So you are thinking of setting up your own subscription box business but are feeling those pre-game jitters? Will it work? How do I source the products? How do I sell the products? How do I ship the products? Believe us, we feel your pain. Starting out is the hardest step to take but it is this first step that could change your whole life for the better. Luckily for you we are here to help you and hold your hand every step of the way.
Our guide on ‘How to Start A Subscription Box Business’ is a great starting point to build your knowledge, and today we go one step further with a special feature Q&A session with the founder of Agent Ribbit, Courtney Sperlazza. Courtney, gives us a real insight into the challenges and benefits of creating a subscription box business, while giving key advice on how you can set up your own successful Subcom service.
“I started Agent Ribbit because I wanted it for myself. We’re starting to homeschool my 5- and 3-year-old this year, and I was planning out some of our hands-on science activities. I discovered there was a lot of legwork involved – not only finding supplies, but coming up with a concept and a lesson. Then, not every experiment you find on the internet works, so I expected to be testing the experiments once the kids went to bed, then again when we were ready to do them together. I just wanted to buy it all boxed up and done for me. I decided to offer it because the variations I found just seemed to miss the mark in one way or another, and surely others are looking for what I’m looking for, right?”
“I liked the subscription model because there’s an element of surprise. It’s educational, it’s fun, and it’s also a present…to both the parents and the kids! More practically though, signing up eliminates the guessing game and prevents over-ordering. I only order as many supplies as I’ll use.”
“My advice would be to determine what you’re upper limits are. If your model includes sourcing from all mom-and-pop type places (as in specialty foods, etc.), you may find that there’s less wiggle room as far as pricing and mass ordering goes. Choose a product where you see lots of freedom.”
“I threw up a website and started to get some chatter going on Twitter. After that, someone noticed me who mentioned me on a website, which got noticed by a writer from a big tech news source. Agent Ribbit got catapulted into the public eye well before we were ready. But I got it all together and now we’re riding this runaway train!”
“I’m finding that pennies matter! I decided where I wanted my margin and then worked backward. If my box includes more expensive items one month, I’ll just shoot for less expensive (but equally impressive!) experiments next. Then, it all evens out and I don’t shy away from a cool reaction because it’s pricey.”
“I concept the boxes myself and my kids and their buds test them for me. If the projects aren’t awesome, customers will cancel, period. So it’s important that I hit it out of the park, every time.”
“I had some free ad credits and things like that, but I’m finding that publicity from media sources and online influencers gives me the biggest boosts.”
*Note: Subbly and Agent Ribbit first virtually met on Reddit while discussing how being featured on ‘Product Hunt’ can help launch a startup. Check out how Product Hunt can help your subcom business here.
“The initial setup was a challenge. At first, I had to refund a bunch of orders because my recurring billing system was overriding my shipping restrictions, so I was getting orders from all over the world that I couldn’t fill. I resolved this minutes before my first big media feature, thank goodness.”
“Test, test, and test again!”
“I’m a one (wo)man show, so I’m hoping to be at a place where I’m outsourcing a lot of the tasks that aren’t fun for me. The way things are going, I expect it’ll happen!”
“The subscription model has been around forever, and isn’t going anywhere. The milkman was a subscription. Magazines and newspapers have been doing it for decades. Our CSA is a subscription. I’m a subscriber to the internet that I’m using to send my responses to these questions. There’s a little explosion of product boxes at the moment, which will raise the bar for everyone. The most interesting and fun will get to stay, and the lower quality boxes will fade. But I think creators and recipients alike are having a lot of fun with subscription boxes!”
So there you go guys. A real life example of a ‘one (wo)man show’ taking advantage of the subscription commerce industry that is set to explode. A special thanks to Courtney Sperlazza. Check out www.AgentRibbit.com to sign up for kids science kit here and follow @AgentRibbit on Twitter
images via: Hibert.edu, AgentRibbit.com
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