The average American is spending $273 a month on subscription services and most of them aren’t even aware of how much they are shelling out each month.
A new survey from West Monroe says that’s 15% more than in 2018, an increase of $430 per year. ““It is evident that U.S. consumers are choosing to spend more on subscription services than in years past, but they aren’t truly grasping how much they are actually spending. This disconnect has only increased from our survey in 2018,” said Dhaval Moogimane, a partner in West Monroe’s high-tech & software practice who works with companies on their subscription services strategy.”
In addition to software, music, video, and other digital subscriptions, more people are ordering subscription boxes with pet supplies, beauty products, and pop culture collectibles.
Because these purchases are digital and reoccurring, the survey says there’s more of a disconnect on what you’re spending than if you walked into a store, picked out the item, and paid at the register.
Categories included in the survey were:
- Amazon Prime
- Beauty subscription boxes
- Book services
- Children’s subscription boxes
- Cloud storage
- Dating apps
- Diet/fitness apps
- Digital newspapers/magazines
- Fashion subscription boxes
- Gaming services
- Home security systems
- Identity protection service
- Lifestyle subscription boxes
- Meal services
- Mobile phone service
- Music streaming
- Pet’s subscription boxes
- TV/movie services
- Web hosting
- Wellness apps
- WiFi at home
When asked to initially guess how much they were spending, most people’s average first guess was $62. When they took the time to tally up the actual cost of all of these subscriptions, the average total was a shocking $273.
I’m a little afraid to do my total. How about you?
One thought on “Americans are spending a lot on subscriptions”
You asked for it, so here ya go.
Amazon Prime-9.92, Mobile Phone-63.00, Security Service & Doorbell Cam-51.50, Internet-52.90, Streaming Service-6.99. Total of $184.31.
Like you, I was a little leary of doing a total, but since most of us probably consider phone and internet service as a utility it becomes much cheaper when these two are factored out. $68.41, which is pretty close to what people were originally guessing.
In any case, it is a good exercise for us all. It helps keep us aware of the little things that eat into our cash supply without us taking much notice.
Thanks for keeping us on our toes.