Are You Charging Enough for Your Subscription Box? | EP 218

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You work hard to curate, pack, and ship your subscription box each month. But when you check your bank account, the numbers don’t add up. Sound familiar?

If you’ve been wondering why you’re selling more boxes but still struggling with cash flow or not paying yourself, it’s time to get serious about your pricing.

The Real Cost of Underpricing Your Subscription Box

So many subscription box owners start out underpricing, and it’s not always intentional. You want to be affordable. You don’t want to scare people away. You tell yourself you’ll raise prices later.

Underpricing is costing you more than you think.

When you forget about packaging, shipping materials, transaction fees, your time, and even damages or reships, your “$10 profit” can quickly become $6… or nothing at all. Month after month, that tight margin leaves you stressed, resentful, and unable to grow.

Take Action: Audit your current price vs. your real total cost per box. Include everything: include tape, inserts, and your time.

A Subscription Box Pricing Strategy That Starts With Profit

Most box owners price from the bottom up. They add up products, tack on shipping, and call it good. But that strategy sets you up to struggle.

Instead, flip it around: start with your margin goals and build your box to fit.

• Minimum gross margin: 45%
• Target gross margin: 60%+

If you charge $50 per box, that means your total cost (products, packaging, shipping, fees, fulfillment) should be no more than $20-$27.50. Once you know your limit, you can source and curate accordingly.

Take Action: Reverse-engineer your price. Decide your profit margin first, then set your product budget.

Hidden Costs That Kill Your Profit Margin

Even if your pricing looks solid, hidden costs can eat away at your profits. Things like:

• Transaction fees (PayPal, Shopify, Stripe)
• Shipping materials (not just postage)
• Software and subscriptions (Klaviyo, Canva, Shopify)
• Labor, including YOURS
• Returns, damages, and inventory overages
• “Small” surprises and freebies
  
  

These add up fast, especially as you grow. If you don’t account for them, your margin disappears.

Take Action: Do a hidden cost audit this week. Write down every recurring business expense and calculate what it costs you per box.

Gross Margin vs. Net Margin: Know the Difference

Your gross margin is what’s left after you fulfill the box. Your net margin is what’s left after running your entire business, including software, marketing, contractors, and more.

If your gross margin looks healthy but your net margin is negative, that’s why your bank account feels tight.

Goals to aim for:

• Gross margin: 60%+
• Net margin: 20–30%

Take Action: Track both numbers monthly. If either one is too low, it’s time to adjust.

If You Need to Raise Your Prices

Realizing your price isn’t sustainable can feel scary. But raising prices doesn’t mean failure, it means leadership.

• Be transparent with your subscribers about the reason for the increase.
• Give them 30–45 days’ notice.
• Decide if you’ll grandfather in current subscribers.
• Consider a tiered option if needed.

Yes, you may lose a few subscribers. But the ones who stay will actually be profitable, and that’s how you build a business that lasts.

Profitable businesses don’t just change your life. They make it possible for you to keep serving your subscribers for years to come.

Take Action: Choose your new price based on margin goals, set an effective date, and start your communication plan.

Take Action: Download the Box Budget Worksheet

You didn’t start your subscription box to break even. You started it to make an impact, create income, and build freedom. But that only happens if your pricing supports your profit. 

Download the free Box Budget Worksheet and run your numbers today. This tool makes it simple to plug in your costs, your price, and see exactly where you stand.

In this episode of the Launch Your Box Podcast, I’m walking you through the real cost of underpricing, how to set profit margin goals that actually work, and what to do if you need to raise your prices. 

Download the Box Budget Worksheet here