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Pricing Pulse | May 2019

Welcome to the May 2019 monthly wrap-up on what’s going on in the world of Pricing, Behavioural Economics and Business Model Monetization.

This month, we’re primarily talking about subscriptions, subscriptions and more subscriptions, because, let’s face it, there is really nothing you can’t buy on a subscription these days (even cartoons).

In the USA, where cheese isn’t cheese, chocolate isn’t chocolate and coffee isn’t coffee, Burger King have launched a $5 per month coffee subscription. Here’s the maths part done for you: on a cost-per-cup basis, that’s $0.1785c in a 28 day month dropping to $0.1612c in a 31 day month.

What’s the catch (beside it being Burger King Coffee)? Not much – there is currently no end date on the app-only offer for one small brewed coffee per day at participating locations across the 48 contiguous states of the US.

A coffee subscription more in line with Australian tastes however comes from Three Thousands Thieves, who will send you between 1kg – 3kg of coffee every month for between $50 – $130 per month.

So now that your coffee needs are met, how about sorting out your meals? Deliveroo last month quietly launched unlimited deliveries for an $18.99 per month subscription, initially in Sydney. Meanwhile dog food is proving a very popular subscription product, thanks to services like Scratch Pet Foods and Rawmate.

Over in the online steaming world, the big news in April was the announcement of Disney’s video service, Disney Plus, and the possibility it may be bundled with Hulu and ESPN at a very competitive price point rumored to be around $7 per month.

That could give Netflix a run for its money in the USA who according to one estimate, may lose around $2.3bill per year due to people “mooching” account log-on credentials from relatives and friends.

Meanwhile, over at Spotify, they’re embracing shared log-ons and have been testing a product called “Premium Duo”, a discounted subscription for two people residing at the same address, offering a 37.5% discount off two premium Spotify subscriptions.
 

Don’t forget, with pricing experts in the USA, the UK, Australia, New Zealand, Canada, France, Hong Kong and China, with almost 200 years of cumulative B2B and B2C price knowledge and experience in 43 different industries, there’s hardly an industry we can’t make more profitable.
 
So which expert are you going to talk to…?

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