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A 3-Step Guide to Building a Subscription Model Business

Today, to say that the subscription business model is booming would be a complete understatement. Thanks to the fact that the average consumer constantly seeks more value in their purchases and how subscription models do exactly that, businesses like Netflix, Masterclass, and Manscaped have thrived. Over the years, identical levels of success have been replicated and built upon by hundreds of companies that are now rising to the top of their respective industries.

After reading about the success stories of subscription businesses in articles and web posts, you’re probably convinced that your step to financial freedom starts with your own company. With your resignation letter drafted and a bit of money saved up, you might be thinking of starting on your new journey tomorrow. Yet, getting started isn’t as simple as you might think.

Fortunately, we’ve got you covered with this comprehensive guide to everything you need to know about starting and growing a successful subscription model business in 2021.

A step-by-step guide worth following 

The level of success that comes with subscription boxes is no fluke. When successfully executed, they monetize the joy of receiving a curated box of products suited to a recipient’s tastes and preferences. 

Although anyone can string a box of items together and pass it along to customers on a subscription basis, the fact is that there are many factors to consider when you want to be successful. However, getting started and striving for success is not as complicated or seemingly impossible as you may think because following these proven steps always leads to desirable results: 

Step #1: Start researching

With almost every kind of item and product type passing as something that can be offered on a subscription basis, it’s important to select an offering bound to get you the best results, which is where research comes in.

It may sound overplayed, but the value of research presents itself when you get into subscription-based products because of how many key details and important points are needed for a successful attempt. Through the help of this effective practice, you’ll be able to answer different types of questions, such as: 

  • “What niche can prove to be the most valuable to get in?”
  • “Which of the products that I sell will be best suited towards my market’s demands?”
  • “How many products should I stock up on?”
  • “What do my competitors lack so that I can capitalize on it?”
  • “How can I present my products so that they come in the most attractive and marketable form possible?” 

Step #2: Source your products out

After doing the necessary research, it’s time to take care of your first tangible step towards capitalizing on a subscription business model by stocking up on the actual products that you’re going to package and sell. 

When selecting products for your subscription boxes, the name of the game is wholesale. This means that your best chances of increasing your profit margins while keeping your subscriptions affordable and maintaining quality means looking over all potential suppliers. Typically, such a step requires looking at possible avenues in the form of small online retailers, local retailers, manufacturers, and wholesale websites (such as Alibaba). 

Besides outsourcing your products, you’ll also want to think about the packing you’ll be selling to your subscription business’s customers since personalization goes a long way for sales. In fact, investing in amazing custom containers from Carousel Container will help you go the extra mile needed for more sales and happier customers without eating up a large chunk of your budget! 

Step #3: Create a pricing model that works

One thing anyone trying to dabble into a subscription model business should know is that no matter how great or amazing a product option may be, it’s never going to sell if it’s not priced right. 

During this step, you’re much better off considering the prices set by your competitors, as this will help you set your benchmark more accurately (especially if you’re going to use a penetration pricing strategy). By ensuring that your pricing plan covers your costs from end to end, leaves you with a good profit margin, and remains attractive for your customers, you’ll surely have a hit in the making! 


Jumping headfirst into a subscription business model will always prove to be a fulfilling effort because of the opportunities it provides and its overall approachability. By taking the time to follow the three steps mentioned above before launching your actual product and service, you’ll be able to hit the ground running in no time! 

If you’re looking for creative packaging in the United States for your subscription model business, Carousel Containers has got you covered with all kinds of unique box packaging options that will make your product stand out. Get in touch with us today to learn more about how we can help!

63 thoughts on “A 3-Step Guide to Building a Subscription Model Business”

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