I heard this news story on NPR this morning on Concierge Medicine, another example of the subscription model which seems to be gaining ground. It’s my feeling that the subscription model is the trend to weather these rough economic times. It allows the provider to plan ahead, ideally for a year at a time. Even if initial revenues are initially lower, the security of knowing who your customers are and for how long increases efficiencies within a business, and will lead to increased profits over time (and better customer relationships).
What if supermarkets followed this model? Paying the market a monthly fee, signing up for an annual package. They put your credit on your shoppers card, let’s say with a 15% discount off of ticket prices. Then you could shop as normal, checking out using your shoppers card, you’d save a bundle, plus the market could plan better, possibly bringing prices down as efficiencies grew? The local gas company offers a flat-rate monthly payment, what other industries could benefit?