Subscription pricing idea

@Rob_at_Onto bit of an idea for you in relation to the Subscription pricing… (@Adam_at_Onto tagging you as mentioned)

I note from meeting you today that you mention that moving to anything more than a 1 rolling monthly agreement brings in legal and business model issues which without going into detail here, when you explained it made sense.

So, as a possible workaround I’ve thought of this idea, I’ve had a look around and can’t see it being suggested yet, sorry to anyone who’s already suggested this and I’ve missed it!

The problems/issues…

  • Can’t do longer than 1 month agreements
  • Customers want cheaper subscriptions
  • Customers are willing to commit for longer for cheaper subscriptions
  • Technology limitations can be an issue so an idea needs to be easily implemented.
  • More car swaps cost the business more money
  • The longer the customer keeps the car, the better and more security it brings from an income stream.

The solution…

A tiered subscription model for the customer depending on their car model…

Example…

The Zoe Iconic on it’s new pricing structure is £439 per month.

If the customer is looking to have the car for a longer term, when they reach certain milestones, the monthly price for that car would drop, but if they swap car, they reset to 1 or 2 tiers down and have to work their way up the tiers again, e.g.

(this is all from continuous subscription, not broken up and the pricing I’ve used below is the new vs old pricing as a way of bringing it down)

T1 - Months 1 to 3 - £439 per month
T2 - Months 3 to 6 - £429 per month
T3 - Months 6 to 9 - £419 per month
T4 - Months 9 to 12 - £409 per month
T5 - Months 12 - 18 - £399 per month
T6 - Months 18+ - £389 per month

This to me seems possible as you already reward users who are 6 months in for the rewards points, so if you can track the length of time someone has been with you, it should be relatively easy to track how long someone has been with you and their subscription length etc?

Obviously you’ll have little details to work out, but as a rough idea, I wonder if this would work?

This way, you’re not contracting people into yourselves so you remove the legal and business model issues, but you’re creating an alternative to it which is if the user opts to stay longer, you pay that back in return because the customer is giving you a more reliable income stream.

If you kept the customer on the new pricing the same for 24 months that would be £10,536 to yourselves

On the model I suggested it would be - £9,816

So only a difference of £720 less to you, but something of an incentive to the customer that makes them want to stay with you for longer as they will be rewarded for staying with you

On the old pricing for 24 months, this would be £9,336, so you’d still be making an additional £480 on the new model I’m suggesting

Clearly my pricing is more towards the cheaper side to the customer, the exact numbers would be something you’d have to come up with

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Someone posted the Series B funding slides the other day which showed that the typical ONTO subscriber stays for 12 months or longer so I would imagine the pricing currently reflects this and the ability to reduce it anymore would be limited.

In this example it would only to be reduce it back down to the original pricing, instead of making it lower than before

I understand but it seems the original pricing is the issue, I think the current/new pricing is the base price now, this is the price they’ve set knowing customers typically stay for ~12+ months, by the sounds of the meet up that price a necessity currently which is why if hes not willing to do a u-turn I can’t see they’d structure it like this, its a good idea but I can’t see how he could do it already knowing customers stay for a long time so by doing this they might as well just go back to the old pricing etc.

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I’d envision this would something that they’d have a blanket start on for everyone, no matter who and how long someone has been with them already to help them with cashflow.

I would give up my InstaVolt and bp pulse cards .

I think the shell card have the most value compared to the other to and access to X amount of chargers

But your Instavolt and BP cards aren’t costing anybody anything whilst they’re sat in the car not being used. So by not using them, it’s surely the same cost as simply not being issued with them?

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Hi @flipflap good to meet you and speak today. Unfortunately any sort of tiered pricing system based on time you’ve had a car is in effect ‘locking in’ a customer, so wouldn’t be something we’d be able to do. We are also keen not to dilute our offering over time into becoming a more typical lease - we really see the one month commitment and all-inclusive package as fundamental and something we don’t want to touch.

I’ll also take back to the team a few of your other ideas and suggestions raised at the event and follow up.

hi @Apriliamgt - appreciate the idea but more than 50% of our customers use more than 1 charge point in a month and the coverage can vary with each depending on region (the usage split between each is actually fairly even). Offering as seamless a charging experience as we can is something we want to stick to - when we had only one network it was one of the biggest complaints we’d get.

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Thanks @Rob_at_Onto. Would you consider introducing even lower milage options? i.e. 500mils for a cheaper fee?

Hi @Rob_at_Onto just sticking my head briefly above the parapet to ask if developing the rewards system in some way (Loyalty bonus for example similar to the 6 months award) may be something you could achieve within your business model? It may assist mileage bolt on users etc.:older_man:

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Thanks for the response.

I definitely would love to hear other idea in mind so people could pay the higher rental monthly amount, but also keep that 1000 miles per month .

Totally get it differs from customer to customer , but would be interesting to hear ideas you might of been throwing around that could work for your business and obviously to make it work for others

@flatw8 - we did consider this - so that in effect there were no price rises but the mileage allowance started at 500 miles/month. However with the average mileage of customers above this, we didn’t think it was right if more than half of customers needed a bolt-on. Personally we don’t like the typical ‘low monthly fee’ you see advertised for something that customers in reality will not pay, once they go through the registration process. 750 miles felt the right point given its in line with the average miles driven generally by motorists in the UK and as it means the vast majority of our customers will not need a bolt-on, especially with any unused mileage in a month rolling over.

@Grandadgeorgec @Apriliamgt - we are exploring exactly this, as we think there could be ways we can add to/improve the rewards.

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Agreed, but I think the complaints are more aimed at the awful network that was offered, BP Pulse / Polar is, without doubt, the worst network available!

If you had Shell as the sole supplier, I doubt you’d get any complaints!

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This was my thinking.

Yes the SHELL network is most likely the most costly as it’s the most available network to most people .

I would assume that you still as a company have to pay “something” to bp and InstaVolt even if those chargers was not used .

But as you say, where 1 network in one area would suit, the other next work might not suit that person: so it’s catch 22

I honestly would have zero issue with Instavolt and BP being dropped like a hot potato in favour of Shell, IV’s new chargers are awful and BP… well, do I need to expand?

Personally I’ve never used the cards provided, I use my own charge place Scotland card, is abit of a waste giving out the cards to Scottish customers because it’s all charge place Scotland chargers for the most part up here, there’s 1 instavolt charger where I live but it’s never worked and it’s in the worst location possible

A PLEA :flushed: AND A BIT OF A RANT :frowning:

It seems for everyone who tells you ABC’s Rapid Chargers are awful, you’ll find a contrary view anyway:

Talked with someone having the InstaVolt/E-Up! Frustration today…

I’d be equally frustrated if I couldn’t factor an InstaVolt into any longer trips I was planning and cannot remember one that didn’t work.

BP in my area has one Rapid that I don’t bother with but others are tucked away and hardly used, but likely available - including the secret weapon for Beaconsfield M40 services which is so under capacity with two other brands.

And my nearest Shell spends more time broken than alive, despite being one of the latest units.

Then the excitement having GeniePoint quickly subsided when I found they mostly don’t work either.

I’m in the “no-possible-home-charging” cohort. And I KNOW that we’re all subsidising each other somewhere between insurance, logistics and CHARGING. But honestly, it’s the latter which would be close to the deal-breaker for me in the current shambles of a charging landscape.

So I get slightly depressed where this pops up in the Community, because we should all have access to everything as a goal - yes including me subsidising people to use Charge Scotland the day in the future that becomes the most expensive network in the British Isles despite me not needing them.

The philosophy, which I fully endorse, is to get as many people as possible to taste and adopt the new way of EVs with as much support as possible.

Can we possibly stop the “I don’t need XYZ card” because, logistically it ain’t going to be one service for me and a different service for you - Onto just COULD NOT RUN THAT NOW! …and you knew the reason you have THREE cards when you first clicked on Onto’s website and had your own personal dream of the sunny uplands, the clean air and the shiny new milk float on your drive/road/allocated parking space…

Thank you for bothering with my rant :flushed::wink::slightly_smiling_face:

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All very well unless you live in an area where there are hardly any Shell chargers and Instavolt is your best bet…

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So I would go from having 14 chargers near me to 1 which is a pile of rubbish and its a GeniePoint, that would make me move quite quick, and look at cheaper options where I pay for charging myself…

Charging across the networks is one of OntO’s USP’s

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It’s a shame the charging cards can’t be a bolt on. Have the physical cards but unless you have the £80+ bolt on active they don’t work. Not sure how easy it would be to activate/deactivate them from ONTOs perspective

I’d then use them when on long trips but otherwise save money and use home charging

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