![]() When traveling, customers don’t expect to pay the same in every Starbucks they enter (the Starbucks model is a subject for another post). Different pricing in Blue Apron’s online storefront, even if justified, just feels unfair and it is understandable that the company has avoided changing pricing based on location. The two states reported where Blue Apron customers are a larger proportion of their population are California (15% of customers) and New York (8% of customers). But that attitude changes when it comes to physical storefronts. To the consumer, online feels like it should be the same no matter where they are, at least if they are within the same country. Further, when the business’s storefront is online (as opposed to a brick and mortar storefront that customers walk into), price comparison is easy. In the past, a price difference might have been accommodated by charging more or less in delivery fees, but that is something that consumers have been socialized (by Amazon) to disdain. Even if costs did not vary, local market desire to pay different prices should be something that a national company could benefit from. But what are the root causes of some of these issues? And why might Blue Apron have been forced into a position that looks, at least temporarily, as impossible to improve?Ī problem faced by many mass market subscription services that deliver physical products (as opposed to digital products) is that costs vary depending on customer location and yet the company cannot easily assign different pricing based on location. We’ve seen their high CAC (customer acquisition cost) and customer retention problems. ![]() ![]() Their stock price is currently $2.15 (it was $10 on opening day). After a couple years of talking about Blue Apron in my classes and accelerators I thought I’d write of those thoughts down.īlue Apron is the meal delivery company that everyone loves to hate.
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