Not that long ago, subscriptions were reserved for the local newspaper or your favourite magazine, and, for a privileged few, satellite TV (complete with backyard satellite dish). Now a subscription is available for just about everything.
From underwear to software, the subscription model is the “set and forget” way to do business.
While subscription services are an increasingly profitable set up for companies, it’s not so kind to the average consumer. It’s a model which relies on passivity. Automatic debits, updated content each month, the constant promise of outstanding value, and cleverly timed marketing mean most people postpone cancelling. Even when they probably should.
We no longer own the software we require to design, publish, or produce. Instead, we pay monthly fees to access it. Businesses justify this by claiming it offers automatic updates and fewer bugs. For big business it means less risk of piracy (their biggest cost) and higher profits, but for consumers, it has become an endless stream of seemingly small charges that actually amount to quite a bit overall.
Online media subscription services are, without a doubt, convenient with unlimited access to endless content from music and audio books to programs to watch. But if you’re not consuming a significant volume of content each month, it is often better value to hire content on an ‘as needed basis’ or purchase outright and avoid the trap of the direct debit which over time could be worse value overall.
Even my local vet has joined the subscription bandwagon with a monthly direct debit. A monthly plan that costs about the same as my own personal health insurance is designed to cover potential vet visits over the course of the year. It’s presented as a “saving,” especially if you end up having to take your dog to the vet for ongoing health issues. Not knowing if we were going to end up with a problematic pup or problem free pup, we decided to give the membership a go for his first year. He’s just turned one and he’s seemingly a healthy dog without allergies or gut issues so we're planning to drop the membership when the time comes for it to renew.
My favourite organic juice and whole foods delivery service now offers up to 20% off for subscribers. It’s a significant and rather tempting saving for expensive consumables which I purchase as an occasional treat. While you can choose the frequency of deliveries, ultimately, I’d be ordering more often than I normally would, so wouldn’t be saving, just spending more money, more frequently.
Like anything, when you’re paying regularly for something you wouldn’t otherwise use as often, it’s not saving at all.
How to save on subscriptions
Read the fine print
Before you subscribe or join that new low fee membership check terms and conditions, minimum commitments and cancellation policies. Some memberships (such as gyms) have a cancellation fee if you cancel your membership before your minimum term ends.
Set reminders for renewals
Add annual renewals to your calendar so you can reassess before being charged again. Also check if subscriptions automatically roll over each year or if you get a notification ahead of time along with the opportunity to cancel beforehand. Put reminders in your calendar a few weeks before each subscription is due to rollover so you can be ready to cancel if it’s not giving you real value.
Do an audit
Don’t sign up for any new subscriptions or memberships for a while as you carefully assess existing commitments. Whether it’s a gym, yoga or fitness app, business strategy group, or wellness program, if you’re not actively engaging and getting value, cancel it. Go back and read the marketing points that lured you in the first place. Have you made good on any of those promises you made to yourself? If not, let it go.
Track your subscriptions
Apps like Rocket Money, Bobby, or Trim can help you see everything you’re paying for and cancel what’s unnecessary. If another app or service sounds too much, a spreadsheet will work just as well.
It’s only free if you don’t pay for it
Take advantage of free trials and rotate between platforms. You don’t need all of them at once. Just remember, free trials are based on the assumption most people won’t bother cancelling once the trial is over. Set reminders to leave if you didn’t intend on paying. Don’t let your complacency be their next sale.
Pay upfront
Sometimes paying a higher one-off fee makes sense, saving you more in the long run especially if you know you’ll use it consistently.
Share family or household plans
Many platforms offer shared or family plans that significantly reduce the per-person cost. Try to spread the cost of family plans so everyone is contributing fairly.
Press pause
Some platforms, memberships and subscriptions allow you to pause for several months or weeks at a time. If you aren’t using the service right now but ideally want to be able to take advantage of it down the track, pause the subscription to help lock in the current price and avoid reactivation fees.
Ask for a better deal
You will likely be contacted by the provider once you cancel a subscription service to ask why you left or what they could do better. Use this opportunity to let them know why you have cancelled and invite discussion or an opportunity to negotiate a better deal.
Step back in time
Borrow books from the library rather than paying to access audio versions online. Watch DVDs instead of streaming films. Meal prep as an alternative to ordering food kits. Swap a fitness app for walking with a friend. Often free or low-tech options come with less guilt, more enjoyment and cost nothing.
The hidden cost of subscriptions
Subscription services rely on you being too busy or disorganised to pay as you need or to cancel. Fitness apps and monthly meal kits promise health and convenience. Cloud storage saves you the trouble of downloading or printing photos, and email storage solutions means you can avoid deleting those thousands of unread emails, at least for now. While convenient, they can also enable avoidance, and those recurring charges are silently draining you of money and, perhaps even, a more simple life.
Endless access will never result in true satisfaction. We now have more content available than any generation before us, along with the pressure to consume as much of it as possible to get our money’s worth. Many of us have multiple memberships we should use (but often don’t), and a growing digital load to manage. When we don’t get the value or outcome we hoped for, it’s more pressure on an already overwhelmed nervous system and can leave us with a lingering sense of guilt. Yet another cost of the subscription economy.
The subscription model isn’t going anywhere, it’s far too profitable. But with mindfulness and intentionality, tracking what you use, and cancelling what you don’t, you can still enjoy the convenience without the financial (and emotional) drain.
Alison Gallagher is a freelance writer, resourcefulness expert and entrepreneur. She has been featured in various publications including Stellar Magazine, Australian Health and Fitness Magazine, and Cleo Magazine. Alison is particularly passionate about sharing practical tips on how to live simply, sustainably and seasonally.
