productdienst

Productdienst, or product-dienstverlening, is a business model commonly discussed in the Netherlands and Belgium, where a producer retains ownership of a physical product and provides its function to the customer through a service arrangement. It is a form of product-service system (PSS) aligned with servitization and the circular economy.

Under a productdienst, customers pay for usage or performance rather than for the asset itself. The provider typically assumes responsibility for maintenance, repairs, upgrades, and end-of-life management. This aligns incentives toward durability, energy efficiency, and continuous improvement of the product.

The model relies on clear service level agreements and data-enabled monitoring to guarantee outcomes such as uptime, throughput, or output quality. Payment models include subscriptions, per-use fees, or lease-like arrangements. Digital platforms and remote diagnostics are common enablers.

Benefits for customers include lower upfront costs, access to newer technology, and predictable operating expenses. Providers gain from recurring revenue, higher asset utilization, and a closer relationship with customers. Challenges include high initial investment, risk allocation, data privacy, and the need for new legal and financial frameworks to handle ownership and liability.

Productdienst is a key element in circular economy strategies, supporting longer product lifetimes and better material resource efficiency. It is contrasted with traditional ownership models and has gained traction across manufacturing, equipment rental, and industrial services, particularly in Europe.