Jesse from Subscription School defines 6 essential terms relating to procurement for subscription boxes.
60 Second Sesh: 6 Words You Need to Know for Subscription Box Procurement – Transcript
Hi everyone! This is Jesse and welcome to Subscription Schools next 60 second sesh. Today, we’ll be defining a few key terms related to procurement.
Procurement: Procurement is the process of sourcing, purchasing, and receiving products that go inside your subscription box.
CRM: Customer Relationship Management tool. A CRM is kind of like an electronic rolodex with extra features, like email scheduling, tags, folders, and other tools.
Niche: A small specific market for products and services.
Value Proposition: The value proposition is the reason why people have subscribed to your box. This is the promise your products and procurement must fulfill.
Positioning: Positioning is angle in which you approach vendors who work with you on your subscription box. This includes how you pitch yourself to vendors, ie. a sample model vs. a purchasing model.
Purchase Order: Purchase Order or PO is essentially a sales contract. This delineates the order, the shipments information, pricing, and any other stipulations behind the partnership.
Want to learn more about procurement? Check out our other videos and visit us at SubscriptionSchool.com.