arrow_upward

Nima Idel

Head of Product Growth
 @ 
Loopit

The Goldilocks approach is a method for finding the optimal balance between pricing that is too low, pricing that is too high, and pricing that is just right. This approach can be used to find the best usage-based pricing for your car subscription service.

Implementing the Goldilocks Approach

Here is a detailed guide on using the Goldilocks approach to find the best usage-based pricing for your car subscription service:

Step 1: Determine your costs

The first step in using the Goldilocks approach is to determine the costs of providing your car subscription service. This includes factors such as the cost of vehicles, maintenance, insurance, fuel, and other expenses. Make sure to consider all the costs involved in providing the service so that you can accurately determine the minimum and maximum prices for your service.

Step 2: Identify your target market

To find the best usage-based pricing for your car subscription service, it's important to understand the needs and preferences of your target customers. Consider factors such as driving habits, preferred type of vehicle, and budget when identifying your target market. This will help you determine the price points that are most appealing to your target customers.

Step 3: Set the low-end pricing

Start by setting a low-end price that is based on a conservative estimate of usage and cost. This will serve as a reference point for determining the other pricing options. The low-end price should be set low enough to attract budget-conscious customers while still covering the costs of providing the service.

Step 4: Set the high-end pricing

Next, set a high-end price that takes into account the maximum usage and cost for providing the service. This will provide a reference for determining the upper limit of pricing. The high-end price should be set high enough to ensure that the costs of providing the service are covered, but not so high that it deters customers from using the service.

Step 5: Determine the just-right pricing

Using the low-end and high-end pricing as reference points, determine a just-right price that balances the costs of providing the service with the needs and preferences of your target customers. This is the price that offers the best value for both the customer and the business. The just-right price should be set at a point that is appealing to both the customer and the business, taking into account the costs of providing the service and the value it provides to the customer.

Step 6: Monitor and adjust

It's important to continuously monitor usage patterns and customer feedback to ensure that your pricing remains competitive and attractive. Make adjustments as needed to ensure that your pricing model remains balanced and effective. This will help you respond to changes in customer needs and preferences, and ensure that your pricing remains relevant and appealing over time.

The Goldilocks approach can be an effective way to find the best usage-based pricing for your car subscription service. By determining your costs, identifying your target market, and setting low, high, and just-right pricing options, you can create a pricing model that balances the needs of your customers with the costs of providing the service. And by continuously monitoring and adjusting your pricing, you can ensure that it remains competitive and effective over time.

About the Author

Nima is a highly experienced Product Leader with a track record of successfully leading cross-functional teams to deliver innovative and market-leading products. With over 15 years of experience in the design and product segment. Nima is also an expert in Agile product development methodologies, and is skilled at leading teams through the entire product development cycle.

Nima Idel

Head of Product Growth
Link to current section
Link to current section
Link to current section
Link to current section
Link to current section
Link to current section
Link to current section
Link to current section
Link to current section
Link to current section
Link to current section
Link to current collection
Technology Standards
Link to current collection
Regulatory Environment
Link to current collection
Profitability Analysis
Link to current collection
Performance Metrics
Link to current collection
Operational Requirements
Link to current collection
Defleet Management
Link to current collection
Technology Partners
Link to current collection
What is Car Subscription?
Link to current collection
Back-End Operations
Link to current collection
Digital Customer Experience
Link to current collection
Captives & Incumbents
Link to current collection
Subscription Models
Link to current collection
Subscription Agreement
Link to current collection
Fair Wear and Tear Policy
Link to current collection
Incident Management
Link to current collection
Scaling Your Business
Link to current collection
Vehicle Profitability
Link to current collection
Subscription Metrics
Link to current collection
Bookkeeping & Accounting
Link to current collection
Breaches and Repossessions
Link to current collection
Accounts Receivables
Link to current collection
Customer Assessment
Link to current collection
Vehicle Collection and Handover
Link to current collection
Vehicle Monitoring
Link to current collection
Vehicle Management
Link to current collection
Application and Pre-Approval
Link to current collection
Car Subscription Website
Link to current collection
Car Subscription Plans
Link to current collection
Customer Acquisition
Link to current collection
Marketing Strategy
Link to current collection
Payment Guidelines
Link to current collection
Identification Guidelines
Link to current collection
Car Subscription Business Models
Link to current collection
Key Personnel Roles
Link to current collection
Defining the Business Structure
Link to current collection
Subscription vs Ownership
Link to current collection
The Future of Automotive Retail
Link to current collection
Arrears Management
Link to current collection
Breaches & Repossessions
Read lesson transcript

More in this section

Value Proposition

Access to Newer Models and Technologies

Uncover the transformative potential of car subscription services as they unlock seamless access to cutting-edge models and technologies, propelling the automotive industry into a future defined by flexibility, innovation, and sustainability.

Value Proposition

Reduced Financial Burden

How car subscription services are revolutionizing the automotive landscape by alleviating the financial burden of car ownership in the face of rising interest rates, escalating living costs, and shifting generational priorities.

Value Proposition

All-Inclusive Pricing

Explore the impact of all-inclusive pricing in car subscription services as it dismantles the opacity of traditional retail sales models, offering consumers a transparent and straightforward approach to vehicle ownership that redefines the automotive industry landscape.

Get In Touch

Book a free consultation with our experts

Start offering car subscription to your customers under your own brand. Power your own unique go-to-market strategy with an entirely configurable purpose-built solution.

10+
Speak with our experts
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.