I approached the two concepts separated from each other. They could also together be one concept. The sleeve can be used within the leasing model. Sticks will have a longer technical life, which is a benefit for the leasing club, as they can sell their sticks more often. Sleeves will be a product used by the leasing clubs. When looking at the price estimation this will mean per use of a stick a maximum of €4,- is added to the cost price, this taken with the assumption that one sleeve will last one season. When someone leases a hockey stick this will mean that the person gets the hockey stick with a new sleeve every season.
A financial model has been made for the leasing model. Next to the depreciation of the stick each season, costs need to be added for every new use of a sleeve. Sticks can be used for a longer period so the depreciation costs will be lower. Gradation system is deleted, as all the sticks look if they are in the same state. One loop is made as can be seen in the figure beneath. The price of leasing a stick with sleeve will be €11,95 per season.
Kids grow in their youth. This is a big reason why kids need a few new hockey sticks during their playing time as a kid. On average three to four new sticks are bought when kids overgrew their old ones. This over a span of six years. Nowadays all these sticks are bought for the kids, and when they are not necessary anymore they often end up near the cloak hanger. These sticks are often still in a good state to play with.
With a leasing model, no sticks will be owned by the people themselves. The club will own all the hockey sticks, and players can ‘lease’ them for a certain period. Providers of the leasing system in this case are the club representatives. Contracts are drafted per season, and can be extend after each season. Other options after the contract are ending the leasing or buying of the used stick. In the contract will be written about improper usage of the stick. Damage by improper usage will give a penalty. The leasing service will cost €13,95 for gold, €9,95 for silver or €7,95 for bronze, according to what class people want to buy. The profit margin for the club is on average €3,- per leasing contract. The amount of money payed each season after six years will be less then buying all sticks new. Each class stands for the degradation of the product.
Gold: new sticks
Silver: paint damaged and small scratches, grip is not damaged
Bronze: hook is damaged and worn off to a maximum of 3 mm lost of material
Benefits of the leasing model are that no unnecessary sticks will stay at the cloak hanger, kids can get a new stick with a different length when they overgrew their old stick and a full service can be provided for hassle free use of the hockey sticks.
In the first weeks of the project circular design strategies were discussed. These strategies are also incorporated in the final concepts. With the leasing system no new design for the stick is made and therefore I found it difficult to relate strategies back to the leasing service. The sticks do get back to one place, and have the chance to be repaired whenever small damage is found. The strategy ease of maintenance & repair is in line with this.
Time to market can be really fast, as no new products has to be produced. The big investment to start leasing hockey sticks for clubs is getting a good amount of hockey sticks at the club to lease. Marketing could help get extra used sticks when starting. For example, people who give their old sticks to the club when they start leasing could get discount on their leasing contract. This could also lead more people to leasing hockey sticks. Competitors in this case are the stick fabricants. Because the hockey sticks get reused more often, less hockey sticks will be sold in general. Cannibalisation of sticks will take place.
The leasing service helps in a circular economy as sticks get reused to their full technical life. Also will the sticks end up at one central point. If there will be a possibility to recycle the hockey sticks, they can easily be collected.