WHAT IS THE FUNCTION-BASED ECONOMIC MODEL ? 

 

The function-based economic model :
Just a trend or a real opportunity for major groups ?
People also speak about use economics because, by definition, it is a question of selling the use that one makes of the product and no longer only the product. Rather than having a printer that will not necessarily be adapted to your needs, each month you pay for a leasing / use agreement adapted according to the material chosen, foreseeable evolutions, the number of sheets printed, the necessary maintenance, etc. … in short, adapted to your use. That’s how it all started for Xerox. The use economics is a strong trend, and this is can easily be seen :
76%
of French people consider use more important than ownership
>> And 95% of them already possess at least one use agreement (while 38% have more than 6 such agreements).
333 billion Euros overall financing method that is well developed in Europe
With a penetration rate that is increasing by almost

30%

Do you really want to miss out ?

This mode of consumption will allow the companies that adopt it to develop a new business model by responding quickly to this real consumer need. Moving towards use economics is a true differentiation strategy, because it allows you : 

TO PROVIDE RECURRING AND PREDICTABLE INCOME

TO DEVELOP YOUR TURNOVER BY INCREASING THE AVERAGE BASKET.

One of the levers used to meet this need is the long-term lease or,as it is more commonly called, leasing:  you pay a monthly sum, over a set period time, for the use of a product and possibly also for associated services (insurance , maintenance, accessories, consumables …).
Do you want to know more ?
Thanks to this approach to function-based economics, it is possible to make high-end products accessible. An electric city bike costing €1,190 can be rented starting at €30,50 / month. This is perfect for the person who wants to gradually get back to doing sports by, for example, biking every day to work. Do you have medium or high-end products ? Long-term leasing allows you to expand your clientele and offer additional services.  Adding insurance, maintenance, accessories, connected health objects or guarantees etc. to your product allows you to create a complete package.  In the world of tomorrow, we can imagine that every Wednesday you will borrow (for a price), your neighbor’s bike that he, in return, he will rent your lawn mower occasionally on weekends!
This is an approach made possible by function-based economics.

Are you looking to conquer new markets

(or strengthen your presence in a market) ?

 

the transformation of your business thanks to the long term rental is for you if:

  • You have medium and high-end products
  • You can associate them services (by selecting from our library)
It is not for you if, on the contrary:

  • yours is a low-end product and you’re only looking for profit without taking care of customer experience
If you want to start your digital transformation, contact us.
We will answer you within one business day :

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