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9 Types of Repeat Business

Repeat business is a customer who buys from a firm regularly. This tends to be important to sales. It's not unusual for a firm to make more than 90% of its revenue from customers who purchase frequently. The following are the basic types of repeat business.


Goods that are quickly used up such that they must be repeatedly purchased by customers such as fast moving consumer goods. For example, a vegetable shop may sell to the same customers every day as vegetables have a limited shelf life and are ideally consumed immediately.

Razor & Blades

A business model whereby a durable good is sold that requires proprietary consumable goods. For example, a printer that is sold cheaply that requires regular supplies of relatively expensive ink.

Loyal Customers

A customer who is loyal to a brand, product or service. For example, a bicyclist who buys the same brand of bicycle every 2-3 years.


Services offer intangible value that takes no physical form. This tends to lend itself to repeat business as nothing physical builds up when you use a service. For example, a chain of hotels with a large pool of loyal customers who are attracted to a high level of customer service and rewards from a loyalty program.


Subscriptions that automatically result in recurring revenue. For example, a software service that charges $14 per user per month such that a business customer with 1,000 users would be charged $14,000 a month until they cancel the subscription.

Cross Selling

Cross selling is the process of selling additional products and services to existing customers. For example, a mobile phone manufacturer who uses their platform to sell apps, media and content.

One Stop Shop

A business that offers significant product variety such that customers view it as a convenient source. For example, an ecommerce platform with millions of products that saves customers the time and effort of dealing with multiple shops with far less selection.

Two-sided Market

A market that connects buyers and sellers without directly selling anything. For example, an auction site where much of the transaction volume is driven by active buyers.


A business repurchase of a supply that has been purchased in the past. For example, a manufacturer of bicycles may rebuy components and parts several times a week to keep a production line running.
Overview: Repeat Business
A customer who buys from a firm regularly.
Related Concepts

Business Models

This is the complete list of articles we have written about business models.
Added Value
Augmented Product
Bricks And Clicks
Business Markets
Business Products
Business Services
Club Goods
Coercive Monopoly
Collective Business
Complement Good
Consumer Business
Consumer Goods
Consumer Services
Cottage Industry
Creative Services
Digital Business
Digital Services
Convenience Good
Gig Economy
Middleman Cutting
Global Business
Designer Label
Haute Couture
Digital Goods
Long Tail
Fast Fashion
Market Maker
One Stop Shop
Managed Services
Used Goods
White Label
Modular Products
Original Equipment Manufacturer
Razor And Blades
Store Within A Store
Two Sided Market
Utility Computing
More ...
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