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More and more companies are trying to appeal to the masses by offering their potential customers all-inclusive offers that offer unlimited access to their premium services for a one-time payment or a (usually) low monthly fee.

Is this a good business tactic, or do businesses end up losing out in a ploy to attract more customers?

The all-inclusive business trend

Even smaller companies are using the all-inclusive business model that seems to be all the rage lately. But is it really successful in attracting customers and, in the end, do these companies lose or win big? Let’s see some examples.

netflix

Netflix, the online movie, TV show and documentary streaming service that offers unlimited viewing pleasure to subscribers for a low monthly fee, is the best example of a successful all-inclusive business model. After witnessing its billion-dollar success, many other companies, such as Hulu, HBO Max, Amazon Prime Video, Disney+, and Apple TV, jumped on the streaming bandwagon.

Although Netflix has begun as a sort of mail-order dvd rental store, the company has made virtually single-handed video and dvd rental stores obsolete with its new all-inclusive monthly subscription business model. Netflix has removed the need for people to leave their homes, or even their sofas, in order to select a movie to watch. For the price of a few DVD rentals, customers had a plethora available to them per month. There was nothing not to like about this service and as we all know the rest is history.

Kindle Unlimited

With the rise of the e-book, there has been an inevitable decline in print book sales. Fortunately, the printed book is far from finished, with the launch of Kindle Unlimitedthe all-inclusive monthly subscription service introduced by Amazon in 2014 that costs less than $10 per month and offers more than 1.5 million books to readers, the 一print book and any other eBooks not on the library Kindle Unlimited 一 has a little difficult.

But is it worth it? Considering that an average Kindle Unlimited book costs around $2.99 ​​to $4.99, that seems reasonable, especially for avid readers or at least anyone who reads more than two books a month. However, the newer versions are around $9.99 and you won’t find any on Kindle Unlimited. Is it profitable for the company? The business model has virtually no outgoing fees to Amazon per customer, but does provide the ability to promote and market many different books and products for customers to purchase, so it’s a total win-win.

Unlimited cell phone data

In 2011, mobile phone service provider Verizon disappointed many customers when it ended its popular and perhaps too good to be true monthly plan with unlimited data. The good news is that a few years later, in 2017, this plan was back on demand. At that time, other providers like AT&T, T-Mobile, and Sprint were also jumping on board and embracing this all-inclusive business model.

While the success of this service is simply the value for money for customers and the assurance that they will never be threatened by this low data warning, there is another reason why all these companies have jumped into the train of the all-inclusive model: the competition. When Verizon first discontinued this service, they claimed it was not in the best interests of customers because they were actually paying for data they would never use. They quickly backtracked once they realized the contestants would pick up where they left off.

$25 movie tickets with unlimited food

Raising ticket prices from $9 to $25 in a struggling country movie theater in Woodhaven, Michigan, which had been closed for 15 months due to the pandemic doesn’t really seem like a good idea whichever way you look at it, but that’s exactly what owner Jon Goldstein has done… but with the premise that it would be worth it. It changed the business model to all-inclusive and added an all-you-can-eat concession element with unlimited popcorn, candy, pizza, chicken tenderloins and other goodies, but guess what? It didn’t really work.

Movie tickets on the rise have never made it on the list of favorite things for moviegoers. Movie theaters don’t make a lot of money from the ticket prices themselves, and they can only raise prices to a limited amount. But they have to make their money somehow. That’s why popcorn and other concessions seem to be extortionate (and why many like to squeeze in their own snacks), so the idea of ​​a $25 movie ticket without another more cost-effective option probably won’t appeal to everyone. Mr. Goldsten has since withdrawn that offer, and when asked if he would try this model again with another theatre, he said no.

Why the all-inclusive business model works

All-inclusive has always been attractive. The original all-inclusive service, package vacations at resorts or on cruise ships, began to gain popularity in the 1950s, where guests pay a fee and have free access to food, drinks, bars, clubs, private beaches, swimming pools, spas and other luxury services.

An all-inclusive business model works because customers feel they are getting VIP treatment because they have access to all the services a business has to offer, usually for a relatively low price. While it was once popular in sales to successfully extract a large sum of money from a customer 一 who would probably never do business with them again 一 companies today know that all-inclusive services that keep the money comes in regularly are the way to go.

Image credit: wutzkohphoto / Shuttertock.com

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