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: The Home Depot offers a range of vehicles and tools for rent at over 1,000 locations across the U.S. and Canada, providing value and convenience for both our Pro and DIY customers. Customers do not need to purchase specialized equipment, but can rent them for a specific project’s duration.
Learn more about The Home Depot →
How they do it: GE rents out certain of its products to customers. This allows its customers to balance peak production requirements, or need to troubleshoot unexpected situations. This gives customers flexibility and cost advantages.
Learn more about General Electric →
How they do it: Foxconn also acts as contract manufacturer for companies such as Apple. This allows Apple to utilize Foxconn’s large production facilities and low cost facilities to mass-produce their products. By offering contract manufacturing Foxconn allows its customers to avoid building own production facilities which would require large investments.
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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: 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.
Learn more about Hewlett-Packard →
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.
