Facility-Based Recurring Revenue

A business model focused on installing permanent products in facilities (like bathrooms, airports, etc.) to create locked-in recurring revenue streams. The strategy leverages regulation requirements and facility contracts to establish mini-monopolies.

Key Points:

• Installation Strategy:

  • Install permanent hardware/products in facilities
  • Create high switching costs once installed
  • Target facilities required by law or regulation to provide certain services

• Revenue Model:

  • Initial hardware installation fee ($500~ example for dispensers)
  • Recurring revenue from refills/maintenance
  • Multi-year facility contracts

• Market Entry:

  • Target regulated spaces (airports, stadiums, schools)
  • Go state by state as regulations pass
  • Secure multi-million dollar contracts with institutions

• Competitive Advantage:

  • First-mover advantage in facility contracts
  • High switching costs after installation
  • Better design/experience than existing solutions
  • Creates "mini-monopolies" in each facility

• Example Success Cases:

  • Clear (airports)
  • Amp Flow (women's hygiene products)
  • Both leverage permanent installation + recurring revenue model