Food | Blue Apron | Nature Box | Are the good/services perishable? | Highly perishable (3), | Not very perishable (1) | Predictably consumed? | Very predictably consumed (3) | Not at all predictable how fast consumed (1 | Offer good value, too? | Much less expensive (3) | Much less expensive (3) | Total Score: | 9 | 5 |
Companies chosen:

Clothing | Five Four Club | StitchFix | Are the good/services perishable? | Not very perishable (1) | Not very perishable (1) | Predictably consumed? | Not at all predictable how fast consumed (1) | Not at all predictable how fast consumed (1) | Offer good value, too? | Much less expensive (3) | Much less expensive (3) | Total Score | 5 | 5 | Beauty | The Dollar Shave Club | BirchBox | Are the good/services perishable? | Highly perishable (3) | Not very perishable (1) | Predictably consumed? | Very predictably consumed (3) | Very predictably consumed (3) | Offer good value, too? | Much less expensive (3) | Much less expensive (3) | Total Score | 9 | 7 |

News | Financial Times | Wall Street Journal | Are the good/services perishable? | Highly perishable (3) | Highly perishable (3) | Predictably consumed? | Very predictably consumed (3) | Very predictably consumed (3) | Offer good value, too? | Much more expensive than you’d pay elsewhere (1) | Much less expensive (3) | Total Score | 7 | 9 |

Analysis:

The essential revenue model and longevity of a subscription service will solely be dependent on the product / service it provides. The said product has to be in demand and the service should be able to pass on some financial benefit to the customer. A business must convince the customer that they have the best products or offer compelling value.

Blue Apron has been able to establish a set clientele and repeat business by sending out gourmet meals with recipes. They have been successful in tapping into the American dream of ‘wanting to cook, but have no time for it’ myth. The idea has great potential to succeed as eventually it will weed out one-time users and focus on extending their menu, creating data of clients etc.

Nature Box has made munching fun, by sending you healthier snacks. Their meticulous detailing is key in their ultimate goal of customer experience. Even though they didn’t score very highly (as per the rating system), I think they are the most efficient package overall. Chances of success – Medium to high

Five Four Club quickly filled the gap in the affordable, direct to consumer menswear. It gained momentum owing to its first-of-its-kind box of the month subscription through an ecommerce model. The model proved so popular that the company eliminated its ecommerce store and is now 100 percent subscription. Already profitable. Chances of Success – High
StitchFix is a women’s only on demand clothing service. The biggest drawback is the inventory sent to customers is locally sourced / available in the market. Their prices are also extremely inflated which makes me feel that the business may not find its place in the long run.
The Dollar Shave Club has made shaving cool. Men shave regularly, and they need their supplies regularly. For just a few dollars a month, they can get their razors and shaving supplies mailed to their doorstep by a company that gets it. The Dollar Shave Club has found a product that works for the model they want. Chances of success – High.
BirchBox is the original exponent of the subscription economy. It offers brands highly targeted exposure and detailed metrics. Birchbox subscribers get an opportunity to try deluxe cosmetics that are tailored to their individual features, personality, and style, without having to commit to the pricey full-size product. Chances of Success - High
Financial Times - The subscription charged by FT is almost double the amount charged by the WSJ or the NYT, partly because of the hardcore financial information available to its readers. Its aim is not to compete with the likes of NYT, but at the same time there are question marks over its subscription price. Is the journalism at FT so much better than that of NYT or WSJ? Chances of success – Medium

Wall Street Journal- WSJ was one of the first companies to charge a subscription for its digital edition. Though its subscription model has lost ground in recent years, WSJ is revamping through a mobile-focused strategy. Its new technology systems and platforms will allow it to innovate more quickly. Chances of success – Medium to High

In spite of its challenges, recurring billing is an industry game changer. If you don’t start a subscription component to your business, then you’ll have to compete with companies in your industry that do.