Today, I want to get real with you about the subscription box business. Sure, it’s a thrilling journey filled with surprises and triumphs, but let’s not sugarcoat it – some aspects can be a bit challenging. As a subscription box coach and business mentor, I’m here to shed light on some of the things I don’t particularly like about my subscription box business.
1. Monthly Schedule Hustle
First, having a monthly shipping cycle can be challenging. Balancing inventory, packing, finding new products, and designing the box – all within a tight timeframe – is a real challenge. Especially for small teams like mine, the constant transition from one packing day to planning the next shipment can feel like a never-ending cycle.
2. The Pricey Business
Running a subscription box business can get expensive quickly. Paying the team and acquiring packaging materials for multiple items each month adds up. I have eight items in my main box alone, and when multiplied by subscribers, it’s a substantial investment. I’m working on cutting costs, but it’s a gradual process. If I could start again, I might explore a more digital or drop-shipped model to save on material and labor expenses.
3. Payment Hiccups
Having subscribers on a monthly payment plan is great, but not all payments go through smoothly. Failed payments can throw a wrench in your plans. It’s crucial to be ready for a certain percentage of payments not clearing each month and to have strategies in place to address this issue.
4. Subscriber Roller Coaster
Growing your subscription box means gaining more subscribers than you lose, but it’s not always a smooth ride. Without a solid strategy and a reliable traffic source, the subscriber count can feel like a seesaw. Maintaining steady growth momentum is a challenge, and we’ve faced our fair share of ups and downs.
5. Financial Puzzle
Every subscription box business is unique, and finding advice tailored to your situation is tough. It’s like searching for a needle in a haystack. Balancing the books and understanding financial intricacies can be a solo journey, requiring careful consideration and collaboration with accountants to ensure your numbers work.
The subscription box business isn’t all rainbows and sunshine. But here’s the silver lining – it’s a dynamic adventure that pushes you to learn, adapt, and grow. If you’re thinking about diving in, go in with your eyes wide open, armed with knowledge, and ready to embrace challenges. After all, it’s the hurdles that make the victories all the more sweet.
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