The Benefits of a Subscription Box Business Model

Whether you’re wanting to diversify your revenue streams, increase profit, pivot your business, already an established boutique that would like to add on subscription boxes to your business model or you’re looking to start a standalone subscription business, we are here to tell you the benefits of this business model.

1. Consistent Income 

Unlike other retail businesses, with the subscription model you know what’s coming in. With predictable monthly recurring revenue (MRR), businesses can streamline inventory planning, forecast for future growth and scale. This is a huge positive and creates some peace of mind. 

2. Cash Flow 

With the subscription business model you can actually ask for payment upfront, which is great for cash flow and lower stress wondering what the numbers will look like end of month. 

3. Lower Investment 

With regular, recurring customer payments, you don’t have to invest as much in new customers to keep your business going. Acquiring a new customer can cost 5–10 times more than retaining an existing customer.

4. Loyal Customers 

There’s nothing better in business than loyal customers who know, like and trust you. They tell their friends about you. They rave about you for free. They are extremely loyal, repeat customers—and studies show that repeat customers spend 67% more than new customers. 

If you’re looking to make changes to your business model, want to scale or pivot and you’re a client, learn more about our consulting services where we can take your financial reports and use that data to increase profits and grow your business. learn more about consulting here.