Subscription pricing for products or services is becoming far more common today. Subscription pricing can be used to allow customers access to restricted information on websites, obtain products on a regular basis, or use software. For today’s business owners, subscription pricing offers a ton of benefits that might make it worthwhile to try out. Some of the benefits include the following.
Attracts More Customers
When something is expensive, many customers are going to pass because they can’t afford the full amount at once. They may not be willing or able to save up the money to purchase the product or service. With subscription pricing, they only have to pay a small amount each period, which means it’s far more affordable. This lets the business charge a higher amount but ensures the product or service is accessible to far more people, so it leads to higher sales.
Creates Recurring Revenue
When customers pay a fixed amount each period, the business enjoys recurring revenue. Every month, the business gets money from the same purchase instead of getting money just one time for each product or service. Depending on the overall price and the subscription price, when the customer pays the subscription for a long enough period of time, the business also makes more money than they would if the customer purchased a product or service using a one-time payment.
Easy to Offer Trial Periods
Trial periods can lead to more sales because they reduce the chance of someone walking away because they’re afraid they will waste money by buying the product or service. Instead, with a trial period, they have the chance to check it out and make sure it’s what they’re looking for. With a full purchase, it can be difficult to offer a trial period. With subscription pricing, however, this is easy to do and can help encourage more people to become customers.
If you’re ready to give subscription pricing a try for your business, make sure you’re using a payment platform that can handle it. Take a look at BlueSnap now to learn more about how easy it is to set up subscription pricing and to see what it can do for your business.