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More businesses are moving away from traditional one-time sales and embracing Product-as-a-Service (PaaS)—a model where customers pay for access to a product rather than owning it outright. Instead of selling bikes, companies rent them. Instead of customers buying washing machines, they subscribe to them. This shift is not just about affordability or convenience; it represents a fundamental change in how businesses create and capture value.
In the latest episode of The ReCommerce Podcast, I sat down with Tuomo Laine, CEO and Co-founder of TWICE Commerce, to explore why selling access is becoming a more attractive business model than selling ownership, how businesses can make the transition, and what the biggest challenges and opportunities are for companies adopting servitization.
At its core, Product-as-a-Service transforms products into services by selling access rather than ownership. Businesses retain control over the product, often bundling in maintenance, upgrades, or insurance. This approach creates steady, recurring revenue and builds long-term customer relationships.
While PaaS is common in industries like car leasing, software subscriptions, and heavy machinery, it is now expanding to consumer categories such as sports equipment, home appliances, and power tools. But not all products fit this model—one of the key takeaways from the discussion with Tuomo is that success depends on selecting the right products, structuring pricing effectively, and managing the logistics of rentals, leasing, or subscriptions.
One of the most eye-opening moments in the podcast was when Tuomo broke down how PaaS increases profit margins and recurring revenue. Instead of earning revenue just once from a product sale, businesses generate continuous revenue over time.
A great example we discussed was bikes. A bike sold for €3,000 brings in revenue once. But if that same bike is rented for €100 per month, it reaches the same revenue in 30 months—after which every additional rental is pure profit. This shift from one-time transactions to ongoing monetization is what makes servitization so powerful.
Beyond revenue, PaaS also makes high-quality products more accessible to customers. Many people may not want to buy a power drill they’ll use once, but they will happily rent one for €30. The same logic applies to high-end fashion, furniture, and even electronics. By lowering the financial barrier to entry, businesses expand their market and increase customer lifetime value.
Another key insight from the episode was that PaaS fosters stronger customer relationships. Unlike traditional retail, where a customer buys a product and may never return, a subscription or rental model keeps customers engaged long-term. This opens up opportunities for upselling services like maintenance, insurance, and premium access, further increasing revenue.
A recurring theme in our conversation was how Product-as-a-Service aligns with sustainability. Instead of products sitting unused or being discarded after minimal use, servitization keeps goods in circulation for longer.
We talked about how PaaS works like an Airbnb for products—instead of one person buying a power drill that sits in storage most of the time, it can be rented by multiple users, reducing waste and maximizing utilization. The same applies to fashion rental services, where luxury garments can be used by many people instead of gathering dust in closets.
For businesses, this means lower production costs and a stronger sustainability message. More consumers are looking for brands that prioritize the circular economy, making servitization a competitive advantage.
One of the biggest takeaways from the podcast was that businesses don’t need to overhaul their entire model overnight. Starting small and testing the right products is key to making servitization work.
Tuomo explained that not all products fit every PaaS model. Some work best as short-term rentals, others as long-term leases, and many thrive in subscription models.
A critical challenge we discussed was reverse logistics—businesses need a system for handling product returns, refurbishing items, and ensuring a seamless re-rental process. Pricing is another major consideration. Companies need to balance affordability for customers while ensuring long-term profitability.
Tuomo emphasized that the best approach is to start with a few key products, test demand, and refine operations before expanding. Many businesses worry about operational complexity, but by beginning with a focused offering, they can minimize risk while maximizing learnings.
One of the most insightful examples in the podcast was trailers—a product that naturally fits into a short-term rental model.
Trailers are durable, require minimal maintenance, and have high demand, making them ideal for rental-based businesses. Most people don’t need a trailer year-round, but when they do, renting is far more convenient than owning.
Beyond the financial opportunity, trailers also provide a unique marketing advantage. Every rented trailer carrying a business’s branding effectively becomes a moving advertisement, increasing brand visibility while generating revenue. Tuomo and I discussed how hardware stores and retailers can use trailer rentals as both a revenue driver and a way to improve customer experience—allowing customers to transport large purchases while keeping the store top-of-mind.
This is a great example of why businesses looking to implement PaaS should choose products that not only generate rental income but also add strategic value, whether through customer convenience, brand exposure, or complementary services.
Servitization isn’t just a passing trend—it’s a fundamentally more profitable, sustainable, and scalable way to do business. Companies that shift from ownership to access unlock new revenue streams, build stronger customer relationships, and increase long-term profitability.
By transitioning from selling products to selling access, businesses can improve margins, create predictable income, and position themselves for long-term growth. The key to success is in carefully selecting the right products, structuring pricing effectively, and managing logistics efficiently.
To hear the full conversation with Tuomo Laine and dive deeper into how businesses can successfully transition to Product-as-a-Service, check out the latest episode of The ReCommerce Podcast:
🎧 Listen on Spotify - 🎧 Listen on Apple Podcasts - 📺 Watch on YouTube
For businesses looking to make the shift seamlessly, TWICE Commerce provides the tools to manage everything from rentals and leasing to payments and logistics. Learn more about how servitization can fit into your business at TWICE Commerce.