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Loop SubscriptionsBFCM Encyclopedia

Box Tiers

Grow the saving with the size of the box instead of cutting the renewal price deeper.

Topic: Pricing & Discounts

The takeaway

When a deeper first-order discount would not clear your costs, move the saving into a bigger box. Offer three box sizes where the percentage saving rises with the number of items, badge the largest as best value, and let subscribers swap contents at every renewal. The saving rides the box, so the renewal price stays where your margin needs it.

An example

Illustrative example: items cost the shopper $15 each and cost you $6 each.

BoxList priceSavingSubscriber paysContribution per order
4 items$6010%$54$30
6 items$9020%$72$36
8 items — best value$12030%$84$36

Compare a flat 40% off the 4-item box: the shopper pays $36 and contribution falls to $12. The 8-item tier gives the shopper a bigger headline saving, raises order value by $48, and still leaves three times the contribution.

Put it into practice

  1. Choose the products and the unit economics. List the items eligible for the box, the price per item and your cost per item. Decide the three box sizes; the largest should match what a subscriber can use in one delivery cycle, not more.
  2. Set the saving per tier. Work out the percentage at each size so that contribution per order holds or rises as the box grows, as in the example. If a tier's contribution drops below the smaller box, reduce its saving.
  3. Build the tiers in the bundle. Create the build-a-box with the three sizes and the discount for each. [confirm with product: where tier-level discounts are set and whether a badge can be attached to one tier.] Mark the largest tier as best value.
  4. Allow swaps at renewal. Keep every item swappable from the portal so the box stays useful after the first delivery. The tier and its saving should hold when contents change.
  5. Test the full path. Place a test order for each tier. Check the cart shows contents and price correctly, the renewal price matches the tier, and a swap in the portal keeps the saving.

Watch out for

  • A tier saving that outruns margin. A 30% saving on a box with thin per-item margin can cost more than the flat discount it was meant to avoid.
  • A largest box bigger than the cadence. Subscribers stockpile, then skip or cancel at order two or three.
  • Locked contents. If the box cannot change, the second delivery is the first unwanted one.

Measure the result

Track average order value and tier mix for BFCM subscribers, and the skip rate on the largest tier at orders two and three. Review after the first renewal cycle. A high skip rate on the largest tier means the box is bigger than consumption; shorten the cadence or reduce the size.

Related entries: Step-Down Discount · Hero Widget · Inventory & COGS Forecast

Read next

Pricing & DiscountsPricingStep-Down DiscountOffer a stronger first-order incentive, then return to your regular subscription price.
Cohorts & SegmentsCohortsCohort OrderUse last year's cohort retention to decide which plan this year's BFCM offer is built on.
Cyber Week OperationsOperationsInventory & COGS ForecastForecast the renewal stock your BFCM cohort will draw, and confirm the discount still covers your costs.

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