Hi guys,
I wonder if you might be able to give me some guidance on a subscription gift box model.
Currently our company send gift hampers all over the world. They contain chocolate, sweets, crisps, gift items etc. Our price range is between €49.95 - €59.95 + shipping
We’ve had a lot of requests from customers for a subscription box so that people can have a box sent to them each month. As I got into the research, it started to get a little complex when looking at pricing models.
In terms of gift hampers themselves, what kind of price difference should we be looking at between a one off retail box and say a quarterly, 6 month and 12 month subscription? I understand that there are different costs related to acquisition etc. but any advice on that would be excellent.
The other important area that we’re finding difficult to work around is the shipping. The majority of our gift hampers are exported around the world so there is always a cost to the shipping for customers. We use DHL and they are very efficient but we pay a premium for that. We usually absorb a percentage of the cost into our margin on the retail boxes but I’m wondering, for a subscription box, would we do the same and charge a delivery fee for each box or is it something we would need to absorb and add into the overall price of the subscription?
I would assume the profit margin would be smaller, per box on a 12 month subscription but would you guys have any advice on a standard profit margin per box across different subscriptions?
Any advice on the above would be much appreciated.
Best wishes