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...