Here are two common types of product sales a business utilizes and why both are important:
1) One-time purchase
2) Recurring purchase
A one-time purchase is pretty typical—buy some bananas at the grocery store. Most businesses offer products that customers can buy once and walk away with.
The other type of product sale is a recurring purchase, such as a subscription. In this case, the customer pays the same monthly amount for a product or service until the subscription is canceled.
The value of the one-time purchase is the profit per sale, usually higher than that of a recurring purchase.
On the other hand, the value of the recurring purchase is the high likelihood of a steady stream of income coming in each month. This helps smooth out any bad months of low sales.
Both are very valuable, so I feel it is essential to have both in my business.
Do you have them in your business? Which one is more valuable?