hen Disney imagineers begin designing a new park attraction, they use a process called “Blue Sky Speculation.” Blue Sky Speculation forces them to start with a simple question: If I was _______, what would I do?

For example, If I was a pirate, what would I do? Where would I go? Who would I encounter? What items would a pirate buy, and what food would they eat?

Then, rather than just sticking up a simple shuggy pirate ship (which is what most theme parks would do), this deeper process enables the imagineers to build an experience from the ground up. Consequently, it’s only Disney who are able to create truly immersive, memorable experiences that fulfil all our innate aspirations.

This Blue Sky Speculation exercise can also be useful to help a pet care business owner design new and exciting services. So, when it comes to your daycare or boarding services, you could ask yourself, If I was a dog, what would I want to do? What would I want to sniff? Who would I want to play with? What would I want to eat? Essentially, what would a dream doggy daycare experience look like for a dog, and the owner?

The trick here is to start with a blank piece of paper and try to discount everything you do already—and what everyone else is doing. Let your imagination run wild and dream big about what an ideal doggy daycare experience could look like.

You can also use this same Blue Sky Speculation technique to design a better pet business model. Because when it comes to delivering maximum, lasting, sustainable success in your business, the model you choose matters, a lot.

Business Model Rundown

You could adopt a “One-time” sales model, like a car dealership or a retail store. These are typically one-time transactions. However, dog trainers who only sell “one-session solutions” often find themselves with the problem of having to keep finding new clients all the time, which takes time, is expensive and exhausting.

There is a “Fremium” model, where you offer a free, limited version of your service (such as a free day of daycare), which then encourages people to upgrade to take your full, paid offering. These are commonly associated with software and digital services like Spotify, Dropbox or TV services, but they can be used for actual pet services, too.

Then we have “Recurring Revenue” models, like gym memberships, cleaning services or subscriptions such as magazines and dog toy/treat boxes. These are great because you only need to make one sale that brings in steady, predictable income—and it builds a loyal customer base that appreciates the consistent value they receive.

One of the most desirable business models is a “Sunk-Cost Recurring Revenue” model. This would be something like Gillette razors, where people sink an upfront cost into the product (in this case, the handle), then they have to spend money on a recurring basis to get new blades. Another good example would be a country club, where you pay a fee to join, then you pay a monthly fee to be able to use the facilities.

My ideal model for a pet care business—and one I think Disney imagineers would recommend—is the Sunk-Cost Recurring Revenue model. This is also the best way to introduce a membership into your daycare.

Members-Only Daycare

Members only means no one can use your services, unless they are a member. Now, it is possible to switch to a Sunk-Cost Recurring Revenue model without going members only, but if you are maxing out, then going members only is the best option and is worth the extra effort.

Adding a monthly fee to use your daycare is a game-changer for two main reasons:

1. Your business has a recurring subscription income. That means you get a deposit in your bank account of “X” amount of dollars every month before you’ve even turned on a light or leashed a dog. This is money you didn’t have before, meaning better cash flow to pay for more advertising, staffing, CPD, expansion and customer onboarding experience.

It’s worth noting that pet businesses with integrated subscription revenue like this are more appealing to potential buyers, and can command a higher sale price due to the predictable cash flow.

2. The client is paying upfront just for the right to be able to use the daycare, which increases frequency of use. You might think they would use less services if they are paying a membership fee, but you’d be wrong, because they actually buy more services.

Don’t believe me? Then answer me this: Did you spend more or less money with Amazon once you became a Prime customer?

The answer is you spend more! Statista backed this up in 2019 when they reported non-Prime members spend on average $600 a year, and the Prime members spend on average a whopping $1,400 dollars a year.

Client Benefits

Switching to this model also has many benefits for your clients, such as:

• Payments become easier (on subscription).
• Provides peace of mind because they know their dog always has a space at your daycare.
• Promotes an exclusivity factor since only members can use your facility.

You can also offer discounts, but your daycare membership benefits shouldn’t really be about that. Some people will join your membership for the bonus activities, others will join for the member perks and peace of mind, some join for the free “stuff” like the dog’s membership card or the matching member’s-only doggy bandana and human T-shirt, and other people simply join for the recognition that comes with being a VIP member.

Here are some ideas for what you could offer in the different levels of your membership:

Bronze

• Mutt’s Membership Card
• Access to Members-Only Facebook group
• Use of Scent Space once a month
• Weekly 7-point health check

Silver

• Bronze Benefits
• Free bath once a month

Gold

• Silver Benefits
• Choice of weekly add-on service (e.g., training session, spa service, one-on-one play)
• VIP Birthday Party

These are just some examples, and you can mix and match depending on what you already offer. The trick to get clients ascending to higher levels is to put some of the most exciting services in the top level of your membership.

I hope this article inspires you to introduce a membership into your daycare that enhances the dog’s experience, makes the client feel like they belong to an exclusive “club” and boosts your profit margins.

Dom Hodgson is Europe’s leading pet business coach, and is known as the Pet Biz Wiz. His mission is to help pet service providers create superior customer service systems that enable them to build an impactful and profitable pet business. Dom has written over nine books, and is a much in-demand speaker. You can instantly download a free copy of his latest book “How to Disnify Your Doggy Daycare Business” by going to www.petbusinessmarketing.com/daycaremagic