When you are evaluating different service offerings and ask, “How much will it cost me a whole year.” It is easy to see for a low monthly payment and savings especially in real big when it is actually a bad deal.
Cars are a good example. Pay $ 250 per month to rent a nice car does not seem much, but considering that is $ 3000 per year into a vehicle that does not own, does not seem a great bargain, especially considering you can get a reliable used vehicle for $ 4,000 to $ 8,000 that can be driven for several years and then sold several thousand dollars.
Membership programs are another area of the coast, where it is easy to spend a lot of money. I was looking at a health club membership this week and was about $ 80 per month per person. So for two people that comes to $ 1920 per year. Now if you spend 5 or 6 hours per week in the gym with the team, swimming, tennis, etc. might be good business. But many people would be better spent on a stationary bike or weight of origin established.
For the evaluation of membership programs of this type, I suggest you look at how much you pay per hour. If you pay 80 per month for access to the gym and go to one hour per week, you’re paying $ 20 per hour to use the gym. To me, that seems a bit high. If you are spending an hour a day, the cost is $ 2.66 per hour. For me, it seems much more affordable. I’m not saying you should not go to the gym, but make sure you know how much are actually costing you.
Here’s another popular support plan with DVD rentals. Net flicks have Blockbuster and DVD rental plans which will send the DVD by mail. You see them and send them back. The most popular plans cost about $ 17 per month and allow you to have 3 DVDs checked out at a time. Announce that you can have “unlimited rentals.” Of course in practice can only see so many movies a week and it takes time to get DVDs sent back and forth.
If someone sees two films each week will end up seeing an 8 per month. This puts the cost at $ 2.13 per movie. Where I live the video rental stores have several days a week, where you can rent two for the price of one and the charge is usually $ 0.99 to $ 2.50, so $ 2.13 is not as big of a deal . If you watch more movies per month, you can start being a better deal, but I do not know until you look at your actual usage. What may be good business for someone else would be a terrible deal for you and vice versa.
On the other hand if you sign for a DVD rental membership and cancel your cable subscription of $ 50 per month, you will save a significant amount of money. $ 50 per month works out to $ 600 per year. The membership of DVD rentals will cost $ 204 per year, but you get to pick the movies you want to see and spend less time watching ads.
I’m sure you can think of many other monthly payments that may or may not be good business. Just make sure you evaluate your expenses based on the total cost over time and its actual use.