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The revival of the 1970s was not just about strikes. Consider paying a premium purchase (HP). They are as firmly embedded in the culture of their time as the large televisions that dominated the living rooms of British suburbs. Like electronics, finance has changed significantly over the next half century. But the current suite of services, such as startup Raylo’s “lease and reuse” subscription model, has a retro feel.
The drop in the price of electronic equipment also had an impact on radio rentals, a staple of downtown areas and HP’s purveyor of televisions and video recorders. In 1968, the typically bland console was half the width of a modern console and many times deeper, and cost £304 and 10 shillings, more than £4,500 in today’s money. This means buying at least 4 top-of-the-line smart TVs or 40 or more smaller smart TVs.
Same-day streaming was a dream, as was being able to watch three or more channels in shockingly low resolution. Instant gratification is now one of the key selling points of installment payments. Thanks to Klarna and its numerous ‘buy now, pay later’ services, you can instantly gain full ownership in exchange for a partial payment. A subscription gives you access to everything from streaming to flowers.
Startup Raylo, valued at £100m in its last funding round, is rewiring HP’s history for the 2020s. Charge a subscription fee to provide your customers with the latest gadgets, or refurbish older models if you prefer. It also checks a green box, meaning that instead of ending up in the back of a drawer or a landfill with one owner, the iPhone will end up in the hands of three sets of people over its seven-year lifespan. Masu.
Like radio rentals, Raylo also plays with the times. Since TVs from the 1970s flashed regularly, the retailer has 6,500 trained staff members (more than a third of whom are “fully trained technicians”) who are on hand during repairs. Providing replacement TVs was a big selling point.
The biggest failure of current technology is that it tends to be inferior by subsequent versions. Raylo’s subscription model addresses this issue by allowing customers to upgrade, for example, at the end of an annual plan, or sooner if on a monthly rolling pricing agreement. (Parental Tip: This can also be used on gaming consoles and has a convenient embedded threat that lets you undo it at any time.)
As Raylo expands, it is also looking to securitize its subscription cash flows. It combines a zeitgeist-capturing model with proven funding. That is, of course, as long as it avoids the cliffhanger that culminates in a courtroom showdown over the demise of Radio Rentals’ last venture, Box Clever.
