At first, the idea of a company selling you less of their product—or outright refusing to sell it—may seem like a pretty terrible business strategy. After all, conventional practice states that if you don’t sell, then you don’t make money, right? Well, actually, no. More and more companies are flipping this logic on its head, instead opting to embrace a circular business model that seemingly counterintuitively promotes selling less. However, here is where the nuance lies- instead of promoting an ownership-based business model where a good or service is bought as a one-time transaction, they are switching to an access-based model where companies retain ownership and instead of generating revenue by monetising access to their products via subscriptions, leasing or pay per use models. This shift isn’t new—companies like Netflix, Adobe, and other software providers have been using it for years, and now we’re seeing it extend beyond digital products to areas like car-sharing apps, such as Zipcar, where you buy access to a car rather than owning it.
Why An Energy Company Wants You to Use Less - and How This Drives Profit.
Ever heard of an energy company encouraging its customers to buy less of their energy? Sounds counterintuitive, no?
Some energy providers actively encourage customers to reduce consumption. While it might seem like they’d lose money, lets pullback the curtain as the reality is little bit more complex. Energy grids are costly to expand, and demand surges can be expensive to manage. Encouraging lower usage helps avoid expensive infrastructure upgrades and makes the entire system more resilient.
For example, ENGIE (formerly GDF Suez), a leading European energy provider, invests in programs to help customers use less power. Why? Because reducing peak demand prevents costly grid expansion and improves efficiency. By shifting towards energy-as-a-service and integrating renewable sources, ENGIE builds long-term profitability while meeting regulatory and sustainability goals.
Why This Is Smart Business:
- Lower Operational Costs: Reducing peak energy demand cuts expensive infrastructure investments.
- Regulatory Advantages: Many governments incentivize efficiency, helping energy providers maintain profitability while reducing environmental impact.
- Customer Loyalty: Companies that help customers save money build trust and long-term relationships.
Companies that embrace service-based models aren’t just following a trend—they’re future-proofing their business. By prioritizing access over ownership, they increase profitability, build loyalty, and reduce waste. Whether it’s cold storage for farmers, energy-efficient lighting for businesses, or mobility services replacing car ownership, the message is clear: the future of business isn’t about selling more—it’s about delivering smarter.
Selling Less while Profiting More: The Shift to Service Models
The move away from ownership and towards access-based models is a strategic pivot that prioritizes recurring revenue, reduces capital expenditure, and aligns with circular economy principles by extending asset lifecycles.
The Subscription Revolution: Why More Companies are Choosing to Rent, Not Sell (Everything as a Service - XaaS)
Rather than making one-time sales, businesses are adopting subscription models that provide customers with continuous access to products and services. Have you ever rented a car using Zipcar or Lynk & Co? These services offer a monthly subscription to access their vehicle, which includes insurance and maintenance-eliminating the need for ownership. Customers can enjoy the convenience of car use while not being dragged down by the costs of car ownership. The company can retain ownership of the vehicles, allowing them to increase asset efficiency and fleet utilisation efficiently through shared use, extend asset lifecycles, and generate steady, recurring revenue rather than relying on sporadic one-time purchases. This model also encourages sustainability by promoting shared usage, reducing the overall number of vehicles needed, and minimizing resource waste. A win-win-win, no?
The Explosion of “everything as a service” or Product-as-a-Service (Paas)
The traditional model of selling physical products is evolving. Now, more companies are adopting a service-based approach, providing access to their products rather than ownership, allowing customers to pay for only what they need while fostering sustainability and building stronger long-term relationships. The shift toward service-based models is becoming increasingly popular across industries, ranging from critical resources like cold storage for farmers to energy-efficient lighting solutions for everyday consumers.
Rather than selling cooling units or lighting fixtures outright, companies like Cold Hubs (Nigeria) and SokoFresh (Kenya) provide access to cold storage. For small businesses and farmers, the high cost of purchasing cooling infrastructure can be a barrier to market entry. A service model significantly lowers these upfront costs. This expands the market and brings in revenue from customers who would otherwise be unable to afford these solutions. Similarly, Philips’ Signify offers lighting-as-a-service, handling installation, maintenance, and upgrades while ensuring energy efficiency. This, in turn, can foster stronger customer relationships where businesses can maintain relationships instead of chasing new buyers.
In both cases, customers are no longer burdened with high upfront costs, depreciation, or maintenance. Instead, they pay for what they actually use—reliable cold storage or quality lighting—on a subscription or pay-per-use basis. This model arguably transfers the risk from customers to companies, where businesses are now incentivized to design for longevity and reusability—encourgaing better-built products and less environmental waste. When companies retain ownership of their products, they have a vested interest in making them more durable, efficient, and easier to maintain. Instead of selling a product once and never seeing it again, providers can optimise its lifespan, refurbish it, and redeploy it to new customers. This reduces waste, lowers costs, and improves overall profitability. Now, customers can hopefully worry less about repairs, inefficiencies, or obsolescence.
Rethinking Ownership: Moving from Linear Products to Circular Outcomes
So as you can see, turns out it can actually be a smart business move for an energy company to encourage you to buy less, or for a car company not to sell you their car. This shift from ownership to access-based revenue models allows for control over product quality and maintenance, recurring revenue streams, optimized asset utilization, sustainability and resource efficiency and long-term customer relationship development, all while reducing customer burden and closing the loop on waste. It incentivizes companies to prioritize material efficiency and product longevity, as profitability now depends on maximising asset utilisation rather than the volume of sales. This allows for higher profitability by reducing capital costs and having predictable recurring revenue streams.
