Setting Service Pricing

Created by Devina Eilien, Modified on Wed, 21 Jan at 6:18 PM by Devina Eilien

Pricing is one of the most important decisions for your subscription business. Set prices too high and customers won't purchase; too low and you won't be profitable. This guide helps you set pricing that attracts customers while sustaining your business.

Understanding Pricing Fields

ServiceSubscriber requires two pricing points for each service:

Subscription Price

What it is: The recurring price subscribers pay for ongoing service

Characteristics:

  • Typically lower than regular pricing to incentivize subscriptions

  • Rewards customer commitment with better rates

  • Creates predictable recurring revenue

  • Billed automatically each cycle

  • Applies to customers who choose subscription option

Example: $15/week for weekly dog walking subscription





Regular Price

What it is: The standard price for one-time service purchases

Characteristics:

  • Required for all services (not optional)

  • Typically higher than subscription price (20-30% more)

  • Used for one-off purchases when enabled

  • Serves as price comparison to show subscription value

  • Not recurring—single payment for single service

Example: $20 for one-time dog walking service

✍️ TIP: Both prices are required. The regular price shows the value subscribers receive, even if you disable one-off purchases. It demonstrates "this is what you'd pay elsewhere" versus "this is your special subscriber rate."



Purchase Options Settings

After setting your prices, configure how customers can purchase your service:

Show Subscription Savings

What it does: Displays the price difference and savings amount to customers

When to enable:

  • You want to highlight the value of subscribing

  • Price difference is significant (20-30%)

  • You're encouraging subscription sign-ups

Example display: "Save $5 per visit by subscribing!" or "Save 25% with a subscription"

Allow One-Off Purchases

What it does: Lets customers purchase your service once at regular price without subscribing

Default setting: Enabled (checked by default)

When to keep enabled:

  • You want to let customers try before subscribing

  • Your service works well for occasional needs

  • You can accommodate one-time requests

When to disable:

  • You only want subscription-based customers

  • One-time services aren't viable for your business

  • You want to focus exclusively on recurring revenue

Fulfillment timeline: If enabled, set how soon one-off purchases will be fulfilled (24-48 hours, 3-5 days, 5-7 days, 1-2 weeks, 2-4 weeks)


Subscription vs Regular Pricing

Setting the Subscription Price

Your subscription price should meet these criteria:

  • Cover all costs plus profit: Calculate using the pricing formula to ensure you cover expenses, include all payment processing fees (Stripe + ServiceSubscriber transaction fees), add your desired profit margin, and round to attractive price points like $49 or $75.

  • Be competitive: Research what local competitors charge for similar services, price similarly when offering comparable quality, and justify higher prices with clear differentiators like better service quality, eco-friendly products, or additional value.

  • Encourage subscriptions: Set subscription prices lower than regular pricing, demonstrate clear value for the recurring commitment, and make it worth the customer's ongoing investment.

Example subscription prices: Weekly lawn care typically ranges $40-60/week, monthly house cleaning $100-150/month, bi-weekly window cleaning $70-90/visit, and quarterly pest control $120-180/quarter.


Setting the Regular Price

Since regular price is required for all services, set it strategically:

20-30% premium recommended: If subscription price is $80/month, set regular one-time price at $100-105/visit to show clear savings for subscribers.

Why charge more for regular price:

  • Creates price anchoring effect (subscription looks valuable)

  • One-time services provide less predictable revenue for planning

  • Higher customer acquisition costs without recurring revenue

  • No loyalty commitment from customer

  • More scheduling complexity compared to recurring subscriptions

If you disable one-off purchases: Regular price still serves as a comparison point to show subscription value, even if customers cannot actually make one-time purchases.

Variable Pricing (Multiple Tiers)

Variable pricing works best for services where size or scope varies significantly between customers.

Good for: House cleaning based on home size (small/medium/large homes), lawn care with property size variations, pool service for different pool sizes, or pet care based on number of pets.

Creating Price Tiers

Typical three-tier structure:

  • Small/Basic: Entry-level pricing for smallest scope

  • Medium/Standard: Most common tier where majority of customers fall

  • Large/Premium: High-end pricing for largest scope

Example: House Cleaning

  • Small home (1-2 bedrooms): $90/month

  • Medium home (3-4 bedrooms): $120/month

  • Large home (5+ bedrooms): $160/month

Example: Lawn Care

  • Small yard (< 2,000 sq ft): $40/week

  • Medium yard (2,000-5,000 sq ft): $55/week

  • Large yard (5,000+ sq ft): $75/week

✍️ TIP: Most customers choose the middle tier. Price it as your target rate with small and large tiers providing options for outliers.


Purchase Options with variable pricing: Set Purchase Options at the service level—they apply to all tiers. If you allow one-off purchases, customers can choose their tier and purchase once, or subscribe to ongoing service at that tier.

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