TL/DR version: I want to sell videos to businesses, but some don’t have wifi. Do I stick with a smaller customer base and insist on internet delivery to use a subscription model or expand my customer base by providing the videos on flashdrives?
The (fictitious) product: Let’s say I have a series of videos that talk about car safety and maintenance topics. I’d like to market these videos to car repair shops to show in their waiting rooms. Let’s assume that I’ve already validated the concept and some repair shops see value in the videos and are willing to pay for them. My role/job is to create professional looking videos with engaging content and the shop uses their own TV/screen on which to play the video.
Pricing Model & Delivery:
Here’s the problem. In an ideal world, I’d like to sell this based on an annual subscription model. Using made up numbers, the shop pays $495 each year to access the videos which are delivered through internet access. Using a username/password, the shop logs in and plays the video on their screen/tv from the internet. When the year is up, I have the power to remove the video if the shop doesn’t extend their subscription.
The other advantage of internet delivery is that I can update the videos at any time, add/revise content, and can easily customize the videos (e.g., include the shop’s logo or other information to make the videos more customized to each shop).
I also sell printed materials that match the videos (e.g. pamphlets, booklets, advertising, etc.). Because the printed materials help drive sales, they are very popular. It would be rare that someone would want the video, but not want any printed materials too.
The Problem:
But let’s say my research tells me that only about 40% of shops are set up with wifi. If I stick with my internet delivery/subscription model, I am immediately reducing my pool of potential customers by 60%.
A Possible Solution & complications:
One solution is to create the video for the shop and send it to them on a flash/thumb drive. They plug the drive into a TV’s USB port and play the video from the flash drive (some TVs have this ability – cost, maintenance of TV is up to shop – I don’t want to get in the hardware business).
This opens up all shops as potential customers – which is great. But I can no longer use my annual subscription model for those customers. There is nothing stopping them from using the video file on the flashdrive for the next 20 years. In fact, there is nothing stopping them from copying the video and giving it to their cousin in the next town over and letting him use the videos too.
Other possible solutions:
A) have different pricing for annual subscriptions and a much higher price for providing the video on a flash/thumb drive. (e.g. Make subscription be $495 per year, and flash drive version is $2495, but you can use it forever (with no updates). Problem is that shops that don’t have wifi and would need the flashdrive tend to be smaller shops with smaller budgets and I may effectively price myself out of consideration.
B) The "Trust You" Option: I could merely state that regardless of how they receive the information (either online or through flashdrive), that it is an annual subscription model and send reminders to everyone when their year is up. I expect some shops will be honest and some won’t.
C) The Restrict Printed Products Option: Building from Option B, another solution is to sell everything on an annual subscription model, but I restrict sales of printed materials (brochures, etc.) to customers that are up-to-date on their annual subscriptions. That is, if you haven’t updated your video subscription in 2 years, then I won’t sell you pamphlets and other materials until you do update your video subscription (of course, this is only for those customers who get the flashdrives – I can shut down the wireless customers easily).
D) Screw it option: Just go with wireless. The shops that have wifi probably are bigger operations with bigger budgets and they will likely be my best customers anyway. I emphasize that the subscription/internet model provides them with instant updates when new material is available and I can even have “platinum” options where I provide additional customizations/modules for higher prices. This assumes that customers will view the subscription/internet model as having higher value (They think that anything downloaded from the internet must be worth more than something I get sent to me on a flash drive).
Do you see any other options? Factors I’m not considering?