Americans spend more on subscriptions today than in the past, but they are less aware of exactly how much they squander, according to a recent report from West Monroe, a national business and technology consulting firm.
On average, the 2,500 consumers West Monroe polled spend $273 a month on subscription services, up from $237 in a 2018 poll. However, when asked to estimate how much they pay for such services, poll respondents falsely believed they were spending less than in 2018.
West Monroe asked poll respondents to estimate how much they spend on subscriptions each month before requesting that they tally the precise amount, subscription by subscription.
In 100% of cases, the poll respondents were spending more than they originally estimated, West Monroe says. In fact, 66% of consumers were off by more than $200 a month with their guesses.
In recent years, the popularity of subscription services has only grown, West Monroe says. It notes that subscriptions gaining prominence in recent years include products and services related to wellness, pets and dating. According to West Monroe:
“As companies seek to become more digital, many are developing recurring revenue models based on new apps and changing consumer preferences. Subscriptions for products and services that transcend digital and physical experiences are increasingly popular.”
One example of such services is Peloton’s subscriptions for its fitness equipment and programs, West Monroe says, adding that the number of such subscriptions grew from 543,000 in the first quarter of 2020 to 1.2 million in the first quarter of 2021.
How to cut your subscription costs
Don’t settle for paying too much for subscriptions. Instead, comb through your bank and credit card statements for subscriptions you have forgotten about or don’t use.
Or, check out companies such as Truebill, which do the work for you, finding the services you might be overlooking and canceling them.
Using one of these services is just one of the “5 Automatic Ways to Save Hundreds Every Month.”