RWA Series – Subscriptions

Vector subscription business model concept in flat style – pricing plan for app or website service

A few weeks ago I started an adulting series called RWA (Reading, Writing, Arithmetic). The first post focused on Writing using a technique called Bullet Journaling. Today’s post is the second in that series, focused on Arithmetic and Subscriptions.

Subscriptions are those things you sign up and are automatically billed for each month. You don’t even have to think about renewing the service because the company automatically does it for you (by way of an invoice or more frequently an automatic payment from your bank account or credit card). Items that fit this category are: Spotify (music), Netflix (movies), Audible (books), iCloud Storage and the recently popular subscription boxes (wine clubs, book of the month, beauty products). Just about every company has a Subscription model these days and why not, it’s easy cash for them!

The subscription model is a booming field. In recent years, this market has grown by more than 100% a year, increasing from $57 million in sales in 2011 to $2.6 billion in 2016. This is from a recent article in Stanford Business Journal that also predicts that, “Everything you purchase — from transportation to entertainment to groceries — will soon come with a monthly plan.”

Sure, the costs are nominal; but, this discussion is not about being able to afford the service or not. I’m sure most people reading this could sign up for 10 or more of these monthly services and still be ok financially. I say JustSayNo because once you get sucked in, it’s hard to get out. Gym membership anyone? 🏋🏽‍♀️🏋🏽‍♀️🏋🏽‍♀️

Do you remember that infomercial from back in the day about a popular cooking device that had the popular slogan, “Set it and Forget It.” That’s EXACTLY how I think about subscriptions. Often times we sign up for products/services and either use it VERY SPARINGLY or completely forget about it altogether!

When it comes to expenses, they can of course be need vs want; but, the actual payments themselves can also be PUSH vs PULL. When expenses are PUSHED, you consciously send your money somewhere for something you decide you want. For example, I saw Michelle Obama on the Today Show and decided I would like to read her new book, Becoming. As are result of that conscious decision, I purchased her book. Under this scenario, I have just given my money to someone for a product I chose.  Conversely, when expenses are PULLED you unconsciously send money to someone for something you may or may not want to experience/enjoy or chose. Sure, the monthly charge appears small (i.e. $9.99/month for Spotify); but, the real question is are you using the service and getting value from it or do you keep it around as a nice-to-have or because of a “just-in-case” philosophy.  As in, just in case there’s a new movie, book or album I want to partake in this month…

For needs (rent/mortgage, long term disability insurance, student loans, car insurance), I’m completely ok with the PULL technique – it saves me time and energy on things I know I have to pay anyway; however, when it comes to wants (entertainment, luxuries) I prefer to PUSH at intervals I consciously choose.

Didn’t there used to be a time when people wanted to decide where their money went and for what? Now, we’re ok letting complete strangers decide for us?? 🤔 Are they smarter or more in tune with our actual needs, wants and desires than we are? A popular finance blog, MoneyCrashers lists the cons of popular product-based subscription boxes this way:

  • Overbuying – While a subscription box usually costs less than buying all the items in it separately, there’s a good chance you wouldn’t buy all those items if they didn’t come in your box.
  • Unclear value – You get a different assortment of products every month, and you don’t even know what they’re going to be.
  • Problems With Returns – Sometimes companies won’t return/exchange items you don’t use. Most often people just don’t bother.
  • Difficulty of Quitting – As long as the fee is low enough to make it seem like a good deal, it won’t seem worthwhile to cancel the service.

There is a such thing as a subscription hoarder. According to GQ magazine, people spend more than twice as much on subscriptions as they think they do. The average initial estimate was $79.74 per month. The actual average was a whopping $237.33 per month. When companies uncouple your payment from your enjoyment of their product, it’s easy to forget you ever paid.

I currently have one monthly subscription- Netflix – and that’s because we actually use it. On everything else, I consciously choose to pass. Don’t get me wrong, all subscriptions are not bad; however, the adulting tip of the day in this RWA series is that when it comes to subscriptions, choose wisely!!!

What are you paying for every month?

College Football Confidential

I had no intentions of writing a 2nd blog post today (you can read the 1st one here). But while watching Mike & Mike this morning I heard the results of ESPN The Magazine’s College Football Confidential Poll 2015. The poll includes insights from 99 college football athletes who were asked questions about coaches, teams and players. Now, given that today starts the 2015 College Football Season I couldn’t resist. I immediately picked up my iPad, fired up my Next Issue app, opened the September Edition of ESPN The Magazine and dove right in (page 28 if you want to read it yourself). In this post I’ll also give you a few resources to stay abreast of #AllThingsCollegeFootball First, the results of the poll.

results

Any surprises? Not for me. Hopefully your favorite team is mentioned. If not, you can watch mine #RollTide I also want to share the best sites to stay up to date on #the College Footballs Schedule. I like to keep up with the big name schools as well as HBCU’s so I’m sharing two sites. The trophies go to: Onnidan (HBCU focused, also shows Homecomings #turnup) and ESPN (All NCAAF). And here’s the nationally televised game schedule for tonight.

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If you want to see the coolest photos in College football, definitely follow the College Football Playoff Instagram account. They post pictures from all teams in all conferences so you’ll definitely get the best shots and view of the game.

Finally, the video below should keep you highly entertained. You can also wait patiently for Nick Saban to join Twitter. #GoBama #PhyllisForPresident

Christianity2Go

Earlier today my friend/sister/soror sent me photos of a great article in a Christian Magazine (guest post coming soon!) I Googled the title (see Commandment #3) and found that magazine as well as a few others I thought I’d share with you. The good news? They’re all available online! Click on the images below to get to the latest edition on your mobile device!

BTW: I’ve been on this “2Go” kick (for me it means mobility). See Books2Go, Fashion2Go

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