If you run a subscription business—whether it's for bikes, baby gear, home appliances, or anything in between—you’ve likely been asked the question: “Can I just keep the product?”

What is a buyout in a subscription model? A product buyout happens when a customer decides to keep the product they've been renting or subscribing to—either at the end of the subscription period or during it. Instead of returning the item, they pay a final amount to own it. Buyouts can be automatic, customer-initiated, or offered on request, depending on how the business is set up. They’re common in models where ownership may be part of the value proposition or where logistics make returns inefficient.

TL;DR: Everything you need to know about buyouts in subscription models

• A buyout is when a customer decides to keep the product instead of returning it at the end of the subscription.
  
• Customers often expect this option especially if they see similar offers elsewhere.
  
• Offering buyouts makes sense if you’ve already recovered costs, don’t plan to reuse the product, or use a “subscribe to own” model.
• offering buyouts doesn't make sense if you business plan is dependent on recorvering costs through multiple use of the product, products are to be swapped and upgarded frequently, products are offered for short term usage.
  
• Buyouts impact operations: billing, inventory, payment processing, communication, and reporting.
  
• You can offer buyouts via self-service (ideal) or manual request (case-by-case).
  
• Pricing strategies vary—full deduction, partial, fixed fee, or symbolic buyouts.
  
• circuly helps automate every step of this journey for a clean, scalable process

In the image below you see how existing players like StrollMe, Bike Club, Swapfiets & Grover address the topic of buyouts for subscription products and have included information on the topic on their FAQ page.

• StrollMe, a subscription service for kids' products like Strollers, does not offer buyouts.
• Bike Club, a kids' bike subscription service, also doesn't offer buyouts.
• Swapfiets, a subscription business for bikes & eBikes, also doesn't offer any buyouts.
• Grover, a subscription model for tech products & electronics, does offer buyouts.

So the questions is how do companies decide whether or not they want to offer buyouts for the products they offer on a subscription basis? Or perhaps you are starting to see requests from your customers to buyout their subscribed products.

Whether you’re still shaping your subscription strategy or responding to growing customer expectations, this guide will help you decide if buyouts make sense for your model, what to consider before offering them, what operations they affect, and how other subscription companies are approaching them.

Do customers ask for buyouts even if a subscription business doesn't offer them?

Yes. Customers may still request to buyout their subscribed products even if a business doesn't offer it. Bike Club Germany shared a similar experience.

“We only get the occasional request to buy out a bike. I believe most customers are aware of the concept of a Bike Club by now. Additionally, buyouts for kids' bikes are not as attractive as they are for adult bikes. By the time you would typically buy out a rented product, the kid is most likely ready to exchange for the bigger size.”

— Franz Niebler, Director of Operations at Bike Club Germany (in an interview with circuly)

Even though Bike Club doesn’t promote buyouts, they still get asked about it. And that’s a key takeaway: whether or not buyouts are part of your core model, customers may still expect the option, especially if other services they use offer it.

What is Bike Club's strategy regarding buyouts? Bike Club doesn't offer their customers the option to purchase the bikes but accommodate the request on a request or use case basis.

Why are customers interested in buying out their subscription products?

Since subscriptions, especially in the DTC and B2C world, are still relatively new, most consumers are still wrapping their heads around the idea of access over ownership or using a product for a fixed duration of time and returning it at the end of the subscription term.

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In our experience, here are the most common reasons customers want to buy out a product:

• They’ve seen it before. Other companies market their subscriptions as “subscribe to own.” If a customer has experienced that with another product, they may expect it from yours too.
• They see it as payment in instalments. Some customers view subscriptions as a path to ownership—just spread out in monthly chunks.‍
• They want to skip the hassle. Returning a product takes effort. If they’re happy with it and feel like they’ve paid enough, they’d rather just keep it.

When does it make sense to offer a buyout, and when it doesn't

In our experience from talking with different subscription companies and discussing their strategy on how they’ve set up their business model, here’s what we can tell you:

Offer buyouts when:

1. You’re marketing with a “subscribe to own” angle
If ownership is part of your value proposition, customers expect this option.
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2. You don’t have repair & refurbishment capabilities‍
If you do not have a repair or a refurbishment team and if you do not work with any third-party provider to get the products repaired or refurbished, then it really doesn't make much sense for you to get your products back. What would you do with the returned products if you do not plan on repairing them and putting them into the next rental cycle?

If you only started with the subscription or access model to provide more purchase options or rather flexible purchase options to your customers and to increase the number of orders you are getting, then you can definitely offer buyouts.

3. You have a product with emotional value
We learned from Bugaboo & Nomadi that even though kids' products often carry emotional value, many parents are now rethinking the need to own them. Still, it’s not always black and white. If your customers are asking to keep the product and the financials make sense—based on cost, usage, and already-recognised revenue—then offering a buyout can be a great way to meet your customers where they are.

4. Your customers stay subscribed long enough to cover your full costs

If you're confident you’re getting both your product cost (CAPEX) and operational expenses (OPEX) back during the subscription term, offering a buyout at the end could work well. This is especially true for companies using subscriptions to make purchasing more accessible, like LG — where customers keep the product after a defined term.

Avoid buyouts when:

1. The product’s value depends on multiple rental cycles
If your entire business model depends on renting the same product out to multiple customers, then selling it off early can hurt your bottom line. In this case, it’s better to get the product back, refurbish it, and put it into the next cycle. Example: Bike Club, Grover, StrollMe, Swapfiets etc.

2. You do have repair and refurbishment capabilities and plan to reuse the product
If you've invested in logistics and repair to circulate products multiple times, offering buyouts could actually limit the product’s lifecycle. You’d lose the opportunity to maximise its usage.

3. The product is designed to be swapped or upgraded regularly
Like in the case of Bike Club, where kids outgrow their bikes fast, parents expect to upgrade as their child grows, not keep something that no longer fits.

4. You're offering short-term or seasonal rentals
For items like skis, event gear, or holiday-specific products, ownership isn’t usually attractive. People just need the product temporarily, and keeping it adds no value for them.

After discussing when to offer buyouts and when not to, let’s look into the operational dependencies. 

Business operations affected by buyouts

Buyouts might seem like a simple customer action, but they create ripple effects across multiple parts of your business. Below is a quick overview of the areas impacted when a product is bought out—before we dive into the details:

• Calculating the buyout price
• Processing the payment 
• Communicating with customers and keeping them informed
• Managing the inventory
• Providing the needed experience and process

1. Calculating the buyout price

There are different ways to calculate the buyout price, and which one you choose depends on how you want to structure your revenue and manage customer expectations:

• Full deduction: The most straightforward approach — deduct all previously paid subscription fees from the product’s retail price.
  
• Partial deduction: Want to keep some margin to cover operations or depreciation? Only count a percentage (e.g. 80%) of the total already paid.
  
• Fixed price: You can also define a fixed buyout price upfront in your terms — no calculations needed later.
  
• Symbolic price: If a customer has already paid more than the retail price, you can let them buy the product out for a symbolic €1 — just to close things officially.

Whatever method you use, the most important thing is to make it clear to your customer before they reach the decision point.

2. Processing the payment

Once the customer agrees to buy out the product, the payment should be processed without friction. Here's what that looks like:

• For individual customers, the system should charge the saved payment method (credit card, SEPA, etc.) automatically.
  
• For B2B customers, depending on your setup, you might issue an invoice or allow payment on terms.
  
• If the payment fails, there should be automated follow-up — reminders, retries, or a backup payment method.
  
• An invoice or payment confirmation should be sent immediately, and everything should be synced to your accounting.

3. Communication with the Customer

This is a big one. Even if your backend is flawless, customers will only remember how easy or confusing the process felt.

• When they show interest: Acknowledge it and clearly outline next steps.
  
• During the process: Show the buyout price, explain how it was calculated, and guide them through each step.
  
• After confirmation: Send an invoice, confirm ownership, and let them know what’s next.
  

Don’t assume the customer knows what’s happening — guide them like you would for a return or upgrade.

4. Managing the inventory 

This is often overlooked, but it’s essential.

• When a product is bought out, it needs to be marked as such in your inventory system. It’s no longer “rented” or “available.”
  
• Every product should be traceable (serial number, barcode, etc.) — so you can track what’s gone out permanently and what’s still expected back.
  
• The customer’s account and subscription data should reflect the buyout clearly — for auditing, support, and analytics.
  
• Your team should be able to see at a glance: which products are active, which are due for return, and which were bought out.

4. Providing the needed experience and process

Perhaps the most important step from a customer point of view is how does the customer journey look for y buyout request that is how customers express their intent to buy out a product-and how you handle that intent-can significantly impact the overall process.

Expressing buyout intent: Self-service vs. special request

1. Self-Service Buyouts (Default Option)

• If buyouts are a standard feature of your subscription model, providing a self-service environment (such as a customer portal or app) is highly recommended.
• Benefits:
  
  • Speed: Customers can initiate the buyout process instantly, without waiting for manual intervention.
  • Frictionless Experience: The process is straightforward, reducing barriers and increasing customer satisfaction.
  • Transparency: Customers see real-time buyout pricing, payment options, and the next steps, making the process clear and predictable.
• Best Practice: Clearly label the buyout option in your portal and provide step-by-step guidance.

2. Buyouts by Special Request

• If buyouts are only available in special cases (e.g., certain products, customer segments, or after a minimum rental period), it’s important to communicate this clearly.
• FAQ & Website Communication:
  
  • Include detailed information about buyout eligibility and the request process on your FAQ or help pages, as this is often the first place customers look.
  • Clearly explain how to make a buyout request-typically by contacting customer support via email or a web form.
• Manual Processing:
  
  • A customer support representative reviews the request, checks eligibility, and processes the buyout.
  • Customer Communication: Keep the customer informed at every step-acknowledge receipt of the request, outline the expected timeline, explain how the buyout price is calculated, and provide clear instructions for payment and next steps.
  • Set Expectations: Let customers know how long the process usually takes and what documentation or actions are required on their part.

Key points to cover in customer communication

• Eligibility Criteria: Who can buy out and under what conditions.
• Buyout Price Calculation: How the price is determined and whether previous payments are deducted.
• Timeline: How long the process typically takes from request to completion.
• Next Steps: What the customer needs to do and what will happen after payment.
• Support: Who to contact for questions or concerns.

Conclusion: Buyouts aren’t one-size-fits-all

Product buyouts can be a powerful part of a subscription model—but only when they align with your business goals, operational capacity, and customer expectations.

Some companies use buyouts to increase accessibility and reduce friction at the end of a subscription. Others skip them entirely to maintain a circular lifecycle or maximise product reuse. Both approaches are valid.

The key is having the flexibility to support whichever path makes sense for you—and the infrastructure to manage it cleanly.

Whether you’re thinking about offering buyouts, already doing it manually, or trying to automate the process at scale, the most important thing is this: don’t let backend complexity block a great customer experience.