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It's all the rage and can get you funding in as little as 8 months (nicely done Frank and Oak).
Monthly Subscriptions: Whatever market you’re funneling into, feed them on a monthly basis and at their doorstep. From panties to snacks, condoms to clothes, the monthly subscription service is taking over retail.
A PERSONAL FIT
Who wouldn’t like receiving a fashion-forward goody box every month with the latest button up design or trendy color scheme. This brilliant idea has taken off with millions of people receiving shipments on a monthly basis and only being charged for what they keep.
Frank and Oak pounced onto the scene in February 2012 and eight months later had $5M in the bank for expansion. A personalized shopper for men, Frank & Oak has beaten the competition by being the designer, the retailer, and the manufacturer, allowing for a better price for better quality.
For ladies, Stitch Fix is my ultimate favorite. My monthly dose of fashion is tailored based on my size, style, and price point.
THE NECESSITIES
NatureBox - Funded just 11 months after launching, this startup delivers healthy, tasty snacks every month. They knew it’d take more than granola bars and kale chips to get us interested so they partnered with Feeding America to deliver one meal for every box sold to feed hungry children in America. Take a look at some of the past shipments - http://naturebox.com/foods - I’m starting to drool!
Dollar Shave Club - It’s fairly elementary - one new razor, $1 each month. What stands out more than the knee-slapping “Why didn’t I think of that” response is the promotional video that got the attention of over 100,000 on social media and top tier VCs including Andreesen, Kleiner, and Venrock.
[Manpacks - Expanding on razormania is Manpacks. Underwear, socks, razors, condoms, every 3 months.]
NO, JUST....NOThe reason startups succeed is two-fold: (1) they solve a problem; (2) they gain significant market share. I’m sure the following startups solve a common problem but I don’t see a significant portion of the market wanting this "solution" on a monthly basis.
Meundies - A new pair of panites, monthly.
Panties are a $15 billion market. The reason.......variety. Do you think we asked Victoria’s Secret to create leopard print or lace? Of course not. We don’t know what we want until we see it and I certainly don't see it on this website. I was extremely disappointed in their selection and choice to launch this idea without having a laundry list of options. They should have, instead, offered their idea as a service to all our favorite panty-pushers.
Juniper - Have a lovely period.
It’s not possible but thanks for trying.
Juniper sends ladies a discreet box filled with tampons, chocolate, and teas every 28 days for $28 a month. This has a small, if any, chance of succeeding because for $28 a month I can get all that plus vicodin and wine. Personally, I’d rather have 3 days off work and a massage.
Dollar Rubber Club - Monthly condom delivery.
Why? They say "because it’s embarrassing to buy them at the store.” I thought it was a right of passage, a way to brag and gloat about your next days ahead. The big FAIL here is well said by Ryan Lawler at Techcrunch, “No one really ever knows how much they’re going to get laid in a month.” This is by far the stupidest monthly subscription service of them all.
So next time you’re out doing errands think to yourself, “Can this be shipped as a monthly subscription?” If the answer is YES then you might find yourself pitching to investors.
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