One-time purchase vs Subscription – What should customers opt for?
While the concept of subscribing for residential appliances is yet to achieve mass consumer adoption, it is still penetrating well and taking over conventional purchasing behaviour. Consumers are getting ready to switch to the subscription model from the ownership model. Everyone agrees it could be a feasible way to bring world-class equipment to customers who otherwise might not be able to afford it or buy it at that time. Although affordability is a key driver for many homeowners, the upfront cost is not always the only justification.
Making it Affordable
Affordability is often equated with price, but we don’t have to look far to see that this is not always the case. For example, many people purchase luxury goods that are outside their budget. In the long run, these products have additional benefits – they remain new over time, or they are built to last longer as compared to similar products with less price. Big-ticket items, like appliances, cars and houses also fall into the category of affordability. Many of us cannot pay in one-time to own these items, so we look for ways that can aid us financially and help us acquire them.
Similarly, home appliances come in various configurations, features and warranties. They are made available in various price ranges to suit all class i.e. economy to pro. HVAC equipment also comes in various efficiencies with the higher efficient equipment providing quantifiable operating savings but at a higher initial cost.
Historically, homeowners had the option of either paying for new appliances in cash or through some form of financing like credit card, banking or finance company loans. An appliance subscription is ideal for homeowners looking to upgrade with little or no upfront cost, at low monthly payments spread over the useful life of the appliance. This is typically much longer than the period offered by most other financing options. Subscriptions also transfer the appliance responsibility from the homeowner(subscriber) to the company meaning that repairs and service costs will be incurred by the company. Such risks and costs can add up over time and make the homeowner realise what they thought was affordable, is very expensive.
Affordability is measured by considering the subscription price with the savings or benefits related to cash/credit payments, energy efficiency, time, performance, or comfort features to the subscription price. A good example of this is a car Subscription, where a manufacturer provides lower payments, periodic service (and in some cases maintenance), even insurance, and the option to trade-in during the subscription period.
When it comes to high-efficiency furnaces, air conditioners, on-demand water heaters, new washers, dryers, refrigerators and many other white goods, the benefits can be seen in the monthly electricity bills. By switching to the high-efficiency appliance, you are helping the environment as well as your wallet. Many of us are paying for that brand-new appliance without enjoying its benefits because energy bills are skyrocketing.
On the other hand, subscribers enjoy every bit of subscription appliances. In addition to lower monthly payments, free standard installation, free disposal of your old unit, and no upfront cost can also be enjoyed by the subscribers. This is a great relief when you don’t have thousands in the bank to spend on a new unit or simply want the dependability of a predictable monthly energy cost.
Subscriptions also offer homeowners to UPSIZE for a small additional increase in the payment. This can allow for higher-efficiency systems that they otherwise wouldn’t be able to afford, or features like internet-connected appliances with displays that save on food spoilage, easy the process of managing the groceries.
The Additional Benefits
Flexible Credit Approval
Do you think your credit score will keep you from being approved? Unlike financing, an appliance Subscription can be more flexible as long as you’re a homeowner.
Help is a phone call away
When you subscribe you don’t have to scramble when something goes wrong. Help is just a simple phone call away. If the issue requires a service technician to come to your home, you don’t have to worry about a hefty bill associated with the cost of materials or labour. You are completely protected by your low monthly fee. In some cases, providers offer Smart Home connectivity that allows them to manage the appliances remotely, like an alarm system, so if something goes wrong they will often know before the homeowner.
If you run into a situation where your appliance cannot be repaired, it will be replaced for free. You never have to worry about the cost of replacing your system. It is all covered in your predictable Subscription fee.
Easily transferable when selling your home
High-efficient appliances with bells and whistles add value to your home, but it also makes your home more attractive when selling. It’s easy to transfer the advantages of your subscription when a new owner buys your home.
Government grants for additional savings
Subscriptions do not disqualify you for government energy grants in most jurisdictions. By Subscribing for qualified appliances, you can enjoy low payments and the upfront government rebate.
HWisel Subscription Program
HWisel offers an industry-leading appliance subscription program for homeowners. Affordability is key but our customers expect and demand seamless service. HWisel subscription comes with our home appliance repair services application, the HWisel App that helps customers book service, manage service calls, track technicians, purchase subscriptions, and much more. We have also developed our own proprietary algorithm that uses HWisel Smart Home devices to monitor in real-time the performance of connected appliances allowing HWisel to receive early notification of impending appliance service needs. We provide HVAC services in the USA and Canada. To learn more about our subscription program and appliance maintenance services, visit our website at hwiseliot.com