The lifetime value of each subscriber is really high, so it seems to make sense that you could spend $XX in customer acquisition costs.
I've wanted to do something similar for a while, but this is really my only sticking point.
I've sort of abandoned the idea that there would be some easy way to just get traffic coming in. It's more a fight for finding and retaining each subscriber. Also ads aren't completely on autopilot either, as channels change. When you buy some ad space, it might work OK at first but then work less well in the future as visitors to those sites have already seen your ad. So have to keep following if each purchase still makes sense.
Let's say you can optimize it down to $75 with better ad copy:
* Higher CTR -> lower spend
Then let's say you can optimize it down to $50 with better conversion funnel tracking
* You get their email and then send them a free eBook about Japanese candy or stationery, then you ask them if you have permission to keep contacting them. If yes, you keep providing value and eventually sell them on more Candy Japan packages.
* You include the video on your page
Then you instrument a referral incentive system
* You give someone double-candy if they refer a friend
Then you ask the people who aren't retaining why they aren't retaining. You bucket their complaints into categories and you provide solutions.
* "I only needed it for this one specific occasion" -> You sell them a gift subscription package instead, at a much lower price, so the recipient knows they are still thinking of them, with bigger upside kicking it at later months. i.e., month 1 = one piece of candy, month 2 = two additional pieces of candy, month 3 = 3 additional pieces of candy
Lifetime value could surpass conversion cost.
Did you ask them if they'd be interested in smaller packages?
\) Can you try switching them to "Pen Japan" 1.1 months before the usual cancellation point? This could be done with an opt-in.
\) Incrementally iterating on Mithaldu's idea, can you try giving them a price break (and announcing it with an email!) 1.1 months before the usual cancellation point?
\) Can you add a "But wait! If you stay around, you can get a 10% discount on your subscription cost" last-minute notice to your cancellation page, that is only presented if the user has been around for (the mean cancellation time - 1.1months)?
One thing I actually appreciate about some of the random time-insensitive purchases I've made from HK/China on Ebay is that I tend to forget I've made my purchase by the time it arrives. It's like an unexpected Christmas.
Hopefully with volume, better manufacturer/distributor relationships, maybe lower-cost fulfillment offshore and changing of shipping method/frequency, they can lower the price or increase the quantities.
One positive for this entrepreneur is that people already associate "Japan" with "expensive", so the sticker shock isn't really unexpected.
In our country, they will send you a notice in the post when a package has arrived. And then you have to go queue at the post office to receive it. However, every week I now find myself queueing at the post office just to see if any candy packages might have arrived.
I think the twice a month deliveries are great as they are still pretty far apart that you aren't sick of them yet. Lately the packages have increased in size and its a good size to make it enjoyable but not put you off sweets for a while.
Bemmu - You mentioned that a lot of people have un-subscribed, is this after you have changed from using an envelope size package to the new larger box?
In any service a certain amount of people will unsubscribe each month, but so far more people are joining and overall the service is growing.
That said, based on the testimony I've seen here I might try a few months and see...