The Subscription Effect
Hey Friends,
You know, the concept of subscribing to a service has been around for centuries, dating back to at least the 17th century. However, the way that subscriptions were used and the types of products and services offered through subscriptions have changed over time.
Today, we’re surrounded by different sorts of subscriptions.
There are subscriptions related to some software, there are subscriptions concerning entertainment like music, tv shows, etc, and there are subscriptions pertaining to things that you read like newspapers, magazines, and other printed material which did exist in the past as well.
There even are subscriptions related to educational services!
In the past, subscriptions were commonly used for magazines, newspapers, and other printed materials. Customers would pay a recurring fee to receive regular deliveries of these materials.
With the internet and digital media rise, subscriptions have become increasingly common for online services such as streaming video and music, software, and cloud storage.
The subscription model has proven to be a popular and effective way for companies to monetize their digital products and services while providing customers with a convenient and reliable way to access them.
But what if, this subscription model was used in an inverse way (in a way that’ll profit the customers more than just the value that they receive) so that you have a better sense of choosing the items you buy which perhaps can save you a couple of bucks if not an enormous amount of money predicted via compounding effect?
The problem
Let’s talk about the problem.
The problem which is gonna be solved using the subscription model if used in a reverse way is considerable.
It wouldn’t be a sin to admit that there was a point in our lives when we came across self-help books that sold us knowledge we already knew but what we actually needed was a subtle recall.
“Rich Dad Poor Dad” by Robert Kiyosaki did that for us when it came to money in the simplest way possible. But why not use think of concepts that we’re already using instead of reading about assets and liabilities?
So the problem is, we buy a lot of things when we have got the cash, or it’s like even when we pay using a card we do spend a lot when it’s for the grocery store we visit; Target, Walmart, Dollar Tree, anything works haha!
Got Coke 1.5$ ah, got Cheetos 1$ yayaya, got Pickles 3.5$ ezz, and it goes on and on…
But wait!!!
What if this was done separately, that too when you’re sitting at your home and doing this online transaction like you’re buying some sort of subscription?
Let me explain. So when we avail subscriptions like Spotify, Netflix, and Google One, we think twice if not a couple hundred times because that’s gonna be recursive. We think about the kind of value it’ll be adding to our lives and if it’s actually worth subscribing to.
But we never give a thought about this while purchasing a 5$ cup of coffee while walking down the street to get to work or the park, do we?
And that’s recursive as well only if we go giving a look at our history of purchases of these small things. This then eventually compounds to a huge cost that is pretty overwhelming!
I call this The Subscription Effect.
The subscription effect
It’s the effect that makes us think a number of times before availing a service, particularly one that is online and that transacts money after a period of time recursively.
We are very conscious of the fact that money is going to be transacted from our bank accounts knowing that we’ve got an option of discontinuing the subscription but still we do think about it.
And this consciousness essentially leads to us saving a couple of bucks, which when seen through the compounding effect — we save a lot!
Now this effect can be applied anywhere in terms of buying something that is a repetitive want.
The other day, my mom got this Listerine mouthwash which was priced at 1.65$. It took me nearly 2.5 or 3 weeks to end up with that bottle of mouthwash. I told my mom about it and asked her for a new one. And trust me, she wasn’t really happy about it. She scolded me a bit and that she now expects me to at least last it for a month.
So it was at this point when this concept sorta hit me.
If you see, I’d now have to pay 1.65$ every month for this mouthwash which is not less than a subscription. But the only thing that’s different here is the fact that I can actually prolong the period regardless of the increment in the cost!
I can avoid using it frequently, in an inefficient way that I’ll take it as, and use it prudently. I’d take an effort to brush my teeth rather than being lazy and just rinsing my mouth. I can even utilize water instead of just using that liquid.
And these couple of ways can help me last the product so that I reduce the frequency of payment, yet even utilizing it.
Which to be honest is astounding!
But what about that 5$ coffee?
Well, we can even avoid a few subscriptions thinking that we’re gonna buy this twice in a month, and that way it’ll be a 10$ subscription monthly, which will compound to 120$ early, which I’ll of course hesitate to give to a software company online haha.
Even those Cheetos, which factually aren’t good for my health, I can be avoiding to buy them and instead eat some real-good and healthy food at home. Which not only saves my health but also money.
And that’s The Subscription Effect!
Conclusion
I think it teaches us more about how we see things, potentially the perspective.
When you do things that are recursive, you’ll discern patterns, and those patterns are pretty useful when studied broadly, even when researched here and there.
From the pattern of spending, I perceived it’s more or less the same when it came to the idea of subscription which now saves me money.
Every purchase you make think if you’re gonna pay for it again? and if yes, does it provide value to you? if yes, can you prolong the period of spending again? and a few more questions that’ll indeed help you analyze it better.
Hence now I am very mindful of the purchases that I’ve to repeat in the future, so I always look out for the possibility of lasting it. And at times a few products aren’t beneficial for me, so that’s just a waste.
It’s just that, we spend way more easily offline than online. Hence we’ve now got the subscription effect handy, you see?
That was it for this one, hope you got to know about a different perspective!
Think about it…
Thank you friends for reading this article, I’m glad hoping that I’ve given some value addition to your life and you can relate to this. Have a great day, and cherish every moment, until next time, peace!
Announcement:
I started a new club called “Seowl” — get to know about this as you click it.
My newsletter distributer is officially shutting down, and hence I’ve shifted it to Substack — consider having a look!
Make sure to check out my podcasts — ThatOneThinker
Kabir Khanuja’s handles — Linktree
