Subscription Service Calculator
Measure the revenue you could generate with your subscription service.
Subscription Calculator
Things To Consider
If you have tiers, it is recommended to use the average subscription cost.
This calculator does not include any cancellations per year.
If your service is international, you might establish different price points.
What is a Subscription Service?
A subscription service is a business model used by companies such as Netflix and Spotify where users pay a monthly or annual subscription fee in return for a service or product. For example, users that pay Netflix each month in return receive access to their catalogue of licensed content through their online platform.
Should I Offer a Free Tier?
Free tiers or trials are great ways to help potential customers get a feel for your product. Nevertheless, even if your marketing is effective, if you resist offering a trial or a modest demo to potential customers, you may lose out on creating a more substantial customer base for your subscription service.
How to Create Subscription Service?
Before developing any business, you need to understand your audience; this also applies to a subscription service. By knowing your audience, you’ll be able to establish pricing, your position in the market, and how to bring in new customers by utilising different marketing mediums. Now, it’s never been easier to set up a subscription service through eCommerce solutions such as WooCommerce and Magento with plugins that give you all the tools you may need. However, before you dig in, prepare a business plan and understand the true potential of your service.
Should I Charge Less Than My Competitors?
The first thought to many is that if you charge less, you will get more customers; this is not true. On the contrary, pricing higher and providing a more comprehensive product can help your product appear more premium, trustable and worthy of the subscription price. For example, let’s say you start a shampoo subscription business. Your main competitor is charging £35 per bottle. Yet, you charge £13. Your pricing is more affordable, and many buyers would opt for your product if everyone knew it’s the same or very similar. However, they don’t. Marketing and pricing a product as more premium gives you a great pull and offers more assurance to a potential customer, even though a product may be just as good as a cheaper alternative. Premium pricing is prominent in many industries, including the alcohol and fashion enterprises.
