Jhong, I appreciate your thoughts! It’s important for us to look at all aspects of this subject, because it really does hit at the heart of sub boxes. We are passionate about our boxes and our products, as we should be, and these discussions require all sides and opinions.
If I may…
Why does a brand offer their item to a sub box?
1. To win over and gain new customers who then BUY THEIR STUFF AT FULL SIZE, FULL RETAIL SOON AFTERWARDS; or
2. To sell the specific product to the sub box AT A PROFIT.
Now, some brands legit offer full size stuff to sub boxes. But look at 111 skin. IF their inclusion in sub boxes is at little to no profit to them but instead is meant solely to gain new retail customers, it raises a few questions:
Why full size? It takes us forever to go through them, so even if we love it, we won’t need to actually buy it anytime soon. AND even if we love it and eventually go through the whole bottle, how many of us would even try to buy it knowing that the retail is $150-250+?
So here’s the problem. If they were legit, AND thus their motivation was to offer sub box product at their cost or close to it in the name of garnering new customers, then offering said product at full size AND with a high quoted retail price is counterintuitive…the customer can stretch that full size out over months if not a year (hello, vitamin c booster), especially due to the retail. If we love the product and know that it will cost us $150++ to buy another, we can strrrrretch that free bottle for a very long time.
111Skin must know this; they’ve been offering sub box stuff for a year now at least, and not in small quantities. If the product itself is REALLY that valuable (because ingredients), WHY OFFER FULL SIZE? My goodness, a smallish vial of this $250-retail product should do IF the goal of the sub box item is to gain profit from LATER FULL-SIZED PRODUCT SALES. Again, if their goal is to acquire new retail customers, they’d be doing things in the reverse…offering sample sizes to a very elite selection of sub boxes, THEN offering to the sub box customers a discount on any order of their full size product.
I again submit for your consideration that the 111Skin brand’s core business is NOT selling at retail; it is selling to sub boxes. This is their main profit center. And if it’s not, I’d like to see proof…as in accounting proof that they make more NET profit via retail sales than sales to sub boxes, though I wouldn’t be surprised if they have book keeping “evidence” to the contrary.
Having said this, I don’t disparage their products at all. Many people like them and are happy to get them. My concern is this facade that they aren’t profiting directly from their sub box business. They are.
My last question to 111Skin would be: if you were banned from every and all sub boxes for the next, say, 24 months, would your “retail” business keep you afloat? Considering how many of your products have been sent to consumers in the last year or two, you should have won over more than enough new customers that you’re profiting on their purchases alone and sub boxes aren’t your main profit But…
We must remember that this brand not only worked their way into every sub box known to man, but they also sold these sub boxes FULL SIZE products. So most of us have at least one if not several 111Skin products chilling in our cabinets, and we probably didn’t plan to buy (at full or even modestly discounted) any backups just yet.
If they use the sub box placement in the way they should, they should be able to sustain a profitable business WITHOUT sub box inclusions for some time. Heck, if their sub box inclusions actually COST then money, they should be happy to get out of it for a bit and to just enjoy the new customers they’ve gained via their last sub box involvements.
That’s the goal, right? To gain new full price customers? But I suspect that will NOT be the case. They make their profit on sub boxes, pure and simple. Take that highly important sales channel away, and leave them with only their retail sales to survive on, and they’ll be gone shortly.
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