We can't believe it has been since February of 2022 that we have done a subscription-economy update. (Check it out at http://thesoulofenterprise.com/378.) We are glad to be sneaking this one in just under the wire for 2023. Ron and Ed share their latest thinking on the progress (or regression) of subscription pricing both in the professions and in the broader market including both business and consumer. As usual they come "loaded for bear." It will be a challenge to listen to this one at double speed.
Use these show notes to follow along with the audio:
Segment one:
Other subscription updates that were full shows include show 378 in February of 2022. Show audio and notes here: https://www.thesoulofenterprise.com/378
For one and done services, it’s really hard to turn into a subscription. What about a real estate agent, for example? We don’t have an answer yet but maybe some businesses do not fit the subscription model.
Divorce attorneys and funeral parlors. Those are two great examples Ron and Ed give that are……ahem…..challeging from a subscription perspective.
Ed and Ron had a fun time with this article today with a hat tip to Hector Garcia. Let’s just say there are some holes in the article :) https://www.axios.com/2023/11/24/membership-subscription-economy-business-model
Segment two:
From Andrew on LinkedIn (via Ron): He runs a sonic branding agency (the sounds we associate with brands) with weekly and bi-annual orders with budges in hundreds to the tens of thousands. How can this be a subscription?
Related to Andrew’s question, Tim Williams has a great quote here because this is more about positioning than it is pricing: “Be something to someone.”
Here’s a great definition of strategy from Playing to Win by AG Laffley and Roger Martin: “Strategy is an integrative set of choices that positions you on a playing field of your choice so that you can flourish.”
“Diversification is what you do when you don’t know what to do. “ —Tim Williams
Segment three:
The subscription release of the year for 2023: CNN blocks all programming of CNN so that you don’t see it again for $15 per month https://babylonbee.com/news/cnn-introduces-premium-subscription-service-that-blocks-all-cnn-programming-from-view
Gaming subscriptions are an enormous market now. Total gaming subscription revenue is currently estimated at $16 billion with game subscription revenues to rise to $22 billion a year by 2027 https://www.xfire.com/game-subscription-revenues-to-rise-to-22-billion-a-year-by-2027
People Are Sick and Tired of All Their Subscriptions: https://www.wsj.com/articles/people-are-sick-and-tired-of-all-their-subscriptions-cbee7e03
“Subscription moves things from CapEX to OpEX. It makes things more predictable and usually saves cash flow.” —Ron Baker
Segment four:
Great news from Ron! You are invited to attend the Successful Bookkeeping virtual summit where Ron will be speaking on the subscription business model. Register here: https://www.thesuccessfulbookkeeper.com/virtual-summit-2023
Wait….what??? Did Ron just say you don’t need 3 pricing options anymore? You’ll need to listen to segment 4 of the show today to listen to him tease out this idea.
From Ed today: Why has this option not appeared since the advent of cloud accounting? “You can use our system as long as you allow us to use your data to train our systems.”
Why do people gravitate to flat pricing? Three reasons: 1) We overestimate our usage. 2) The feeling of being nickeled and dimed. 3) The insurance effect.
Bonus Content is Available As Well
Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.
Click the “FANATIC” image to learn more about pricing and member benefits.