Hey y’all, it’s time for the next Makers Mean Business Podcast summary, this time we’re talking all about growing a subscription box business. What is up you guys, it is Parker Stelly and we got a chance to catch up with our friend Sarah Williams, the CEO of Framed!
Many of you know that we’ve got our own monthly wreath supply subscription boxes over at DecoExchange. We hung out during our Mastermind Event and she gave us some incredible feedback that helped us grow our subscriptions to 1500 members!
Makers Mean Business Podcast Ep 3: Growing a Subscription Box Business
First things first, what’s the benefit of incorporating subscription boxes in your business plan?
The nice thing about subscription boxes you guys is it’s recurring revenue. It’s a fairly predictable revenue stream. There’s a few factors that are essential to keeping the profit consistent though. You want to reduce the likelihood of cancellations.
- Have a good product.
- Serve your customer.
So, I mean, it’s really just a huge asset to your business. subscription services in general are really popular right now. If you can somehow figure out a way to work that into your business, it will definitely work out to your advantage.
What 3 Things Did We Struggle With Managing a Subscription Box Business
You’ll hear the full story in episode 3, but the reality is we went for 1200 subscriptions to 400 because first, we weren’t paying any attention to it.
The second reason was we just didn’t have the bandwidth with everything that was going on to juggle doing that and our other business.
It really just took it took a lot of planning and it took a lot of manpower that we didn’t have at the time to keep doing that every month over and over again.
Finally, space played a big factor.
What was the Solution?
Having clear processes in place made it possible to scale to 1500 subscription boxes.
The subscription boxes are perfect for our ideal customer. They need multiple items to make the whole. When you can put that all in a package and make it super convenient for the customer, that’s a win every single time.
We’re making it easy for them to purchase multiple things. And they don’t have to think about what they need because it’s all put together for them.
Is the Profit Worth it on a Subscription Box Model?
Once you start to scale your subscription box, all that time and labor is such a small portion of the profitability of the box. And if you’re not at least 30% profitable, you shouldn’t be doing but doing it but you always want to start to strive for 50 and 60% profitability on any subscription box.
Y’all this was such a great interview, definitely listen to the whole episode. Sarah dives into profit and processes of running a business with subscription boxes.
Listen to the full episode below:
Want to learn more? Join Sarah William’s waitlist for Launch Your Box now!