Anyone ever try a subscripion based model!?!

[sonewcoffee]

So yesterday I was thinking of other industries and businesses and seeing if there were any take aways that the coffee industry could take on. One that came to mind was a "subscription based model" offering to customers. (Now pricing and details still need to be thought out!) I thought I would float it out here and see if anyone has already tried/ or currently doing this... so this is how I see it would be.. for $45 a month (again this is just a price I'm throwing out) a customer can get as many cups of coffee they would like, so long as they are in the coffee shop and/or 1 cup to go. The thinking is that I dont want something coming in in the morning to grab 10 cups for the office. Also I said unlimited in the shop because as we know the longer they sit there the more likely they are to get that second piece of pie or a sandwhich, etc. Also the chances of everyone who gets one of these subscriptions coming in every single day is next to none. Of course you bill them directly to their card on a re-occuring basis untill THEY cancel. Almost like your Internet or Netflix.

Any thoughts?!?!?!?!?

 

[CoffeeJunky]

That is very interesting thoughts but it would need to be thought out very carefully. But the concept is good and would work if the cost is reasonable. Many people who drink coffee also have beans at home so I think offering 1 pound of freshly roasted coffee per month would also give incentives. But unlimited cup of coffee alone would be hard sell.

 

[PinkRose]

I picture it being like a membership to a gym. It looks inviting, but once you join and pay, you stop going.

Are you thinking of the subscription to include the more expensive espresso based drinks or just regular cups of drip coffee?

Most people don't mind paying a couple of dollars at a time for a cup of coffee. When they have to hand over a larger amount, they start to realize how much they're spending, and that's not a good thing.

I know I wouldn't want a coffee shop billing anything to my charge card on a monthly basis. I'm very careful when I use my charge card in cafes and restaurants, because I've seen (first-hand) how careless people behind the counter can be with people's charge card information. If you try to keep a person's charge card information "on file" there is a greater risk of someone mishandling it.

People tend to like the buy 5 drinks and get one free punch cards. It keeps them coming in, and they don't have to put out any extra cash to get the incentive.

Rose

 

[CoffeeJunky]

I agree with Rose in some part, but I think there is market for people who is looking for coffee everyday. Buddy pass, free give away, and other incentives would work for people who gets a cup every morning. As i have said above, it has to be good value for people to use it. Like Netflix, it could work if you offer great value for their money. I don't think 45 dollars would work but if you can think of something like 25 dollars per month and get free unlimited regular coffee and get 25 percent off on any drinks and any product. Also get to try small 5 oz coffee trial size freshly ground coffee for free. Now if you were the consumer, this would be great value. It still needs to be thought out but this still can work.

 

[sonewcoffee]

All good points! I did just throw this out for discussion and see if there was a way to turn our industry on its ear. We need to be forward thinking. By no means am I saying that this is the answer, but it could make for an interesting discussion.

Rose, I completely agree with you regarding the large amount of money. If all of a sudden you are asked to spend $20, $30, $40 a month, you start to realize how much you really are spending on coffee!

Perhaps the subscription would include 1 espresso based drink plus all you can drink regular coffee. Or maybe its only for the "premium" coffees you offer. For example you have 10-15 premium roasts, signature drinks, etc, for $45 you give someone the "Gift of Coffee" for a month. Its for the coffee lover you know, (friend, mom, dad, uncle, co-worker, etc) and its for their birthday, xmas, etc. They can come in and try everything on the menu!

Just thoughts everyone

 

[PinkRose]

I can see the "Gift of Coffee" idea possibly working, but not for $45.

How would it be different compared to buying someone a $45 (or $25) gift card at Starbucks? At least at Starbucks, the person can use the gift card whenever they want and not have to worry about using it only during one particular month.

Rose