Planning to Start a Subscription Business? Learn From These 5 Companies in the Big Leagues

Subscription Model Business Strategies

Starting any business is intimidating. There’s a lot to learn about the items you’re selling, the market you’re selling to, and how to market your product. However, plenty of other companies have been precisely where you are now: wondering how to bundle and sell items at a low cost. In fact, these industry giants know how to create and maintain a thriving subscription box service!

Let’s take a look at 5 of some of the most popular subscription boxes and why they work.

Bouq Co.: From Shark Tank to Flower Selling Moguls 

Bouq Co. founders John Tabis and Juan Pablo Montufar noticed an issue in the quality of flowers being sold in the industry and the shady marketing tactics online retailers would use. The Bouq Co. delivered farm fresh flowers directly to your door and didn’t hide the price until checkout. Through Montufars’ hydration process, flowers typically lasted 2 to 3 weeks.

Tabis and Montufar rolled out overnight shipping after receiving criticism from Shark Tank that your average consumer typically forgets birthdays and holidays. Now, you can purchase flower delivery for Mother’s Day and still ensure your mother gets her present! Plus, as a subscriber, you get 30% free shipping, flexible delivery days, and beautiful floras! 

Bark Box: Gifts and Treats for our Furry Friend

Over 63 million households own at least one dog in the United States. With that many dog owners, it was easy for founders Carly Strife, Matt Meeker, and Henrik Werdelin to come up with a solution to a problem dog owners didn’t know they had: finding the best toys. BarkBox services over 1 million dogs monthly and can attribute that number to clever marketing. BarkBox uses Instagram to promote their business. With plenty of cute dog photos, well-crafted dog memes, and pictures of happy dog customers, it’s no wonder people choose to follow!

Candy Club: Their Success Speaks for Itself

Who doesn’t love candy? Candy Club founder and CEO Keith Cohn likely asked himself that question when he started a candy subscription service in 2015. While candy doesn’t come in short supply, the variety can sometimes be scarce unless you go to a specialty store. Even then, there’s still the issue of geographic location, shipping costs, or rare snacks.

Candy Club has all of your favorites: gummy bears, chocolate-covered almonds and taffy but adds a unique spin. Plus, the monthly rotation of six 6-ounce candy cups keeps the box exciting and new. Candy Club’s secret isn’t the product: it’s the marketing. Through affiliate marketing, Cand Club has successfully garnered over 50,000 members and counting!

Itpy: Quality Deluxe Cosmetic Samples

YouTube beauty vlogger Michelle Phan started her own subscription service on the back of her already large fanbase and social media following. Their growth model focuses on driving subscriptions through Michelle Phan and other popular beauty Vloggers. However, their collaborative efforts with other beauty companies is what makes this box unique because they feature both small and large makeup brands. They have spent virtually no money on advertising and instead offers mentorship, access to studio space, and a larger platform.

Dollar Shave Club: Cheap, Yet Powerful Razors

While skimming this list, you probably said, “I know this brand,” which is a great sign for their marketing efforts. Dollar Shave Club, created by founder Michael Dublin and Mark Levine, came together over their frustration over the cost of razor blades, and who could blame them? With over 2 billion tossed razor blades per year in the U.S. alone, that cost really starts to add up.

Although they started their company in 2011, they didn’t see any real growth until March 6, 2012, when their YouTube video entitled “Our Blades Are F***ing Great” went viral, garnering 27 million views as of 2021 and 12,000 subscription orders. Through YouTube advertisements, they’ve continued to see massive success. Plus, their razors are actually “F***ing Great.”