← Back to Network View
Rent Instead Of Buy 40#
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.
Apply this pattern to your own business and create your next innovative business model!
Examples: Iconic Cases
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.
Learn more about Dropbox →
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.
Learn more about Spotify →
How they do it: Car2Go users can use any of the companies cars for a fee per minute after registration to the service. The users can hence benefit from a car when in need of one free of the obligations and risks of actually buying and owning one. The company’s car can benefit from a much higher utilization than they would have with individual car owners.
Learn more about Car2Go →
How they do it: Xerox was a pioneer in supplying photocopiers and printers to enterprises on a rental basis in the late 1950s. Instead of buying equipments with a high initial capital expenditures, firms could rely on flexible rental contracts.
Learn more about Xerox →
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 →
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 13 firms using this pattern.
Top Industries
Transportation
18% of firms using pattern
18% of firms using pattern
Consumer Goods
14% of firms using pattern
14% of firms using pattern
Information Technology
9% of firms using pattern
9% of firms using pattern
All Industries
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.
Top Co-Occurrences
Affiliation
1 pattern co-occurrences
1 pattern co-occurrences
Pay Per Use
1 pattern co-occurrences
1 pattern co-occurrences
Subscription
1 pattern co-occurrences
1 pattern co-occurrences