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Subscription business: what to do?

The Dutch company Mud-Jeans has developed an unusual business project: a subscription to jeans and their subsequent processing.

The scheme is very similar to the “rental video tapes.” The first fee is 20 euros and the monthly payment is 6 euros. For this, the client receives one pair of jeans, which in the future can always be replaced with another model, color and size. If the customer really liked the product, he can redeem it.

The peculiarity of this business idea is that when jeans that are not suitable for further use are returned, they are sent for processing (new jeans, a skirt or a shirt are made), which leads to the creation of a waste-free production process.

In Russia, subscriptions are used exclusively for business promotion, but here there are some nuances. Let’s try to figure out what types of subscriptions exist in our market and consider their features.

Whatever the textbooks, companies, organizations say, but the mission of any company is, first of all, making a profit. One of the most common marketing moves to increase demand and, consequently, increase profits, is the creation of subscriptions.

All subscriptions on the market can be classified:

By category:
Commodity subscription;
Subscriptions for services.
By ownership:
Personalized;
General.
By expiration date:
Urgent;
Perpetual.
By type of activation:
At the time of sale – activation at the time (day) of the sale;
Independent – the client himself chooses the date of use;
From a certain date (for example, from the 1st day of the next month);
Since the first use.
For temporary use
Full access;
Weekend subscription;
At a specific time of day.
This classification is general and not required to be fully consistent.

There are a large number of subscriptions on the market, almost every company is trying to implement this tool. Let’s try to consider the basic examples of subscriptions and try to find out whether they are beneficial only for sellers, or also contribute to saving money for consumers.

Travel pass is one of the very first subscription in the history.
Its creators primarily cared about the wallet of consumers. The cost of a “reusable ticket” is much cheaper than a “one-time ticket”, but buying it, we are tied to certain types of transport. The cost of a single ticket is much higher and may not always be beneficial for customers.

To increase his profit, the seller limits the subscription period of validity, the number of trips, or limits their possession (using registered tickets that are valid according to identity documents) .proezdnoi

For example, in many cities of Russia fixed-route taxis (minibuses) ride. Until recently, a ticket could only be purchased with public transport. But recently, minibuses also began to sell subscriptions in order to tie customers to themselves. Convenient enough for some, as well as for others.

The business receives predicted profits, and the client receives a significant discount, because most people using fixed-route taxis travel mainly along the same route.

Subscriptions to medical facilities
A good alternative to voluntary health insurance.

Firstly, the cost is much lower than with insurance.

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Secondly, the buyer is insured against cases of substitution of medical institutions, as he chooses the right one for himself.

For the seller, this is a guarantee that they will definitely use his services, and the risks of leaving to competitors are reduced. But the cost of treatment, as a rule, on a subscription is much lower, which is beneficial only to the buyer.

Beauty subscriptions
Used in beauty salons, in hairdressers. You can purchase 1 type of service (for example, a massage course or a visit to the solarium) or choose a subscription for a number of services for a certain period of time.

Sport event subscription
It gives the consumer a guarantee of visiting all matches, at a price much cheaper than a one-time visit, additional services are possible. For example, SMS informing about postponement of a match, substitution of players, etc.

Visiting leisure centers.
Buyers of these subscriptions significantly save their money, in turn, sellers protect their business from competitors.

Subscriptions to fitness centers.
In addition to all of the above advantages for the consumer, the sports subscription provides an opportunity to engage in a comprehensive manner, “encourages” not to miss classes.

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