The secret to kick-starting a profitable subscription box business lies in selecting the right products to include in your box. The primary concern should be to choose products that consumers use regularly and that form an important part of their daily routines. The more frequently they use them, the more frequently they will need to be replenished, and the more valuable a subscription service will be.
Keeping all this in mind, there is no doubt that food/drink subscription boxes are a winner from a profitability perspective. People from all backgrounds, genders, and ages will always need delicious, healthy snacks, meals, and treats, after all. However, before you proceed with this exciting new business venture, here are a few guidelines to keep in mind.
Firstly, what is a subscription box business?
Essentially it is a business that operates on a subscription basis where customers sign up to receive a specific bulk order on a weekly, bi-monthly, or monthly basis, while paying a free upfront. A great example of a subscription box business is ZampleBox — a brand that offers customers a monthly subscription box filled with vape juice hand-picked based on each subscriber’s preferences.
How it works
Some subscription services come with a contract, whereas others allow customers to cancel anytime. It can be tempting to attach a contract to your service but remember that this could result in customers hesitating to sign up and checking out your competitors’ offering to be 100% sure they are getting the best possible deal. If you must go this route, it is always wise to offer a one-month ‘trial’ where they can cancel their subscription without incurring any penalties within a certain window of time.
Choosing what to include in your box
So, you know that you want to include food and drink inside your brand’s subscription box. The question now is, what exactly will you include? Chat to friends and family to discover what pain points they may be experiencing. Perhaps they are struggling to make healthy lunches for their children every morning and would love to make the most of a simple, ready-made alternative?
Maybe they don’t have time to cook dinner after work and would be keen to look into pre-made meals? Or maybe they would be interested in a box chock-full of healthy snacks to take along to work each day? You could even target bakers with a delivery box over-flowing with baking supplies and easy-to-follow recipes. The options are practically endless.
Another route to explore is to take specific categories of food or drink and include them in a subscription box. For example, you could offer an organic fruit and vegetable box or treat your customers to a box of different lagers each month.
Be sure to conduct some research into your competition to see if it is worthwhile offering the subscription box that you have in mind in your area, or if another business has already got it covered. Obviously, the profitability of your venture will depend heavily on how unique your offering is and how quickly you are able to grow the demand.