We have seen in previous blogs that when it comes to the value of your business, what happened in the past is much less important than what is likely to occur in the future. One of the most important ways you can shape the future of your business is to create some recurring revenue, it is critical for the value of just about any small business, and it is equally important for the world’s largest companies.
I mentioned in my last blog “Simplifier Subscription Model” as one of the Recurring model described by John Warrillow, in his book The Automatic Customer: Subscription Business in Any Industry. Selected by Fortune Magazine as one of the “5 Best Business Books” of 2015. Today I share with you what John says about:
The Consumables Model involves offering a subscription to a product that the customer needs to replenish on a regular basis. The value proposition is simple: life is too short to worry about mundane tasks like remembering to pick up diapers or razor blades; subscribe and you’ll never run out.
The model works best when there is no inherent enjoyment in shopping for what you sell. Consumables subscription models have been set up for products as varied as razor blades, diapers, dog food and toner cartridges.
The Big Box “etailers” (e.g. Amazon, Target) have started to offer subscriptions for many of their consumable products, so be sure to identify ways you can differentiate your offering against the scale of Amazon and other giants.
The key is making sure they don’t have to remember the scheduling, deal with immediate variable payments, or worry about quality.
Can your business survive without you?
If you wish to build up the value of your business and would want to explore what you could do to make it sellable, please do not hesitate to call Jean-Bertrand de Lartigue on +44 1656 766 363 or email him, email@example.com