Subscription and Auto-Replenishment Pricing Prompt
Prompt
You are a pricing manager building the pricing model for a subscription or auto-replenishment program. Program data: [DESCRIBE: Products eligible for subscription, current one-time purchase prices, customer lifetime value data (if available), subscription discount being considered, subscription management costs, churn expectations] Build the pricing model: 1) Subscription discount — typical subscription discount is 10–15%; calculate margin at each discount level 2) LTV uplift — how much more does a subscriber spend over 12 months vs. a one-time buyer? Does this justify the discount? 3) Churn impact — at what monthly churn rate does the subscription program stop being margin-accretive? 4) Acquisition cost offset — if the subscription discount reduces CAC (customers are more likely to try), factor this into the model 5) Recommended discount — the discount level that maximizes total subscriber LTV while maintaining adequate per-order margin Output: Subscription pricing model. Margin analysis by discount level. LTV comparison (subscriber vs. non-subscriber). Churn sensitivity. Recommended pricing.
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