The Surprise Box Model

Subscription Models – The Surprise Box Model

The surprise box model is a subscription model supported by Reepays fixed-price billing model, also called the fixed recurring model. It usually charges at the beginning of the billing cycle, selling a service or product at a fixed price. The subscription business providing the product or service may have different subscription plans. Many subscription businesses will use this kind of model since it’s easy to use, provides continuous and predictable revenue. The customers will never doubt the price of the product, nor what they get for their money. There are low costs of entry for the customers and they will only have to pay a small amount per month. This will make it more convenient to create a subscription since your customers won’t have to pay a large amount at once but a small amount every now and then.  
Examples of the Surprise Box Model
The surprise box subscription model involves shipping a package of goods to your subscribers every month. Your consumers will typically be passionate about the product and, therefore, willing to pay for a new package every month. For example, if your customers are passionate about drinking wine, they can create a monthly subscription with a wine company and receive different kinds of wine each month. Likewise, if they are flower-loving people, they can be sure to receive fresh flowers every month for flower delivering company.  
Who should use this kind of subscription model?
Recognized by subscription businesses that…
  • Provide a product or service with a fixed price.
  • Have passionate consumers, willing to receive new products every month
  • Have the ability to deal with logistics and data when shipping a physical product
 
What to keep in mind when using the Surprise Box Model…
Typical subscription businesses that use the Surprise Box Model are commonly any subscription business, that provides monthly/weekly delivery-of-goods services, whether it’s beauty products, dog food or fresh baked goods. The customers that subscribe to a subscription like this, will normally be excited about getting something different from each package they receive. That’s why it’s important for you to consider how to continually surprise your customers with new products. It’s important that you have the capacity to collect and manage data on your subscribers while being able to customize each experience based on your customers’ preferences. This takes both time and effort but will definitely increase the customer satisfaction and loyalty- if done right. See more about the fixed-price model and other models at Reepay.com