Own less, have more – Why the subscription model is taking over
We find ourselves in an age of ever-changing socioeconomic circumstances, where the cost of living rises, but salaries aren’t rising to meet it.
In order to not only survive, but thrive, South Africans (and the world) are having to rethink traditional ideas on how to purchase, budget and consume.
This has created the perfect climate for a subscription economy, where we pay for what we use, as we use it, in a flexible way that works for our budgets.
Subscription services such as Netflix and Spotify give us access to content for a monthly fee at amounts so small, we barely notice the dent in our bank accounts.
But over-and-above services and digital content, subscription is becoming the norm for getting tangible items, from TVs to tumble dryers and clothes to computers.
The ability to “pay as we use” is becoming preferred over outright purchases and high-interest rate credit.
Teljoy is South Africa’s original rental (or subscription) provider, providing customers with immediate access to a brand-new household item at an affordable monthly payment, rather than a large upfront expense.
Founded in 1969 at a time that television was not available in the country, founder Theo Rutstein’s vision was for every South African to have access to their own television set.
At the time, the cost of a television was an upfront cost that most couldn’t afford, so Teljoy gave customers the opportunity to “rent” the television for an inexpensive monthly cost.
As time progressed, it became clear that South Africans valued ownership. Teljoy then moved to a “rent-to-own” model, which gave customers the same monthly payments, but with the option to take ownership once the rental term ended.
The option to own the rental item has remained a part of the Teljoy model. Contrary to being a lender or credit provider, Teljoy is for those who are able to afford the monthly subscription and want the upsides of ownership, but with added flexibility and benefits.
From its roots in television, Teljoy’s has since expanded into home appliances, such as fridges, washing machines, and dishwashers; electronics such as laptops, sound systems and game consoles; and even beds and furniture.
“Although our product range may have changed, our vision has remained constant: to give South Africans access to the things that they need for their homes in a way that is easy, adaptable and doesn’t invite debt. It really is the better way to pay for the things you want,” says Jonathan Hurvitz, CEO of Teljoy.
With Teljoy’s unique model, customers are not tied into long-term contracts, but instead pay month-to-month for as long (or as little) as they need the item.
With circumstances changing from day-to-day, Teljoy gives their customers the flexibility to cancel their subscription if they no longer need it, as well as the option to upgrade or downgrade what they have.
Different to the typical idea of “subscription” or “rental”, a Teljoy subscription comes with a host of benefits that give the customer protection, freedom of choice and ultimately, convenience.
Built into the monthly cost is not only the brand-new product itself, but extras such as repairs for the lifetime of the subscription, as well as risk cover, which is a bonus for South Africans who are concerned about theft.
Teljoy even covers the TV licence on all TVs so that their customers can spend less time on admin.
It’s clear that as the world changes around us, so must our ideas of how to manage our spending habits and how we get what we need for ourselves, and our homes.
South Africa is poised for a subscription revolution and Teljoy is leading the way!
Click here to learn more about Teljoy.
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