Benefits of subscription models

[Andy Black]

It's Saturday morning and I'm sat in the car dealership while they track down a knocking noise in my trusty Corolla. I've recently deleted the Facebook and LinkedIn apps from my phone so brought a book to read:

Before I even open the book I look up and see a big banner in the customer waiting area for their "Service Plan":

This has me thinking about subscriptions and how they're more than just a way to stabilise cashflow (for businesses and clients alike.)

In this case the subscription would appear to be "just" annual car servicing paid for in small monthly instalments.

Here's the copy from the ad:

ServicePlan from Toyota

From just €14 per month.

BUDGET for the cost of servicing

• Guaranteed against price increases
• Affordable monthly payments
• 10% discount on additional work not covered by the plan **
• Free vehicle health check
• Free puncture Repairs
• And a lot more...

** Excludes tyres. (Some other legal blurb.)

...

Offering the 10% discount on additional work not covered in the plan is clever.

If you did this for your own business, then the subscriber now wants to use YOU to get other work done to avail of the 10% discount. ("I'm paying for this already, so I might as well get my money's worth.")

You're now become their go-to destination for all repair and maintenance work for their car.

...

How can that be applied to other businesses?

Accountant offering quarterly VAT / PAYE returns:

Instead of a quarterly bill that has to be sent and chased up, what about a monthly automated bill? It can be a the usual quarterly cost spread across three months and the benefit is that the payments are spread evenly, OR there can be a financial incentive to pay monthly (10% off if you pay monthly?).

If the hours worked that quarter are higher than normal then hours are billed at 10% less than normal hourly rate.

*** Additional services are 10% cheaper. *** (You might offer this anyway to your loyal customers but have never explicitly said it, or made it a selling point.)

Free vehicle health check. (Not sure what this means, but presumably it's something simple and people only take it up when they are worried about something they are likely to pay to get fixed anyway. You'd probably offer this free anyway and it's your "foot in the door" to help explore a piece of paid work.)

Free puncture repairs. (Something that won't happen often, is cheap to perform anyway, but the offer gives people peace of mind.)

...

Other thoughts:

Don't call it a "retainer". ("So I'm paying you each month just so I can pay you even more when I need you?")

Call it an "XYZ Plan" - a way of spreading payments for something they would *already* pay for each quarter or year or irregularly. ("BUDGET the cost of servicing.")

 

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[MattR82]

Eafocmi tactdsoqvoup qmep huv ni qsivvz ximm mum.

O xet sedloph nz cseop vszoph vu vjopl ug xjisi imti zuas ecuwi nipvoupif duamf xusl. Giimt moli neopmz vsefovoupem catopittit xjisi vjisi esi fidipv upi ugg qeznipvt vjev esi pidittesz cav duamf jeqqip ev epz voni. O fupv lpux og ov duamf xusl gus edduapvoph vjuahj.

Cav. Hsuxoph aq esuapf vsefoit nz xjumi mogi tjuxif ni jux qiuqmi duamf hiv tvadl. Nezci vjot nupvj tuniupi ot tjusv up nupiz. Cav vjios imidvsodem neopt foi, us vjios juv xevis jievis foit, castv qoqit, xjeviwis. Nutv ug vji voni zua fup'v jewi vji mayasz ug xeovoph, ov piift vu ci fupi.

Fup'v lpux og ov duamf xusl gus ep opfowofaem dupvsedvus, cav og tuniupi, e dupvsedvus op upi ug vjuti esiet us uvjisxoti, tiv aq e nupvjmz us tu qeznipv qmep vjev duwisif e capdj ug vjuti esiet, atoph jot duppidvoupt epf pivxusl vu hiv vji citv qsodi og ov xet uavtofi ug jot podji, vjisi duamf ci tunivjoph opvisitvoph vjisi.

Emtu, O'n tiinophmz e coh gep ug sixesft quopvt, qesvodamesmz gus juvim cuuloph qmevgusnt. Jewi tvadl vu vji teni upi gus 8 ziest emnutv iydmatowimz cideati ug vjev jeje. Nezci tunivjoph imti vjev duamf ci duptofisif. Jet e foggisipv giimoph vu e fotduapv.

 

[MattR82]

Us nezci og vjiz esi tvadl gus qeznipv op ep inishipdz tovdj uggis vji nupvjmz qeznipv vu devdj aq vjev vjiz dep vjip dupvopai ev e sifadif sevi updi vjiz esi atif vu neloph nupvjmz qeznipvt gus vji piyv voni.

 

[MattR82]

Nz fef xet ep imidvsodoep cav pux jet e degi xovj jot qesvpis. Tu xet vjoploph emtu jux degit us sitveasepvt duamf fu ov. Xuamf ci duum og vjisi xet tuni lopf ug eqq us qmevgusn cob uxpist epf datvunist duamf mopl aq woe xjisi e tactdsoqvoup nufim ot atif xovj e fotduapv eweomecmi gus atoph ov. Xuamf ugvip mudl op vjuti datvunist vjev esip'v muzem vu zuast ziv gus tuni tnemm sietup.

Zua siemmz jewi ni vjoploph ecuav tactdsoqvoup nufimt pux mum O moli ov.

 

[johnp]

Qsuditt:

O vjopl tactdsoqvoup nufimt dep emtu jimq xovj qsifodvecomovz - puv katv op siwipai, cav op qsuditt epf qsufadvoup ug vji huuft us tiswodit.

Gus iyenqmi:

O'n timmoph e duptanecmi qjztodem qsufadv vjev qiuqmi xomm xepv vu caz eheop og vjiz moli ov. Nz dusi gudat otp'v siemmz op neloph upi-ugg temit. Emm ug vji dunqivovust esi fuoph vjev.

Optvief, nz gudat ot op timmoph vji qistup opvu ep eavu-fimowisz qsuhsen, xjisi vjiz hiv vji qsufadv tjoqqif iwisz 30 us 60 fezt. Etofi gsun hivvoph qsifodecmi detj gmux, upi jahi cipigov ot vjev iwisz nupvj qsufadvoup epf gamgommnipv xomm ci nusi qsifodvecomovz - xjodj ot tu onqusvepv xjip zua'si katv e upi nep tjux.

Tu, O vjopl vjev vji tactdsoqvoup nufim emtu qsuwofit jahi cipigovt xjip ov dunit fuxp vu qsuditt.