Three years ago I marched with glee into my local cable provider to return the cable box and broken controls and declared I had beaten “the man” in their own game. I couldn’t believe my cable bill now costs me more than $250 per month, including all the random fees, equipment rentals for outdated gadgetry and taxes. Not so long ago, I paid $250 per monthly for my car. I felt like paying so much for cable service was a crime.
YouTube TV, smart TVs, and streaming services were not only growing in popularity but also here to remain. I chose Google TV and discovered a good Internet provider. The total cost for two locations, not just one, was $80 per monthly. Now I feel like I’m in the lead. The euphoric victory feeling didn’t last very long. I like watching Boston Bruins’ games on television. Google TV did not offer Bruin games. At the time, I had two options: Fobo TV at $65 per month extra or a cable package. See where this is heading!
The Covid pandemic is now upon us. The streaming services soon realized how big the market was. Everyone was at home, and there wasn’t much else they could do but watch movies and shows. This led to the need for different subscription services depending on the shows you wanted. If you are a Kardasian fan, you will need to subscribe to HULU. Want to watch season five of Yellowstone when it comes out? You will need to subscribe to Paramount Network. This list is endless.
Corporate America, combined with the one-on-one sales technique, knows how to hook customers. They know that by presenting you with small choices, you’ll consume their products automatically. The individual subscriptions are only $10 or $15 a month, but they add up fast. This is especially true if your credit card statement is not checked every month.
Since Henry Ford’s invention of the Model T, car dealerships have used this technique to sell cars. How much would you like to pay each month? Never tell them that. You will end up paying too much for the car. Negotiate the price of the car, not the monthly payment.
Your car and the monthly payments that follow are still a major purchase. As consumers, we don’t pay as much attention to smaller monthly payments. We pay for micropayments (also known as subscriptions) without blinking. This is where the concept becomes even more intriguing. Imagine that you visit Starbucks daily to get your caffeine fix. What if you were required to pay all of your Starbucks orders in one go? Would you pay $250 a month instead of $8.50 for each order? I’m guessing you’ll be switching to home-brewed coffee. The total is the same. Like me, most people would reconsider their indulgences just as I did when I reviewed my cable bill. If you look at the numbers, it might not be worth spending $250 a month on Starbucks.
Some services, such as Rocket (formerly TrueBill), do a good job of tracking subscriptions you might not have signed up for. It’s not as easy as the app claims. One click does not cancel a subscription. However, you will be able to see the cancellation whenever your bank or credit card is debited. You can then click the cancel button to end the subscription.
Paying for subscriptions such as streaming services, gym memberships and online purchases with a credit card that has a low limit is another good option. This is a great way to track your spending and protect yourself from fraud.
Bundles are now the norm. Many streaming services are partnered with Peloton and cell phone carriers. They bundle their services. Even bundles with multiple streaming services are available. You can pay as much for cable as you would if you don’t do your research and shop around.
I hope that streaming services and content producers will find a solution easier one day. Apple Music and Spotify both require users to list their favourite artists. Both companies will be able to make suggestions for purchases based on what consumers say. The streaming services should jump on board in the near-future. This is something I doubt will happen.
Contracts for this type of work are extremely complex. Consider the medical industry. The medical industry is responsible for our health and wellbeing, yet they cannot seem to get things right when it comes standardizing simple forms such as medical forms. My advice in the meantime is to track all your subscriptions and cancel those you don’t need. Shop around for the best prices and bundle them again according to your preferences.
