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High-end DTC brand charges customers to buy from them

High-end DTC beauty brand, Beauty Pie launched by serial entrepreneur Marcia Kilgore, operates on a paid membership basis. You need to buy a monthly or yearly subscription to get access to the products. The concept is based around the fact that most premium beauty brands use the same outsourced labs and manufacturers, Beauty Pie’s innovation is to be upfront with customers about this and offer their lines at ‘factory prices’, thus saving money without sacrificing on quality. The company’s messaging and PR all point towards the subscription cost being how the brand makes their money. They’ve even been dubbed the ’Netflix of Beauty’ and go to the extent of offering different membership tiers with caps on how much customers are allowed to spend on the site.

 

Beauty Pie are affectively running a ‘recurring revenue’ style business model. Unlike subscription businesses, customers are charged every month whether they receive goods for not. Whilst basing a whole business around this concept may be hard to do, is there a way you could put certain areas of your brand behind a paywall or membership program? Maybe in return for exclusives, early access or even annual product refurbs? This could potentially add to your monthly revenue, without increasing unit sales or even having to acquire new customers.

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Beauty Pie

Image Credit: Beauty Pie

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