How Much Should I Charge for a Subscription?

How Much Should I Charge for a Subscription?

Hitting the perfect sweet position in your pricing strategy is no mean feat, so it can be costly for your company to pick the wrong price.  The risk of losing money if too little is paid could lead potential customers away from your membership. It would be best if you put time and research into your membership-pricing plan.  You should not overcharge your customers, but you should also use your income to fund your business. After all, you run a corporation, and so you have to make your membership site successful.

It would be great if you found a balance between the cost of growing your business and optimizing what customers pay for your packages when you calculate your subscription rates. If your rates are too little, you may not be able to manage your costs. If you charge too much, clients will compare prices to value and decide to cancel their membership is if they have been able to sign up for the first time.

Besides, of course, setting the ideal pricing strategy for your subscription offerings is something you will need to revisit throughout your entire business life. Consider the following in your scrutiny:

Business Model

You can hope to encounter hundreds, or even thousands, of buyers at a monthly subscription rate if the product is a vital service. More competitors are participating in a broad market so that the pricing must remain competitive.

You would have fewer clients and order a higher subscription price if you are serving a niche market. This type of customer base would demand greater attention and rely more on customer relations management.

Business Expenses

The cost of providing the service to the market is a standard pricing process. You must note that you must include all fixed and variable costs. You must apply the operating costs to the number of clients in the subscription company you choose to retain and maintain. This measure should include all of the company operating costs and overhead.

It would be best if you also remembered CAC – the price it costs to make a potential customer a paying customer. Over time, this essential measure will change and be tracked and priced.


It is best to inform yourself of the competitiveness as a company in winning over customers: search competitors’ goods, strengths, and weaknesses. So, from a customer viewpoint, how do your rivals look?  Also, how do they compare with your product? All this knowledge will help you to position yourself and to identify your reasonable prices.

Value to the Customers

Your clients will not pay for a service they do not believe is valuable. It would help if you also asked your clients what they think is your subscription service’s worth. You probably would underestimate something, but it can be a good starting point.

Alternatively, you can check multiple pricing points for the A/B test to determine which conversion rate is higher. It would be great if you also looked at the lifetime of the consumer. If you think a higher price has a lower conversion rate but a higher lifetime value, that is the better solution.

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