The Consumables Model

Subscription Models – “The Consumables Model”

We all know how annoying it can be when running out of something that you really need. Instead of buying an incredibly large amount of one product at once, the Consumables Model makes sure your customers will never run out of anything they need. The Consumables Subscription Model offers to subscribe to products that your customers need to replenish on a regular basis. Your customers can create a subscription to a certain item to make sure they never run out. This will typically regard so-called “everyday products” such as diapers, razors or toilet paper.  
Examples of businesses using the Consumables Model
The Consumables Model is typically used by businesses that sell a varied selection of “everyday products”. This could be everything from dog food to toner cartridges. A lot of larger businesses have implemented this type of subscription. An example is the American “etailer” Amazon, that provides consumers with the opportunity to subscribe to products and receive these on a regular basis.  
Who should use this kind of subscription model?
This kind of subscription model should be considered by subscription businesses that…
  • have a busy customer group, who are willing to pay for convenience
  • sell ‘everyday products’, that serve no inherent enjoyment shopping but instead are considered annoying to replenish
  • sell products that naturally ‘run out’
 
What to keep in mind when using this subscription model?
If choosing to implement this subscription model, you will probably notice that many other businesses are also using this model. You have to make sure to differentiate your offering, for example by including discounts or by branding what you sell as your own. If you have a smaller company, you need to clarify obvious and compelling reasons for creating a subscription with you – even though you can’t compete with the bigger retailers’ prices, delivery times or breadth of products. If this is the case, you need to focus on the experience when