{"id":968,"date":"2017-06-06T16:47:08","date_gmt":"2017-06-06T16:47:08","guid":{"rendered":"https:\/\/www.subbly.co\/blog\/?p=968"},"modified":"2022-05-25T22:09:29","modified_gmt":"2022-05-25T22:09:29","slug":"common-challenges-subscription-business","status":"publish","type":"post","link":"https:\/\/www.subbly.co\/blog\/common-challenges-subscription-business\/","title":{"rendered":"Practical Solutions for Common Challenges in Subscription Business"},"content":{"rendered":"

Once upon a time\u2026<\/span><\/i><\/p>\n

\u2026 in a land far, far away, a small subscription business was born. It steadily grew and bloomed, surrounded by the warmth of its creators, who were bold entrepreneurs. Nothing stood in their way and they all shipped happily ever after!<\/span><\/i><\/p>\n

\"gentle<\/span><\/p>\n

Lucky you, for you have just witnessed the birth of the first subscription business fairy tale! But, as tempting as it may sound, it\u2019s also rather boring, right? Well, it\u2019s time to face reality. It may be challenging, but it will undoubtedly be more exciting than fairy tales.<\/span><\/p>\n

Running a subscription business is a journey filled with of ups and downs. Though some businesses tend to grow at a relatively solid rate, most of them do struggle, especially <\/span>at the beginning<\/span><\/a>. And that is perfectly normal.<\/span><\/p>\n

\"Lego<\/p>\n

Today, we are bearers of some news – \u00a0good news and great news. The good news is that every business challenge has a solution, oftentimes more than one! The great news is – you\u2019re about to discover those solutions to common challenges that one can face in a subscription business. How neat is that?!<\/span><\/p>\n

Most common challenges faced by subscription businesses
\n<\/span><\/h2>\n
    \n
  1. Pricing your offers (subscription boxes\/products)<\/span>
    \n<\/span><\/li>\n
  2. Scaling the fulfillment operation<\/span>
    \n<\/span><\/li>\n
  3. Creating a monthly schedule of operations<\/span>
    \n<\/span><\/li>\n
  4. Creating amazing customer service<\/span><\/li>\n<\/ol>\n

    Surely there are more, smaller everyday challenges every subscription business owner faces, beyond these big ones we are going to explore now. Some of them are well known to non-subscription businesses as well – unexpected obstacles appearing in places you would never expect them to appear, constant gaps between what we know and how it looks in practice, and more.<\/span><\/p>\n

    If there are any other challenges you\u2019d like us to cover, do let us know! Whatever you\u2019re struggling with in developing your business, we\u2019re here for you to provide practical solutions, tips, and advice.<\/span><\/p>\n

    \"giving<\/span><\/p>\n

    Moving on, in this guide we are going to reveal the most common challenges of subscription business, focused mainly on monthly recurring offers (based on subscription boxes, as a main example). <\/span>
    \n<\/span>
    \n<\/span>Next, as these challenges can create serious drawbacks and significantly slow down your progress, our goal is to show you practical solutions to them. Luckily, there are solutions to every one of them, starting from (of course) smart planning and preparation, to financial juggling and time management. <\/span><\/p>\n

    Why are we doing this? So you can relax and avoid those drawbacks. So you can ship happily ever after!<\/span><\/p>\n

    Are you ready?!<\/span><\/p>\n

    \"excited<\/span><\/p>\n


    \nChallenge no. 1 – Pricing<\/span><\/h1>\n

    Is it just us? Or does pricing, funding, and financing in general always tend to cause a headache or painful teeth grinding? It seems that for every entrepreneur, initial idea making and brainstorming is always enjoyable, as well as \u00a0design polishing, branding, prepping everything for a launch – exciting, exciting, exciting! <\/span><\/p>\n

    And then, wicked, wicked money comes in.<\/span><\/p>\n

    The main goal is often to get it all working in the most affordable way imaginable. And there\u2019s nothing wrong with this! Sometimes, it is necessary to optimize (or over-optimize) all the aspects, so you can launch and begin your business altogether.<\/span><\/p>\n

    However, though it is absolutely important to stay within your budget in the beginning, there\u2019s a catch. <\/span><\/p>\n

    A lot of subscription entrepreneurs do not devote enough time to the thing that will literally keep their business running smoothly – the price of their product.<\/span><\/p>\n

    \"businessman<\/span><\/p>\n

    Seems obvious, but it\u2019s a commonly overlooked step. Why does this happen? No, it\u2019s not the doing of a voodoo witch that craves for your business to fail (as far as we know at least). Instead, there are several possible reasons:<\/span>
    \n<\/span><\/p>\n

      \n
    1. Starting a business is a messy journey, to say the least – one can easily get distracted while putting out ongoing fires;<\/span><\/li>\n
    2. Unexpected costs pop up and it\u2019s difficult to consider them all ahead of time;<\/span><\/li>\n
    3. Certain costs are underestimated – a common misstep in both <\/span>product sourcing<\/span><\/a> and shipping operations;<\/span><\/li>\n
    4. Shaping the pricing structure (or even copying it) according to competitors – strikingly similar subscription businesses;<\/span><\/li>\n
    5. Forgetting to leave a backup space in the budget, so important in the case that unexpected spending occurs (and trust us, it always does).<\/span><\/span><\/li>\n<\/ol>\n
      Try Subbly free for 14 days
      \n      Signup & Try Subbly For Free<\/a><\/div>\n

      Overcoming the challenge: Pricing<\/span><\/h2>\n

      In order to get an accurate view of your pricing, make sure that you did the additional investigations. It\u2019s also a fine blend of careful planning, analyzing, and lots of calculations. Some of the ways to do some smart solutions may involve:<\/span><\/p>\n

        \n
      1. Considering all the costs<\/b> – seriously, <\/span>ALL<\/b> the costs possible!<\/span><\/li>\n<\/ol>\n