own nothing

JR-

I’m wondering if Nothing might also be reflected in the business model. Would it make sense to transition towards a subscription based model where you ’subscribe to an eco-system", including hardware? And that you hence subscribe to any upgrades or new models coming up VS buying on-time-new-hardware

So you actually ‘own nothing’ 🙂

Just a thought process - what do you think?

Cheetosdust

JR-

Interesting talking point.

If I understood correctly, you are mentioning something like the “iPhone Upgrade Program”?

That could be a good proposition for customers who don’t really value building a collection of products that allow them to look back while contemplating legacy devices as pieces of history.

Another aspect of your idea that can be debugged is how the model would work. For example, would you have a tier just for audio products as an entry level and two or three more expensive that would also allow you to upgrade other departments of the ecosystem?

On a more personal note, even if that means using less products, I prefer to buy and own them ad aeternum. When I have total ownership of a product, the payment part of the equation is done and dusted, removed from the back of my mind.

scarbo

Cheetosdust

Totally agree.
Moreover, you would need a solid and reliable brand - built over years of experience - in order to get a profitable number of subscribers (just like Apple).
Then, it’s a good idea, but it could take a few years to make it feasible.

JR-

interesting - didn’t know about the ‘iphone upgrade program’ - thanks for sharing.

And although I’m with you the ‘owning’ part, I still believe that the younger generation (and that’s where nothing is aiming at?) are more comfortable with the subscription/sharing economy. The same is happening for ‘owning a car’, or mobility in general.

And idd, probably you’ll have some sort of tiering on different levels, or possibilities to ‘upgrade’ from nothing to nothing++
And this can be done on the hardware level, but also on the services side. Do you want to increase audio quality? sure, just upgrade your plan. (similar to tesla, the hardware is full option, only limited by subscription)

Could be some interesting paths to investigate 🙂

Cheetosdust

JR- I still believe that the younger generation (and that’s where nothing is aiming at?) are more comfortable with the subscription/sharing economy.

The subscription services are indeed on the rise - companies are trying their best to transform customers into recurring ones - it’s more profitable to have a continuous cash flow than to have a one time buy per product.

JR- And this can be done on the hardware level, but also on the services side. Do you want to increase audio quality? sure, just upgrade your plan. (similar to tesla, the hardware is full option, only limited by subscription)

I think that could work better when Nothing has a catalogue of products associated with software - that way the company could start using bundles, like Apple One, for example.

But to me this is the big question: is a company able to build upon a solid base experience with services without making anyone who can’t/don’t want to use them feel left behind? I do think it’s possible, but it’s a really thin line. 😃

Cheetosdust

scarbo

You are absolutely right.

It’s something that’s built over the years with continuous products - software and/or hardware - that surpass, or at least meet, your expectations.

The first product after the incubation period is almost a leap of faith.

I am not saying that releasing a subpar product is automatically the death of a company. Most likely, everyone’s favorite brand in each product category has had a bad launch, but the willingness to pay for something recurrently is about the idea you have of a company as a whole.

It’s not just its identity, but a brand’s perception is built upon the proof the last release was not just a fluke. When you continuously reach that plateau, then people will try your services because they expect a seamless continuation of what they have experienced before.