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Showing posts with label subscription business model. Show all posts
Showing posts with label subscription 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.
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