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Showing posts with label subscription based business model. Show all posts
Showing posts with label subscription based business model. Show all posts
Subscription Revenues; On-Demand Expenses
Note: Businesses should look at moving towards a model for recurring inflows while they should making their expenses as variable as possible.
Startup Model – Delivering Craft Beer to Offices
THE MODEL: An app
which delivers craft beer from local breweries directly to your office every
Friday. Also users can get beer for any special occasion on any day of the
week.
STARTUP: DeskBeers (British startup)
WHAT I LIKE
Core Idea – A
platform to deliver craft beer to the office on Fridays.
About the Beers –
The beers come directly from small, independent micro-breweries. Also each box
contains a variety of beers since different people have different tastes.
B2B Subscription
Service – Customers have to subscribe to the service for a weekly, fortnightly
or monthly delivery. Quick purchases for special occasions are also available
on any day of the week.
Benefits to Users
– The service is easy to start, modify or cancel. Also users can try out the
best beers sourced directly from breweries. Calling in beer on a Friday also
makes the atmosphere in the office more relaxed and makes it like an event
where everyone can bond and interact with each other.
CONCERNS
Scalability – The
business is difficult to scale as it involves first tying up with different
breweries and then setting up a logistics network.
Business Model – The model is one where profitability may be a
concern. Customers may not want to pay more than a reasonable premium for this
service and hence margins may be very tight.
Startup Model – Subscription Based E-books & Audiobooks
THE MODEL: A subscription
service for users where they can listen to audiobooks and read ebooks as many
as they want. An option to download a limited number of books is also
available.
STARTUP: Storytel
(Swedish startup)
WHAT I LIKE
Core Idea – A
subscription based model for listening to audiobooks and reading ebooks.
Subscription Model
– Users can access unlimited books for the monthly subscription charges.
Best Model for Chosen
Category – Subscription can generate more revenue as compared to individual
book sales. Also audiobooks and ebooks have to be bought once and can be
accessed any number of times. This ensures better financials for the startup in
the chosen category.
CONCERNS
Competition – The startup competes with other similar
services and also all vendors selling ebooks and audiobooks.
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