Pricing Models Flashcards
What do pricing models for a food delivery subscription service business depend on?
Target market,
Range of services offered, and
The specific value proposition of the business.
What is Fixed Price Subscription?
Customers pay a fixed amount on a recurring basis, typically weekly, bi-weekly, or monthly, to receive a set number of meals or meal kits.
The price may vary based on the plan chosen (e.g., number of meals per week) or portion sizes (e.g., individual or family-sized portions).
What is Tiered Pricing?
Different subscription tiers with varying levels of service or benefits at different price points.
For example, a basic tier may include a certain number of meals per week, while a premium tier may offer additional perks such as exclusive menu options or faster delivery.
What is Pay-Per-Meal?
Allows customers to pay for meals on a per-meal basis.
Customers can select individual meals from a menu and pay for each meal separately.
This model offers flexibility for customers who may not require regular or recurring meal deliveries.
What are Add-Ons and Extras?
In addition to the base subscription price, food delivery services may offer add-ons or extras for an additional cost.
These can include options such as snacks, beverages, desserts, or premium ingredients that customers can choose to include in their orders.
What is Customizable Pricing?
Allows customers to build their meal plans or customize their orders, with pricing based on the items selected.
This model offers flexibility and caters to individual preferences but may require dynamic pricing algorithms or customer self-selection tools.
What are Prepaid Plans?
Customers pay upfront for a certain number of meals or a specific duration of service.
Prepaid plans often come with a discounted rate compared to the pay-as-you-go option, providing an incentive for customers to commit to a longer-term subscription.
What are Promotional Pricing and Discounts?
Frequently offered promotional pricing or discounts to attract new customers or incentivize existing customers to continue their subscriptions.
These can include introductory offers, referral discounts, or seasonal promotions.
