Generate Regular Repeat Income

range of coins

If you can find a way to tie customers to your business and generate regular repeat income, you will create a wonderfully secure basis for your business.

I had to buy a new printer recently.

Printers are a classic market where the hardware is cheap as chips but then the companies make their money on the consumables.

A complete set of new cartridges costs more than the machine itself.

Or at least it used to.

When I was buying the printer I discovered that the world of ink has changed.

The printer I bought is one of those all in one jobs from HP who now have a product called Instant Ink.

Now you may know about this system.

But I’d had my printer for years and was unaware how the market had changed.

Instant Ink is a service where they automatically send you new cartridges.

Because printers are now connected to the internet, they can monitor my usage.

When the ink’s running low, lo and behold a new cartridge appears as if by magic.

When you get over the slightly scary big brother aspect of this, you realise the scheme is genius.

I no longer have to faff around looking for the best priced cartridges.

Instead I pay a small monthly payment and the job’s done

A classic win/win.

I win because it’s just so easy.

HP win because they have guaranteed regular repeat income and I won’t be slipping off and buying the cheap generic inks.

Another company with similar objectives is Healthspan.

Healthspan is a vitamin and supplement company who I’ve been buying from for years.

They offer a repeat order service.

They know precisely what I buy and with their recommended daily intake, they know exactly when I should need more stock.

So they send it automatically.

I haven’t actually signed up to this as I don’t take the recommended daily intake.

They offer a small discount if you’re on the repeat order system which is a smart thing to do.

I would guess plenty of people will sign up for the service, just to get the discount.

A small reduction in margin will be more than compensated for by the regular repeat income, the increased regularity of purchasing and the certainty of cash flow.

For the right people it just makes life that little bit easier.

If you can find some way to tie your customers in to a regular service like this, you’ll keep your claws into your customers long term and generate a consistent and predictable flow of cash into your business.

Worth thinking about surely?

If you need help with this or any other marketing issue, give me a shout on mikejennings@marketingsurrey.co.uk  or call me on 01483 200387.