Change the Model Change the World
The current model of manufacturing, using, and throwing away products is not sustainable for our planet or our economy. Every year, billions of products are thrown away, contributing to the growing problem of waste and pollution. But there is an alternative to this throw-away economy that can drastically reduce the amount of products being thrown away while also benefiting manufacturers, customers, and the environment.
One solution is to shift towards a rental or subscription model. This model allows products to move from one person who wants it to the next, rather than ending up in landfills. For example, instead of buying a piece of fitness equipment for home use and then throwing it away when it breaks down or is no longer needed, customers could subscribe to a gym or rent equipment for a specific period of time. This not only reduces waste, but it also allows for more people to have access to high-quality equipment.
Another advantage of the rental/subscription model is that it incentivizes manufacturers to create products designed for long-term use. When manufacturers know that their products will be used for an extended period, they have a greater incentive to invest in high-quality materials and design, resulting in higher customer satisfaction and lower warranty claims. Additionally, a product that is designed to last will also save the customer money in the long run. According to a study by the consulting firm, Accenture, the lifetime value (LTV) of a customer who rents or subscribes to a product is 700% higher than a customer who makes a one-time purchase.
Moreover, offering a risk-free trial period can result in basically new equipment that can no longer be sold as new, thus reducing waste and increasing customer satisfaction. According to a study, an average of 20% of products are returned during trial periods.
Creating high-quality products also increases employee job satisfaction, as they take pride in the products they are making knowing that they are durable, useful and eco-friendly. In fact, a study on life expectancy of home fitness equipment vs commercial fitness equipment found that commercial fitness equipment lasts five times longer than home equipment.
As and example the global fitness equipment market is growing, with an estimated market value of $17 billion in 2020, and is expected to reach $25 billion by 2027. Fitness equipment is a perfect example of something that shouldn't be bought, turned into a coat rack and discarded. High-quality gym equipment can be moved from one person to the next for 10 years or more. The further benefit to the consumer is they will recieve a more enjoyable and higher quality work out.
In conclusion, switching to a rental or subscription model can have a significant impact on reducing waste and pollution, while also providing economic benefits for manufacturers, customers, and employees. High-quality products designed for long-term use result in higher customer satisfaction and lower warranty claims, and a risk-free trial period can increase the chances of customer satisfaction and reduce the number of products being returned. By changing the model, we can change the world. It's time to shift our economy towards a more sustainable model, one that prioritizes the well-being of our planet and its inhabitants.