Competing with Big Subscription Box CompaniesJan 18, 2021
A question was asked inside my Launch Your Box membership this week that took on a whole discussion, and I realized how many people had similar feelings around this question. "How do you compete with big subscription box companies like Fab Fit Fun?"
I know you see them. They pack their boxes with hundreds of dollars worth of stuff and sell it for $29. You feel discouraged, and you give up before you ever get started. Most of the time, these big box companies are getting items for free or super cheap. As a small business owner, we have to purchase or manufacture all our goods for our box. That all comes with a cost. So how do we compete with them?
The answer to this question, in the most simplistic terms, is you don't. But more importantly, why would you want to?
"Comparison will be the thief of your dreams."
Stop comparing yourself to these big box companies. Start thinking about how you can be different from them. Have you ever read the comments on the ads of those big box companies?? Read them...they mostly talk about bad experiences, bad reviews, and no connection.
Have you ever looked at their social media pages? They have over a million followers and have no more likes, shares, or comments than those with a few thousand followers. Why? Because they are buying their customers through their ads.
There is no connection. There is no sense of belonging. There is no human interaction with people on their social media accounts. Ask yourself how you can provide a better experience and more of a connection with your subscriber than they do.
You can read more about creating a connection with your ideal customer HERE.
"It's not about the money, it's about the experience you provide."
I want you to think about what it takes to have tens of thousands of subscribers. The overhead alone is enough to make me cringe. Then there are all the employees and logistics that come with it. It's a lot. Some people have big dreams like that, but so many others just want enough to live comfortably. So let's talk about what is enough and what feels like success to YOU.
As an e-commerce seller, we go through a roller coaster of highs and lows from day to day and month to month. But a subscription box has the ability to really level that out for the business owner.
I call it the "feast or famine" mentality. In any given month, we can either feast or famine off our sales. It's hard. The ups and downs are not only emotionally taxing, but it's also a financial worry.
Building in a subscription box to your business has the ability to even out the highs and lows. It's a reliable, predictable income that can strengthen and sustain your business.
So when we talk about what success looks like to you, I want you to think about how many subscribers you would need to cover your business's fixed expenses each month. These expenses would include rent, utilities, payroll, software and equipment costs, etc.
This number should be your first goal. My number was 100 when I first started. If I had 100 subscribers, I would be able to pay all my fixed expenses, plus give myself a paycheck regularly. Then, anything else I sold for the month was a bonus, and I didn't have to constantly worry about my business and my bank account.
What happened?...I hit that goal number in month 3 of launching my subscription box!
I kept working it and growing and now have over 2700 monthly subscribers, which has allowed me to hire more people, get a larger building, live more comfortably, and keep dreaming bigger.
Do I have dreams of being like these big box companies? No. I love the fact that I get to be a part of every one of these boxes that leave my building. I love that I know my customers. I'm not chasing a dream I don't want. I have my dreams, and I want you to as well.
If every time you see a competitor in your social media feed and it makes you feel bad about yourself or your business...unfollow them.
You can hear what I have to say about competing with big subscription box companies on my Facebook page.
Stay in your lane.
Stop putting it off.
Stop waiting for the "right" time.
Start building what can become an amazing business for yourself and quit comparing yourself to others.
JOIN SARAH'S NEWSLETTER
Learn more about how to start and grow your own subscription box business! Subscribe to get our latest content by email.