The Subscription Box Families Loved, but couldn’t afford
Join me today for another visit to the product graveyard as we talk about the second P in the 4 P’s of marketing. This P is PRICE. And pricing your product or service is NO joke. It’s a learning experience and one that you need to be as flexible as possible on arriving at.
This story is about the most adorable subscription box for kids that parents valued and kids adored. This subscription came out of the heart and desire to create a curriculum that developed character in the home. The boxes were themed around bullying, anxiety, compassion and sharing. Each box was lead by a cartoon buddy who arrived at your door each month full of toys, activities, and a mini magazine narrated by that month’s buddy. All surrounding core character developing lessons.
Parents wanted and valued it.
Kids thought it was the bees knees.
The promotion strategy hit the nail on the head.
It was positioned in all the right places.
And it went to the graveyard.
After months of trying to sell Buddy Box subscriptions it came out that families with that age of children simply couldn’t afford the monthly price. The COGS (cost of goods sold) made it impossible to reduce the cost and make money.
Goodbye Buddy Box.
What can we learn from Buddy Box?
Pricing is a strategy and in order for your product or service to make it in the market you have to hit the price exactly right.
- Are you a value based brand or a premium product?
- Are you a discount brand?
- Do you have a DIRECT sales strategy?
- Do you have a RETAIL or TRADE sales strategy?
- Do you have a combo?
- What is the price your market is willing to pay?
- Get it too high, and they’ll walk away.
- Get it too low, and it devalues your product.
Believe it or not your price is a marketing decision. When’s the last time you visited your pricing strategy in your business?