The new subscription rates will mean a price increase for many, but the company has detailed several changes aimed at elevating the customer experience, including personalization and loyalty points.
Birchbox is evolving it’s $10 flat fee pricing to a tiered pricing structure, effective at the end of this month. Katia Beauchamp, Birchbox Co-Founder and CEO, shared the news about the change, as well as the reasoning behind it on the company’s blog.
“Behind the scenes, we’ve continued to come up with exciting ways to build on [our momentum], but our $10 price point was holding us back,” she wrote. “We’ve been limited in what we could offer because—frankly—our cost of doing business has increased. The USPS has increased shipping rates by double digits each year, just to give you one example.”
This is the first time the company will be elevating prices since its debut in 2010. With the new structure, pricing will range from $10 to $15 per month, depending on when a user joined, tier subscription type (monthly, six-month, etc.), and their status in the company’s loyalty program. Breaking that down, existing subscribers’ monthly fee will be upped to $13, and new subscribers who sign up after March 25 will be charged $15 per month if they choose a month-to-month billing plan, or $13 a month if they subscribe for a full year. Only members of the loyalty program, those who spend more than $300 per year, are eligible to lock in the current $10 per month rate.
Katia noted that the increase in pricing was not designed to improve the company’s bottom line, but to help elevate customer experiences. To that end, she shared several upcoming changes in the works, including curated boxes, higher-value samples, faster shipping and an improved algorithm to offer better personalization.
“We are going to raise the bar every month and make sure it’s more than worthy of the extra dollars you’re paying,” she said.
Birchbox will also debut a new program, Swap for Points, in June, allowing customers the option to skip a month box and convert that month’s subscription dollars into loyalty points to use towards full-size products.