For more than a year, the Sofitel hotel near Washington, D.C., has relied on the New York-based subscription flower service H.Bloom for all its botanical needs. Sofitel General Manager Pierre-Louis Renou said his hotel has a monthly budget of $10,000 allocated to purchasing fresh flowers for unique arrangements meant to appeal to all sorts of guests, according to a report by the Washington Post.
H.Bloom CEO Bryan Burkhart says his company, which has delivery services in Washington, has experienced significant growth during the past year, largely because of the Sofitel hotel and other organizations that are interested in subscription services, the news source said.
“We literally started our Washington office in someone’s basement,” Burkhart said, according to the Washington Post. “But we’ve had extraordinary growth and now we have a bustling space that’s half-office, half-botanical gardens.”
Burkhart said the flower industry usually generates about $35 billion each year but has recently been acknowledged as antiquated, the news source noted. For this reason, H.Bloom decided to revamp its business by making it more technologically savvy and efficient.
Small companies like using subscriptions
Burkhart said the subscription commerce model offers H.Bloom a number of benefits. Most notably, it helps the company waste fewer flowers, as the recurring payment model allow the organization to better predict sales, the Washington Post reported.
Subscription business models also allow entrepreneurs to remain more competitive with longstanding enterprises by reducing overall expenses and long-term costs, according to a separate report by NPR.
“[Entrepreneurs] love to have [subscription models] because they can predict how much volume they’re going to have, they know how much revenue is going to come in,” Jim Schleckser, executive at the business-coaching firm CEO Project, told NPR. “And they can build an efficient way of supplying it. So their costs are lower.”
By leveraging an innovative subscription management platform, companies like H.Bloom are able to handle accounts and coordinate deliveries more efficiently.
As the subscription commerce market evolves, decision-makers will need to implement subscription billing and management solutions that help them remain competitive with rival companies.