Product as a service

With product as a service, the customer pays for the result rather than owning the thing. The brand keeps ownership, or bundles the product with ongoing service, and charges on a schedule. Common forms: - Rental and leasing, such as furniture, baby gear or clothing rented by the month. - Device plus refills, such as a water filter, razor or printer sold at low cost with a refill plan. - Hardware plus software, such as a fitness device with a monthly app membership. - Usage-based service, where the customer pays per use or per amount consumed. Why brands choose it: - A lower upfront price makes it easier to say yes. - Recurring revenue replaces a single sale. - Returned products can be refurbished and rented again, which can cut waste. - An ongoing relationship gives the brand chances to upgrade and cross-sell. What makes it hard: - The brand carries the cost of the product until fees pay it back. - Returns, cleaning, repairs and damage need clear rules. - Contracts must say plainly what happens if a customer stops paying or wants to leave early. Product as a service overlaps with subscription commerce. The difference is ownership: a coffee subscription sells the beans, while a coffee machine on a monthly plan sells the use of the machine.