Deeper dive into the economics
Efficiency = Advantage
Give yourself an unstoppable competitive advantage. Our innovative platform harnesses the power of recurring revenue, allowing you to make more money while charging less.
Once you invite a customer to Savvery, their payment stays with you forever. When a customer joins Savvery, they won’t want to pay more to shop elsewhere.
Or Join later:
How will you keep your customers when your competitors join Savvery? You wouldn’t pay double, so why would they?
Savvery gives local businesses an extreme edge because they are paid profit upfront. They have stable income, but you don’t . While you’re busy chasing sales, they are adding new members. You work to pay your bills and they create to keep their subscribers happy.
Sign up to see our onboarding:
Your best customer is a SUBSCRIBER.
<The Inefficiency Tax>
Stop punishing your customers
Opportunity cost is an ‘inefficiency tax’ that retail businesses impose on their customers.
Remember when “Blockbuster” charged a late fee for not returning a video on time? They lost a potential sale so they passed on the opportunity cost to customers.
When businesses impose opportunity costs on their customers, they are essentially adding inefficiency taxes. For example, empty seats in a restaurant or theater, unused stalls at a car wash, or inventory sitting in a store are all examples of missed opportunities. Since the overhead costs still need to be paid, businesses have to spread the expenses between fewer transactions, leading to higher prices for the customer.
Subscription = Efficiency
There are 2 ways to increase profit:
1. Raise prices
2. Increase efficiency (lower cost per transaction)
One of these will improve your demand and the other will decrease it.
Get More Profit, Give More Value
Savvery creates an opportunity for every retail business to charge their profit up front and give their best prices after. Offering unbeatable prices means that you can cover your cost and command the highest subscription fee.
Getting the highest subscription amount means that you are financially free with fewer sign ups.
Savvery creates unbeatable loyalty for your business.
- Once you invite a member, their payment stays with you even if they shop elsewhere.
- You can sell services at cost and still make more profit than your competitors.
- Your competitors won’t be able to compete with your prices.
- When your competitors join, they give your subscribers more value so it helps you!
Retail vs Subscription: The case study
In the early 2000s, Blockbuster was the king of the movie rental industry. With thousands of stores, they seemed untouchable. However, their business model was flawed, and they fell when challenged by a subscription-based rival.
It wasn’t just Blockbuster – all video stores met the same fate because retail cannot compete with subscription.
Blockbuster focused on renting movies for one-time sales and charged customers late fees if they returned movies late. They lost a potential sale when movies weren’t returned so they passed the [opportunity] cost to frustrated customers.
This led to their downfall, losing their $5 billion empire to Netflix. Why? Because while Blockbuster was focused on chasing retail sales, Netflix was signing up subscribers, creating long-range relationships by eliminating opportunity costs.
Even with the advantage of Blockbuster’s 9000 location infrastructure and more convenient service, Netflix’s subscription model quickly caught on. Blockbuster tried to catch up by copying Netflix however, it was too late.
It’s surprising that retail businesses still follow Blockbuster’s flawed model. Movie theaters, for instance, continue to sell one-time show tickets instead of memberships – the same model that sank Blockbuster.
Savvery’s subscription-based model is like a handshake between businesses and customers. Businesses get the maximum profit through subscription so each member gets the best price, ultimately leading to a more sustainable and profitable system. With Savvery, businesses can split their overhead between thousands of customers, rather than relying on a handful.
At $50 / month, how many subscribers would you need in order to have your record year, every year?
Frequently Asked Questions
If subscriptions worked better, why are the biggest, most profitable companies using it?
Remember: food cost and labor cost work differently.
With 30% food cost, you make a profit on each sale at 1/2 price.
Empty tables are 100% labor cost.
Retail sucks because your profitable transactions are minimized by inefficiencies such as empty tables or slower times. Even if you think you have great profits, you’re still missing out in a big way.
Here is an example:
With Savvery, you get $50 upfront.
With a 35% food cost, and an average transaction of $40 ($40×65%), you make $26 in gross profit from a transaction. Your labor and overhead costs are paid from your gross profit. Your customers want to pay for products, not overhead.
With Savvery you make $6 PLUS $50 for a total of $56.
On the 2nd transaction, ignoring that members bring others and spend more, it would look like this:
Normal: zero upfront + $26 + $26 = $52
Savvery: $50 upfront + $6 + $6 = $62
Normal: zero upfront + $26 + $26 + 26 = $78
Savvery: $50 upfront + $6 + $6 +6 = $68
REMEMBER: Savvery is the only option where you get $50 upfront each and every month. Even if you made $50 gross margins on the first transaction, there are no guarantees with retail.
If your customers spend more as members, you will make more.
You are getting more profit with Savvery. Even for your regulars who already spend a lot, they will won’t stop when you give them more value – they will become your biggest promoters!
This as profit insurance.
The more customers you currently have, the more opportunities you have to sell subscriptions.
Why wait until your competitors sign your customers to their program?
A subscription is worth more than a sale and customer who pay full retail every day will never be as loyal as a Savvery member.
Retail is a cycle and you’re either in a high point or a low point. If you don’t lock in your customers when you have them, you’ll be chasing them later.
You can restrict members to increase their value. What is your perfect customer? Do they make reservations or do they wait in line?
- No reservations
- Auto gratuity
- No returns
Even if you never sold a single membership, you could use our additional traffic to fill your vacancies so you kept more profit from your full-paying customers. Empty tables and unsold inventory COST money. You could break even on empty tables so the profit from your customers doesn’t get used to cover expenses.
We are confident that you will find a way to make the most of the people lining up at your door.
The great thing about 50% off is that your selling price can be adjusted to a level that works! Isn’t that what you do when your costs change?
In order to keep things simple, you can simply offer restrictions until you find what works best for your business. Giving less value will only reduce your ability to lock in subscribers at our premium rate!
Savvery works so we don’t ask for anything up front. Keep your money to enhance your business and take care of your members.
We only ask for 10% of the income we are responsible for. We believe in growing with our partners.
Nope! Every subscription goes through a business because we don’t compete with you.
The businesses create the value for subscribers so they get paid the subscriptions!
We are launching a Premium Savvery Membership for businesses that have higher average bill prices.
This program will be more exclusive and members will have to pay $100 / month for these venues.
This membership works as an add on so the business that invited the subscriber will keep their $50 / month.
Referring others to Savvery is very lucrative! 15% of your subscriptions are dedicated to those who promote for you.
If a promoter signs a subscriber to your program, they get 10% forever.
If somebody finds a promoter who uses their reach to advertise your program, they get 5% of the promoter’s sign ups.
We believe in rewarding those who do the work and grow the community. We share the rewards because we are better off when our local communities thrive.
Absolutely! A fundraiser can partner with a Savvery business to sell subscriptions. The business gets the subscriptions and the subscribers can go to all Savvery businesses.
The fundraiser gets special perks for a limited time.
They get 10% of all subscriptions they initiate forever.
Whoever referred the fundraiser would get 5%.
Recurring revenue is magical for fundraisers because one event can lead to 12 annual payments. Doing an event every year would have cumulative growth as they could increase their monthly revenue.
More details here:
Savvery works with ALL offline retail businesses that serve the community.
If your business is open to the public and you have a physical store, we can convert your customers to lifetime subscribers!
If you don’t serve the public and want your own subscription service, we can manage your exclusive program.