The Pros & Cons of a Quarterly Subscription Box | EP 136

Subscribe:  SarahsPodcast.com | Apple Podcast | Spotify | IHeartRadio | Stitcher

“Is it better to have a monthly or quarterly subscription box?” 

This question comes up a lot inside Launch Your Box and on the How to Start a Subscription Box public Facebook page. The truth is, there is no one answer to this question. No right or wrong when it comes to choosing a monthly or quarterly box. There’s only the answer that’s right for you. 

Your answer to whether a monthly or quarterly box is right for you and your business depends on your goals for your business and what is most important to you as a business owner. 

Each model has its benefits and its drawbacks. It’s important to understand both before making a decision about the frequency of your subscription box. 

The pros and cons of a quarterly subscription box:

1. Revenue
• Con - a quarterly subscription model can cause financial strain during the “off” months. 
• Pro - you can typically charge more for a quarterly box, allowing for greater profit and more revenue.
2. Curation/Products  
• Pro - you only have to curate a box four times a year! 
• Pro - your subscriber only gets four boxes a year to consume. This can lead to greater subscriber satisfaction and less churn. 
3. Frequency/Recency 
• Con - lack of engagement. The time between each box can cause a sense of disengagement for subscribers. They’re not getting the constant reminders of something new coming like they do with monthly boxes. 
• Con - not having enough content. It can be very challenging to stretch out the content from one box to last for three months until the next box comes out. Content can get stale. 
4. Time   
• Pro - the monthly grind of curation/fulfillment/customer service is a full-time commitment. A quarterly box allows you the space and freedom to do other things. 

Top cons of a quarterly subscription box:

1. No monthly recurring revenue.
2. Lack of engagement in your community.
3. Lack of content to market and promote your box and brand consistently. 

Top pros of a quarterly subscription box: 

1. Ability to charge more for a quarterly box, increasing the amount of revenue per box. 
2. Only have to curate four boxes a year instead of 12. 
3. Subscribers are less likely to cancel due to inability to consume the box. 
4. You get a break from the curation/fulfillment/customer service cycle. 

We’ve talked about monthly and quarterly boxes and the pros and cons of each. But, there is one other option and it seems to be gaining in popularity: bi-monthly subscription boxes. Bi-monthly boxes are curated and fulfilled every other month. Some subscription box owners and subscribers find this to be just the right balance between a monthly box and a quarterly box. 

Join me for this episode as I talk about why there’s not an easy answer to the question, “Is it better to have a monthly or quarterly subscription box?” and walk you through the pros and cons of each.