The customer does not buy a product, but instead rents it. This lowers the capital typically needed to gain access to the product. The company itself benefits from higher profits on each product, as it is paid for the duration of the rental period. Both parties benefit from higher efficiency in product utilization as time of non-usage, which unnecessarily binds capital, is reduced on each product.
How they do it: Hilti’s ”Fleet Management” allows customers to rent its tools for a fixed monthly payment instead of needing to buy them. This contract includes the exchange of tools for the newest models as well as service and maitenance. The customer avoids a upfront investment and has an easy way to budget the tool costs going forward.
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How they do it: Dropbox file hosting space is not owned by the customer, but he can utilize it to store his files online. This eliminates the need for a physical hard drive.
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How they do it: Hewlett-Packard allowed its business customers to rent equipment. This allows customers to balance seasonality in server and storage capacity, data center move or consolidations, or disaster recovery.
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How they do it: Initially Netflix started with a DVD rental by mail, allowing customers to order DVDs to their home. In 2007 they introduced the streaming platform which is now the core offering of the company.
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How they do it: On Spotify, users are unable to purchase individual songs or albums. Rather, they gain access to all songs on their platform for a flatrate, monthly fee. Access is granted based on the membership and not via a purchase, making music consumption more flexible for customers.
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Below, the top industries for the pattern "Rent Instead Of Buy" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Below, the pattern "Rent Instead Of Buy" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
