going to offer existing
products, new products, letthem try products in development
?
It's just this way to createalmost a VIP experience.
(04:19):
You could give your newsubscribers products they can't
get anywhere else, or maybe theyget first access to those new
products.
So think about what productsyou're going to put in there,
how many you're going to put inthere.
Oftentimes we see somewherebetween like four to six or four
to seven products in surprisestyle boxes.
(04:40):
But if you are a replenishmentstyle box, that's going to be
based off of how often they needthe product.
So, for example, oats overnightI get 16 servings in my
subscription, so I eat it aboutevery other day for breakfast
and by the end of one month I'mready for my next box to show up
(05:00):
.
So you got to think about howmany items that you need or want
to put in there and whatcategories you're going to put
in there.
So again, pen and paper, writedown ideas of what products
you're going to put in there,what type of categories and
think back to that purpose.
What products do you need toput in there, based off of the
purpose for your customer?
(05:21):
The next thing I want you tothink about is pricing.
So what price point do you wantto put this at?
Now I'll make sure that I putthe link in the show notes.
We have a handy calculator thatcan help you determine a range
for your price point.
You're going to put in somebasic things of what you're
going to spend on your products,what it costs for packaging
which we're going to talk aboutin a minute here what it costs
(05:42):
for postage, things like thatand what you want your profit
margin to be.
Typically, we recommendshooting for that 30% to 50%
profit margin and as an alreadyestablished business owner
that's adding this to the mix,adding this as a new offer that
profit margin might be easierfor you to get because you
already have establishedrelationships with vendors.
You already have some of thisstuff lined up, so now you might
(06:06):
just be ordering more tofulfill those subscription
orders.
So I'll make sure that I putthat link to the calculator that
will help you figure out yourpricing in there.
But as we're talking aboutpricing and product assortment.
This is a great time to surveyyour audience, too.
You can share with your emaillist or even just your VIP
customers maybe those people whospend the most money.
(06:27):
Ask them, maybe, jump on aphone call with them or send
them a quick survey that letsthem in on this secret that
you're thinking about starting asubscription for your business
and you would like theirfeedback.
What would they like to see init, what would their
expectations and what are theirideas about it?
You could give them some pricepoint ideas and let them provide
(06:47):
feedback.
It is such a great opportunityto lean into your existing
audience to help guide this, andthey're going to already be
primed to be your foundingmembers of the subscription.
All right, we've talked aboutpurpose, products and pricing.
Now let's move on to packaging.
This is the moment where youcan get super creative, or you
(07:09):
can just use what you alreadyhave.
There's no wrong answer here.
I think that there's anopportunity to make your
packaging stand out from otherpackaging.
Maybe that is a new box, maybethat is a new mailer, depending
on what you're sending.
Can you send it in a polymailer or a bubble mailer, or
maybe you just use your existingpackaging but you add a special
(07:30):
sticker or some special brandedtape.
Now, we love Sticker Mule forthat type of thing.
I can make sure that we put ourreferral link in the show notes
.
The referral link gives you aspecial offer.
It's a $10 credit if you are anew Sticker Mule client, so it's
super cool.
But you could easily put like aVIP sticker or like some sort
(07:51):
of differentiator, not only sothat your customer sees it and
is excited about it, but alsofrom a fulfillment perspective.
So your workers or you, ifyou're packing and shipping
these subscriptions, so that youcan differentiate and you don't
mess up the fulfillment of it,so packaging, write that down on
(08:11):
your paper.
Are you going to use somethingnew, something existing, or are
you just going to give theexisting thing a little flair?
You know, a new little stickeror something?
And the last thing I want you toconsider if you're adding a
subscription to your existingbusiness is the pre-launch
runway.
You already have an existingemail list.
(08:33):
Most likely I want you tocontinue to grow it.
But let that email list, letyour social media followers also
in on the secret that thissomething big is coming.
You can start hinting at it.
You can start sharing a spoileralert here or there.
You can ask them even to opt into be notified when this
(08:56):
launches.
There's so many things that youcan do, but I don't recommend
that you come up with yoursubscription idea and launch it
the next day without nurturingthat audience and getting them
excited, primed to be thosefirst founding members of the
subscription.
So I want you to think aboutthat and at least do two weeks
(09:18):
Now.
In best case scenario, youwould do it a little longer.
You would have that pre-launchrunway maybe 30, 45, 60 days to
really give yourself theopportunity to grow the list,
nurture the list and to get allyour ducks in a row in the back
end.
You're going to have to addthis to your website and if
(09:39):
you're on Shopify, you can use aShopify app to add the
recurring cart feature.
We love the app called Appstool.
It's great value for what theygive you for the money, so I
highly recommend that one.
Or you can add Subly to yourexisting website.
There's all kinds of differentways that you can do this.
So that's another episode.
(10:01):
We've talked about software inthe past, so you can refer to
one of those episodes if you arescratching your head thinking
about okay, how do I add this tomy website?
But today's episode is morefocused around the big picture
vision and the offer that youare going to have, like, what's
going to be in the box?
How much is it going to costAll those things?
Okay, that was a lightning fastround, I know, but let's recap.
(10:25):
So we talked about purpose.
What is the purpose for yourcustomer?
Are you creating convenience?
Are you helping them experiencegrowth in a transformation?
Are you building upon it monthover month?
Number two product assortment.
Are you using existing productsor new products?
How many are you going toinclude and what categories are
you going to include?
Number three pricing.
(10:46):
What price point are you goingto launch your new subscription
offer at?
Number four packaging.
Are you using existingpackaging, new packaging or just
kind of upgrading your existingpackaging with some flair?
And number five pre-launchrunway making sure that your
(11:07):
customers are excited and primedto buy when you launch.
Okay, that was a quick episode.
Hopefully it was helpful.
Again, this one was for thepeople who have an existing
product-based business and theyjust want to add a subscription
element to it.
It's low-hanging fruit.
Not only is it a great way togrow your revenue on a automatic
(11:30):
basis that recurring side of it.
But it's also another reallygreat way to serve your audience
and meet them where they areand create convenience and
transformation.
So if you're an existingbusiness and you want to learn
more about adding a subscriptionoffer, then drop us a message
(11:51):
in the DMs.
You can reach us on Instagramat SubscriptionBoxBasics, or you
can reach us via email atsupport at
SubscriptionBoxBasicscom.
We would love to help guide youon that journey of adding a
subscription to your business.
Thanks for listening today andwe'll see you in the next
episode.
Bye.
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