I can't believe I'm asking 4chan for business advice but here we go, I guess.
I started a subscription box service about 18 months ago. My original intention was to use the subscription model as an advertising vehicle for an online shop. I'd benefit in two ways: 1. because subscription boxes are super popular right now it's really easy to collab with big number bloggers, and 2. since I'm buying a lot of the same shit in bulk I can skip going to the wholesalers and get things directly from importers, bringing my costs down.
Well 1 1/2 fucking years later I have a pretty steady box business--it's not at the top of my category but it's steadily growing and I'm making an okay profit (about $3k net last month). The problem is that the boxes have a terrible fucking margin and more and more I feel like I'm wasting my time. I'm not happy because I'm spending like 80% of my time packing boxes or picking items for boxes or writing stupid product descriptions for boxes, and I'm only making like $5 per box. Sometimes less.
The field I'm in is actually a very high margin business, and the extremely great value that I've provided with the subscription box is the reason that I feel like I'm growing, but I feel like I'm just cycling money and inflating my volume while creating very little actual wealth. Plus, because the boxes take up so much of my fucking time I've basically neglected my online store, which was supposed to be the whole point of starting a box business.
I had a sudden realization today that I am really fucking unhappy with my business but I'm equally scared as I am unhappy. I don't want to lose my current revenue stream but I also feel like what I have going isn't sustainable.
Wat do.
>>1100501
Hire a mexican to pack the boxes, maybe still do the writing since no hable engles or whatever it is. 36k a year puts you above most americans, and you don't even have to suck any boss cock.
If hiring dumb labour to pack the boxes is unattractive, you could try to offer a higher margin box, or sell the business to someone.
>>1100511
Actually you could also offer a higher price but similar margin line of boxes, like a deluxe pack. Your margins will still suck, but you'll be making more net profit per box anyway.
Expand Nigga!
The worst mistake you can make is to sit on your business when it's time to grow. Hire a few people, pay them .25/box or whatever, the rest is all profit for no work. Now you can spend time finding new markets and growing even more.
You're lamenting your good fortune. Go for it!
>>1100541
He'd be paying each person $25 per month at this rate. Even illegals wouldn't do that kind of work.
You're literally buying things, putting them in a box, and sending them to someone else. What value add were you expecting from that?
>>1100501
I was about to start a subscription service OP, how did you deal with distribution?
>>1100501
no idea. enjoy. use that brain!
>>1100501
Is your subscription base growing steadily? If so, hiring someone to pack the boxes seems like the way to go. Even if it's just some high school kids part time as "independent contractors".
Spend that extra time to work on the online store.
But don't spend too much time. If the subscriber base continues to grow and your online store doesn't take off satisfactorily in a suitable amount of time, embrace the new direction your business has taken!
>>1100501
Figure out how to bring your margins up, subscription box services are pretty shitty margins, but here is what I'd do:
>try upselling things.
Look at dollar shave club, they've introduced new products to compliment their current products
>increase prices
Increase your price by like .50 cents on shipping and the box, that's a whole 1 dollar more per box.
>hire someone to pack
10 dollars an hour for 8 hours. Do you have a scheduled shipping date? If you do, you can just pack all the boxes in one day and have a friend or family member pack you the boxes.
HOLY FUCK THIS IS THE THREAD I NEED. IM LITTERALLY LAUNCHING ONE WITH SAME MARGINS IN MARCH!!
OP here. At home now and exhausted. I was having a mini coffee-fueled nervous breakdown earlier. I'm in no state to make any real decisions right now but thanks for the replies.
>>1100700
The things I'm sending tend to be heavy. What works for me is a 9x6x3 box stuffed inside a USPS 2-Day priority flat rate padded envelope (fits *exactly* with virtually no leftover room). They raised the padded envelope flat rate this year to $6.80 but I can send anything as long as it fits inside the envelope and it comes with $50 worth of insurance, plus the shipping is super fast. It only takes 3 days for a package to get delivered to Hawaii, for example.
If you're shipping something lighter, shop around, I know UPS will work with you even if your business is still at a low volume. If you're shipping under 1lb, try USPS 1st Class Parcel mail.
For my online store I stick with USPS. More reliable than UPS or FedEx in my experience, and a lot cheaper. For international orders I usually compare using ShipGooder.
As for boxes/packaging I use Nashville Wraps for pretty things and Pratt Industries for cheap boxes. Stay away from Uline.
Hope that helped.
>>1100787
Why you agianst uline?
>>1100810
Prices aren't great to begin with but their worst offense is their shipping prices. They used to offer a coupon code for free shipping on order over $300 but not in quite some time now. Pennies matter.
>>1102098
Ahh aright makes sense.
>>1102098
We get the lowest uline unit price no matter our quantity and free shipping over 300 without a coupon.
>>1102277
I don't know which products you're buying from them but for most of the shipping materials I use, Uline's lowest unit prices still costs more than other business' lowest unit prices. Also, how are you getting free shipping? I just went to Uline out of curiosity and added $500 worth of poly bags to my cart and they didn't offer free shipping.
