From magazines to dollar shave clubs, cooking ingredients/recipes delivered to your doorstep, one can see that the subscription model has become an increasingly viable method for companies to use when reaching out to their customers.
But does this only benefit businesses and corporations, or does this benefit the consumers in any way? We explore 3 reasons why we feel that consumers will love this new pricing model and result in more products following this model in the future.
Purportedly, this comes more on the side of cost-savings for the company initially. This method reduces inventory and storage costs, not requiring to keep as large an inventory throughout many parts of its process. The lack of a middleman also reduces the profit markup across the various vendors. It also eliminates slotting fees for individual products to be placed on supermarket shelves (a fee that often benefits large businesses and crowds out SMEs).
All these cost savings can then go into competitive pricing that comes at a lower cost when compared to all other products available on shelves. This allows SMEs to create subscription services based around cheaper products (rather than just expensive electronics and furniture) that couldn’t be viable before.
Convenience and time saving
Do we really need to save time on a single small thing like purchasing toilet rolls? When put that way, it almost seems like an exaggerated issue. But when you think about the time we can save from the tens of small tasks that take up our time, we realise that replacing all these small chores can add up to a lot of time saved.
Spending time with our family, getting enough sleep, doing the things we love, work, chores; the items on our agenda list can seem never-ending. Cutting out as many of these small time sinks can allow us to focus on what’s important in life. Just subscribe to a monthly delivery service, and you’re set to reliable and automatically receive the item you’ve ordered. No-fuss, no worries.
Most of these services also come with a free or subsidised door-to-door delivery service, saving you the unnecessary trip or the inconvenience of bulk purchases. This works not only for home deliveries but also for bulk office supply purchases.
Getting high-quality replacement packages with no worry
Subscription services also work well for things that have a limited number of uses. From ready-to-cook food packages to shaving products, and now for toilet rolls, these services require top up after a certain number of times for various legitimate reasons.
Having a delivery service saves you the need for storage (and sometimes essential space at home) and ensures that you can get the amount you need according to the agreement with your supplier. All these at an affordable price and massive convenience – what’s not to want here?
While this subscription plan might be new, it is indeed catching on when more and more consumers experience its benefits, making it an attractive and viable business plan in an age where people continue to get busier working schedules.
That is why Wype has decided to adopt the subscription service price model to provide premium toilet paper in Singapore. We believe in looking forward to newer methods not just to change up the market but also to offer essential cost savings and convenience to our customers, and we believe that we can do this for many years to come. Need toilet rolls? Don’t worry, we got you on this!