concierge-business-model

The Concierge Business Model In A Nutshell

The concierge business model is based on the personal concierge services a business provides to other businesses, employees, and individuals. The concierge business model is one in which a company provides a variety of services to businesses, employees, and individuals. Concierge services were once the domain of the rich and were mostly found in luxury hotels and other such establishments. However, many small business owners are now offering their services to increasingly-time poor consumers with disposable income.

Understanding the concierge business model

The services a concierge provides are extremely diverse and to some extent, depend on the individual needs of the client. However, most provide personal services that help the customer achieve a better work-life balance. 

Examples of services provided under the concierge business model include:

  • Grocery shopping.
  • Laundry and dry cleaning.
  • Travel arrangements such as booking flights, hotels, or rental cars.
  • Home organization.
  • General errands such as taking the children to school or booking a doctor’s appointment.
  • Making restaurant reservations.
  • Small event or party planning.
  • Gift purchasing. 
  • Interior design, and
  • Lifestyle consulting, which may include personal or professional assistant services.

Concierge services were once the domain of the rich and were mostly found in luxury hotels and other such establishments. However, many small business owners are now offering their services to increasingly-time poor consumers with disposable income.

Elements of a successful concierge business model

The concierge business model is relatively simple. Nevertheless, there are some important factors to keep in mind for those thinking of entering the industry:

  1. Consider the market – there are two broad concierge business model categories: corporate and personal. Corporate services include planning business trips and scheduling meetings, while personal services encompass nearly any household chore or otherwise mundane or time-consuming task. In some instances, concierge services may straddle both categories.
  2. Focus on high value – consumers from lower socio-economic backgrounds are not going to be attracted to concierge services for obvious reasons. The focus should always be on middle and high-income earners. Generation X and Millennial professionals also desire concierge services because they like to work hard and protect their leisure time. 
  3. Don’t neglect marketing – it is also important to market concierge services to new and existing clients. The concierge services industry is likely to become more competitive over time, so market differentiation should not be neglected. 
  4. Build the right relationships – like other freelance industries, those who work under the concierge business model may have difficulty earning a consistent and reliable income. It is important the entrepreneur builds the sort of client relationships that result in repeat or long-term business.

Key takeaways:

  • The concierge business model is one in which a company provides a variety of services to businesses, employees, and individuals.
  • Once the domain of the wealthy, concierge services are now popular among time-poor consumers who desire a greater work-life balance. Some of the services on offer include home organization, travel arrangement booking, interior design, grocery shopping, restaurant reservations, and general errands such as dropping children off at school.
  • The concierge business model is relatively straightforward, but concierge providers should begin by considering whether they want to provide corporate services, personal services, or a mixture of both. What’s more, providers should focus on middle and upper-class consumers and not discount the importance of marketing campaigns and long-term client relationships.

Connected Business Concepts

Marketplace Business Models

marketplace-business-models
A marketplace is a platform where buyers and sellers interact and transact. The platform acts as a marketplace that will generate revenues in fees from one or all the parties involved in the transaction. Usually, marketplaces can be classified in several ways, like those selling services vs. products or those connecting buyers and sellers at B2B, B2C, or C2C level. And those marketplaces connecting two core players, or more.

Food-Delivery Business Models

food-delivery-business-model
In the food delivery business model companies leverage technology to build platforms that enable users to have the food delivered at home. This business model usually is set up as a platform and multi-sided marketplace, where the food delivery company makes money by charging commissions to the restaurant and to the customer.

Wholesale Business Model

wholesale-business-model
The wholesale model is a selling model where wholesalers sell their products in bulk to a retailer at a discounted price. The retailer then on-sells the products to consumers at a higher price. In the wholesale model, a wholesaler sells products in bulk to retail outlets for onward sale. Occasionally, the wholesaler sells direct to the consumer, with supermarket giant Costco the most obvious example.

Retail Business Model

retail-business-model
A retail business model follows a direct-to-consumer approach, also called B2C, where the company sells directly to final customers a processed/finished product. This implies a business model that is mostly local-based, it carries higher margins, but also higher costs and distribution risks.

B2B2C

b2b2c-business-model
A B2B2C is a particular kind of business model where a company, rather than accessing the consumer market directly, it does that via another business. Yet the final consumers will recognize the brand or the service provided by the B2B2C. The company offering the service might gain direct access to consumers over time.

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