In the early 50s, Sol Prince revolutionized the retail industry when he converted a vacant airport into a warehouse-style store called FedMart.
With a $2 membership fee, one could access an assortment of deals on anything under the roof. Now, how Sol sold FedMart, started Price Club, and merged with his largest competitor Costco is a story for another day. Still, introducing subscriptions in a space no one expected, was radical at that time.
Today, we find subscriptions making inroads into every industry. Be it your morning coffee, your monthly doctor appointments, or even the clothes you wear, subscription has found its way into your everyday life. While smaller brands focus more on personalization and curation to stand out, more prominent brands add subscriptions to their string of offerings to gain a larger chunk of the growing market.
In this week’s Compass, let’s look at how subscription businesses can drive more predictable revenue.