Judy Ortega – Page 2

Posted on December 30, 2022June 22, 2023 by Judy Ortega — Leave a comment

The Modern Phenomenon of Peer to Peer and Subscription-Based Models – Good or Bad? Should the Appliance Industry Take Note?

In the past few years, it has become increasingly clear that subscription-based business models are becoming a popular trend with business owners and customers. For business owners this is driven by better customer retention, and stable long-term profits. For customers, subscription-based business models are becoming more popular for a few reasons. Why would a customer want to subscribe or rent instead of own? There are several reasons, some good, others bad. Lets dive into those reasons deeper.

1. Convenience and value
A good reason. Some examples include entertainment subscription-based models like Netflix and Spotify. In exchange for a weekly fee users are granted access to a library of tens of thousands of titles that would otherwise cost a fortune to buy. The convenience and value offered here is obvious. Another example is Car share services like Carnextdoor, Uber Carshare, Flexicar, Popcar and GoGet. These are for the most part not subscription-based business models, but peer to peer or one time access services, where your neighbour has a car next door, and when you want to use it you book it out. But they do work on the same principle that when you want the good, you rent it for the time you need. There’s a lot of fixed costs involved in owning a car and if you don’t need to use one often, these services can save you a lot of money. It also puts idle cars to work, meaning fewer cars are needed on our roads, reducing the embodied energy and sustainability of vehicles.

2. Ability to access something they could otherwise not afford.
A good or bad reason depending on the context. All people should have access to all life’s luxuries, regardless of their age and income – even if only for a short while, and rental or subscription-based business models can provide this access. But if someone is using a subscription-based business model to access something that is closer to a human right – like appliancesthat are important to sanitary living conditions like a washing machine or refrigerator – because they could not otherwise afford to buy those appliances, well that’s not good. Perhaps the question here is, do we believe that people have a right to true ownership of certain property?

Housing is increasingly becoming unaffordable for people to buy, and most would consider it to be a true right for a hardworking person to have – A place to call their own, where they can settle down for the long run and do what they will without fear of repercussion or eviction. In Melbourne City, Australia, most could never afford to live within the inner suburbs. Places like Melbourne CBD, Carnegie, Toorak, and Caulfield and Maribyrnong are completely out of reach for most Australians, all they could hope to do is find a rental house or apartment for rent. At the same time we need rental property for those who haven’t accumulated enough savings to buy a house or apartment, or are just temporary inhabitants who do not want to stay long term. We need subscription or rental housing – but we need true ownership to be reasonably on the table.

3. No choice – or at least no reasonable choice
The worst outcome of subscription-based business models, and obviously a bad reason. It should be noted though it is hard to simply categorise subscription-based business models into three distinct categories, and whether we may determine if they are good or bad based on this categorisation – It is highly dependent on context. For example a person who works 40 hours per week for 10 years and has not managed to save for a home deposit in an average neighbourhood, despite being responsible with their money and their best intentions – Well we could say that person had no choice but to continue subscribing to housing instead of owning.

The most obvious example where a customer has no choice is some Software as a Service (SaaS) products. If you want a copy of Photoshop now, your only choice is to subscribe to it. And there’s plenty of other examples of software where your only choice is to subscribe to it. Now you might say “sure, but there’s other software you can use”, and that’s true, but the fact is that Adobe Photoshop is the industry standard. One of the reasons it is the industry standard is that Adobe actively encourages students with cheap access, so that’s what they learn, and when they go to get a job, they expect their employer to continue offering them this access, now at a much higher price. Not all SaaS is a case of no choice – but when you are offered no realistic alternative and no option for true ownership, which ends up costing you more, that’s not fair.

4. The reasons for subscription-based model popularity to appliance manufacturers and appliance retailers.
The big driver for a subscription-based model to businesses is driven by better customer retention, and stable long-term profits. When subscription-based models are done well, a business can turn a one time purchase into a lifelong income stream – and while there is plenty of scope for it to be at the customers detriment, it needn’t be at all. Subscription-based models done well give customers more freedom and flexibility as well as lower lifetime costs. For example marketing costs and cash flow management costs are significantly reduced for the business, allowing it to spend more on customer service and retention, and reduce prices, while building a more reliable product.

5. Lessons for appliance manufacturers, the appliance industry and the future of appliance sales.
The appliance industry has long been set in its ways, and the time may be coming for disruption. As consumers become more educated about their homes and how they use appliances, appliance manufacturers might be realising that there could be a better way to do business than simply convincing customers to buy the latest model appliance. Will we witness a shift in consumer behaviour to subscription appliances given a choice between true ownership and a subscription-based model? Or would it just be a cynical attempt by appliance manufacturers and the appliance industry as a whole to make more appliance sales and profits? Well, it could be either. Done well it could be a revolution for the appliance industry. Done badly, a shameless money grab.

6. Done well Done well subscription appliances makes a lot of sense. For appliance manufacturers it could mean long term reliable income. With a risk reversal, no lock in contract, or return anytime subscription-based model, for customers there could be a choice between buying the appliance outright, or subscribing to either a brand-new model, or a refurbished model. Customers no longer need to worry about appliance breakdowns and appliance repairs, appliances not fitting when they move, or outgrowing their appliance. Upsizing, downsizing, easy and straightforward. No more worries about how to move big heavy appliances from place to place. Or what to do when the appliance needs repairs. From a sustainability perspective a subscription-based model makes far more sense than the current buying outright model. If the appliance manufacturers own the appliances they are highly incentivised to build reliable, repairable models – even easily upgradeable models – which has the potential to substantially reduce waste and align the appliance industry with reduce, reuse, recycle philosophy much more closely.

A subscription-based model done well could see the return of appliance repair. The unfortunate truth is that in many countries, like Australia, the cost of labour is very high. While it might be a sustainable practice to have your appliance repaired it is not the economic choice. To get a repairer out to look at the appliance, you have to pay a call out fee (even if the appliance is irreparable) you need to pay for the repair – and if it’s not fixed, you’re right back where you started. This problem in the appliance industry causes flow on effects – consumers buy cheaper, cheaply built brands, knowing that if the appliance breaks they will not repair it, rather throw it out and buy another. A subscription-based model can change all of this and align the appliance industry with the reduce, reuse, recycle philosophy. For an appliance manufacturer who has access to parts at cost price and specialises in repairing and refreshing appliances, with control over the quality and repairability of the appliances in the first place, this is not expensive at all. Replacing a dented fridge door makes a big difference to its appeal and its about a 5 minute job and $5 of steel and plastic. Trying to replace a fridge door as a consumer – if you’re lucky enough the part isn’t NLA – no longer available – it’s at least $100 a door, sometimes upwards of $400, and you still need to pay the technician to come out and do the job!

To do it well though, the “set in its ways” appliance industry may be too rigid to adapt, certainly most players will be. Giving customers the option to subscribe to not new – second hand or used appliances – refurbished appliances – means a pivot away from manufacturing, to refurbishing, repairing, testing, servicing and cleaning. It doesn’t sound difficult but let’s look at it. The appliance manufacturer designs the appliance. They make it in China, or another country with cheap labour. Then they ship it around the world to their warehouses. From their warehouses it goes to appliance retailers through what are often cartel like structures called buying groups, which have exclusive membership. If the appliance manufacturer sells to anyone outside of the appliance buying group, then the appliance buying group boycotts them. Once with the appliance retailer, the appliances are sold and delivered to the customer by the appliance retailer.

From this state of affairs appliance manufacturers need to continuing to import the goods from overseas to their local warehouses, and setup operations for repair, testing, servicing, cleaning and refurbishment. This will certainly upset the appliance buying group cartels – so for the appliance manufacturer, they are risking everything to make the change to a subscription-based model, at least not without their cut. But, lets say they did take the risk, or find a way to appease the cartels – A big corporation would need to make a big pivot to substantially more local staff and a whole new set of skills in refurbishment, cleaning, testing and repair. They don’t know how to do this or have the facilities. It’s a lot of risk for the risk averse appliance industry.

7. Done badly

Done badly subscription appliances offered by an appliance manufacturer would just be a money grab. It could go a few ways. Perhaps appliance manufacturers in cooperation with existing appliance retailers would offer a subscription fridge, which was really just the same as you paying it off over a few years at high interest rates with an option to buy the appliance for $1 at the end of the term – like traditional appliance rental. Or maybe you could subscribe to only a new fridge, and if there was any fault the appliance manufacturer or appliance retailer just took the fridge away and crushed it. Subscription appliances done badly would just be a money grab – It could start with the best of intentions, but as reality set in, a watered-down version would just be a cynical money grab.

Should the Appliance Industry Take Note?

Yes. It seems likely that if the appliance industry does nothing that inevitably a plucky start-up will get the jump on them catching them short as a whole and scrambling to catch up. But entrenched ways of doing business and cartel behaviour from appliance retailers make it hard to see how the appliance industry could pivot to a subscription-based model in anything but a cynical money grab, which would likely be doomed to failure.

Posted on December 25, 2022May 24, 2023 by Judy Ortega — Leave a comment

4 Ways Subscription Appliances Reduce Waste

During the pandemic, everybody is working from home now and everybody this time is discouraged from going out. If not to shop for essentials, people are asked to stay home. Community has been shut down as well closing down our go to establishments such as restaurants, laundromat, and cinemas which heightened the need for appliances which birthed the business model of subscription appliances.

Today, we will not be elaborating the basic functionality of the Subscription Appliance business model but we will be covering the advantages of Subscription Appliance, its contribution to the environment and how it would best make the service a better option than buying.

Subscription appliances significantly reduce landfill waste and associated carbon emissions. This is for one simple reason. The interests of a subscription appliance business is aligned with sustainable outcomes.

1. Subscription Appliances Means Appliance Users Don’t Send Appliances to Waste.

Subscribing appliances can help reduce landfill waste by reusing and recycling appliances so end users don’t need to continually buy appliances new and repeat the wasteful cycle. Subscription appliances are part of an answer to closing the loop. When you own or rent appliances the traditional way, they don’t receive the proper care or servicing they need. Often people lament that appliances just aren’t built to last anymore. That just isn’t true. What is true is that people don’t look after their appliances anymore, and this is usually because the cost of labour, the cost of parts, and the risk of unsuccessful repair means that appliances aren’t economical to repair.

If the cost of labour was cheaper we might see a manufacturer conspiracy to less repairability to encourage more sales, but they just don’t have that incentive. The way things are now an appliance manufacturer wants to have serviceable and repairable appliances, because when it breaks the blame is shifted to the consumer for not getting the risky and expensive repair undertaken. The appliance could be repaired, it is the consumer choosing not to, because choosing to repair them usually involves acting against their best economic interests. Neither are appliances periodically serviced like they might once have been. Just like your car, your appliances need periodic checking by a professional to identify if anything is on the way out and needing replacement. Belts, bearings, pulleys, heaters, fans, all easily replaceable failure points.

Imagine driving your car for several years without a service and throwing it away to buy a new one when it breaks down, and complaining that cars just aren’t built like they used to be! Appliances have only got more reliable, the advent of the computer age has allowed a myriad of analogue and mechanical switches to be replaced with a solid state computer, vastly reducing failure points. We expect appliances to last longer while looking after them less.

Subscription services changes this dynamic from unsustainable to sustainable products within the reduce, reuse, recycle, philosophy – that is – sustainable practices supporting sustainable living. A subscribing appliances model means the customer simply returns a non-working appliance for a working one – they’re never in a position to need to dispose of an appliance.

2. The Subscription Appliance Business Model Encourages Appliance Owners to Maintain Their Appliances Instead of Sending Them to Waste.

With subscription services, the customer no longer owns the machine, and is no longer responsible for its care and uptake. Instead the subscribing appliances business is responsible, and the customer expects working appliances at all times. For the subscribing services business, they want appliances that are easily repairable with long service lives, and they want to avoid breakdowns at customers houses because its bad for customer experience, its much harder to deal with than in the warehouse or factory, and it might require multiple visits to resolve. So a subscribing appliance business services their appliances. The subscribing appliances business also has an economic interest in getting the longest life out of an appliance, and repairing it. In fact they’re usually going to specialise in repairing their appliances, its much more cost effective for the subscribing appliances business to repair and service their appliances and pass the saving s onto customers, than continually buy appliances, and throw broken appliances away which only need minor service.

Subscribing appliances turns the economics of repairing appliances around, signficantly reducing waste through reuse and longer service lives. The economic interest of the subscribing appliances business is aligned with sustainable practices and sustainable products and through that sustainable living – there’s no need for anyone to do the right thing, the structure itself aligns the economic interest of the appliance owner with the reduce reuse recycle principles.

3. The Subscription Appliance Business Model Creates an Economic Incentive to Salvage Parts.

When an appliance has come to the end of its service life, its reusable parts can be salvaged for use in another appliance, further reducing waste and improving sustainable living. While there are service parts that wear out, there are many that have no service life, or have very long service lives and will continue to last in good condition. For example a washing machine door, or a fridge shelf. This also combats another problem with the sustainable practices of the appliance industry, the dreaded NLA – no longer available. Depending on the brand and model of appliance you buy, parts may never be available to buy. For quality brands like Fisher Paykel, Electrolux, LG, Miele and Asko parts are usually available, but for how long varies wildly. Sometimes you won’t be able to get a part after just one year (or less), sometimes parts can be available after 20 years or longer. Usually the more you pay for the appliance initially, the longer parts will be available but there’s no guarantees. And even for a specific model some parts might be NLA after just a few years, while others are available a few decades later. A good example of this is Fisher and Paykel refrigerators. For many of their models the doors are no longer available, so if a door is damaged, it needs to be repaired, or if its too bad another door needs to be found from an appliance that is otherwise beyond repair. For the same fridge, most of the other parts are still readily available, as they’re used on more current models and you can even get parts for a fridge thats 30 years old in many cases, just frustratingly, not the doors.

For the subscription appliance business owner, because they own hundreds of the same model of appliance, they can convert anything that is beyond repair into parts, and now those parts that are no longer availalble – they are available! That fridge that would have been put out on the nature strip as waste, now gets a chance to breathe new life into several of its brothers and sisters. Traditionally when you rent appliances or buy appliances many of these parts would be ewaste, with subscribing appliances they’re kept as valuable parts.

4. The Subscription Appliance Business Model encourages manufacturers to build more repairable appliances.

The final reason subscription appliances reduce waste is by encouraging appliance manufacturers to adopt more sustainable practices and design and build more repairable and sustainable products. It is simple supply and demand. As the demand grows for subscription appliances, the business owners will have a strong preference for repairable appliances, and pay a premium for them. There will be higher demand for those repairable appliances and therefore the manufacturer can command a higher price, while those less repairable or with poor parts availability will be less attractive and won’t be as valuable. This can make better appliances availalble to all and support more sustainable living.

There, we have compiled them all together. True to this writing the services we offer here at Whybuy is over the top. Minimum effort with maximum result for us, our customers and the environment. We have only started with suggesting a more sustainable lifestyle to our customers and we will continue to do more and add more services that would aid the idea of sustainability at its best functionality.

Stay tuned to know more about Whybuys journey.

Posted on December 11, 2022March 7, 2024 by Judy Ortega — Leave a comment

Subscription Appliances – Save Money and Live Sustainably?

The world is a big place, and human populations are growing globally – is it even possible to have a sustainable future and live sustainably with such a large and growing population? The Reduce, Reuse, Recycle philosophy and Sustainable products – often just a greenwash – can only take us so far in a human world demanding ever more resources. Global energy consumption has increased by more than 30% over the past decade, with countries like China and India driving that growth. Climate change is already affecting us all, but even if we’re able to adapt our way out of it, we need to make sure that we don’t add further damage when we do so – This will only increase the problems associated with climate change in the future. In addition to climate change we seem to have forgotten the myriad of other environmental problems that were already causing problems before climate change become the focus issue of the environmental movement. Single use plastic, nuclear disasters, habitat and rainforests being converted into farmland, degradation of environment, toxic waste, landfill – the list goes on and on.

What are Subscription Appliances?

Subscription appliances are a great way to get the same appliance you would otherwise buy but as the name implies – you subscribe to them instead of buying appliances, and pay a weekly or monthly subscription fee. Brands like LG, Samsung, LG and Electrolux that you’d otherwise buy at big box stores like Harvey Norman or the Good Guys or even buying online at somewhere like Appliances Online are now available as a service instead of a physical good – serviced electric appliances. Instead of buying physical electric appliances you subscribe to them. And because you no longer own them and you’re paying for functional safe working electric appliances, you can demand that they are repaired or replaced at no expense to you if there’s a fault. Because you’re not paying for the electric appliance, you’re paying for the fridge to keep your food at the right temperature, your clothes to be washed effectively, to be entertained by your TV, and for your clothes to be dried correctly – and so on. For all intents and purposes the electric appliances have a lifetime warranty! And if your lifestyle and budget and budget change – for example you might move house and your fridge doesn’t fit your new space, or perhaps you have a baby and need a larger washing machine – you can simply swap out for the appliance you need, when you need it!

How are Subscription Appliances the Sustainable Alternative?

We are not here to shame you by telling you that subscription appliances are the best for a sustainable future and if you don’t choose subscription appliances you are not living sustainably living. It has long since been established that the concept of personal responsibility for climate change “your carbon footprint” was a marketing exercise by fuel giant BP. The reality is that a handful of companies around the world are responsible for climate change, and many of them are actively campaigning to prolong the use of fossil fuels and the damage cause by climate change because ultimately, they don’t have to pay for the clean-up, and their current business is very lucrative. At Whybuy we believe you should try to live sustainably and take some personal responsibility for your actions. Simple things like sorting your recycling and organic waste where services are available into the correct bins. Reduce, reuse recycle. If you have an old inefficient refrigerator, it can be replaced with a newer model that reduces energy use. Little things that are within your power to change, that don’t mean your quality of life is worse. We don’t believe in flight shaming and reduce energy usage to the point where you’re living in the dark. The technologies exist to end climate change now. You should have a choice to fly on an electric plane. Your electricity should be generated with one of the myriad sustainable energy options available. It’s not even particularly expensive and has been shown to be much cheaper than continuing to emit carbon. The most important thing you can do is vote for climate action and laws that hold polluting companies to account, because you can bet those same companies are bribing and lobbying government for their own benefit, to the detriment of you, your children and the environment we all share.

We are here to tell you about the benefits of subscription appliances, not guilt you about your “carbon footprint” and do the propaganda work of petrochemical companies for them, We will give you the facts without the spin, and you can make up your own mind. Subscription Appliances are more sustainable for one key reason. The interests of the subscription appliance business is aligned with a sustainable future. A subscription appliance retailer wants to keep the appliances running as long as possible- so they repair them whenever they break. If the appliance is irreparable, it is stripped for its useful parts like control boards or fridge shelves, switches, and doors which go into other appliances that require repair. The sad reality is that in many countries, like Australia, the cost of labour is so high, while it might be a sustainable practice to have your appliance repaired it is usually not the economical choice. To get a repairer out to look at the appliance, you need to pay a call out fee even if the appliance is irreparable, you need to pay for the repair – and if it’s not fixed, you’re back at square one. And this is where we come full circle to what we were discussing earlier – where you should have sustainable options, instead of having to choose between an uneconomical repair where the risk reward doesn’t work out, or making the sustainable choice. This problem in the appliance industry causes flow on effects – people buy cheaper more poorly built brands knowing that if it breaks they won’t repair it, just throw it out and get another one. These more poorly built brands are usually less efficient using more power and water, and have shorter lives, and don’t do as good a job as the more expensive machines.

Subscription Appliance businesses on the other hand have an interest in selecting good quality machines that won’t give them maintenance headaches, that they always have to go and repair or maintain. More easily repairable machines that will have long service lives. Subscription Appliances is very aligned with the reduce, reuse, recycle philosophy. At the same time though, and running counter to the sustainable interests – the other main consideration is the cosmetic quality of the electric appliance to the customer. Sure, you can make a good quality appliance run for 20 years, but the customer probably won’t be very happy with it when it arrives! Most subscription appliances businesses have a full refund on delivery policy if you’re not happy with the electric appliances on delivery, or you can always just return them whenever you want, that’s the beauty of subscription appliances for the customer! So it’s a balance between a pretty machine, and getting as much life out of the machine as possible, before a customer would be anything less than happy with it. Finally most subscription appliances businesses have protections if an appliance develops a fault – for your peace of mind. Fir example Whybuy has a $150 food spoilage protection policy if one of our Fisher and Paykel fridges develops a fault causing your food to go bad, so we’re also careful not to push things past their service life, as we’re the ones who end up paying for it!

It could be said that by repairing appliances and keeping them in service longer, more power and water will be wasted because newer electric appliances will be more efficient and have smart technologies to reduce energy use. While there was substantial efficiency gains to be had in the last 20 years efficiency gains have largely diminished in the last few years, and without any breakthroughs in smart technologies its hard to see how appliances would get more efficient. For example, a fridge runs on the same technology it did 50 years ago, and it has been perfected over time to substantially reduce energy use since then, there have been no major breakthroughs – only improvements. In fact you could take a 50 year old fridge and make it more efficient than a fridge built yesterday simply by adding more insulation to its body. Often we look to these smart technologies to save us, when we’ve always had the answer to our problems in front of us.

Posted on December 11, 2022October 15, 2023 by Judy Ortega — Leave a comment

3 Reasons to Consider Subscription Appliances When You Move to Melbourne

When it comes to sourcing electric appliances, there are many things one needs to consider. Whether you’re moving to Carnegie, Toorak or Melbourne City theres a bunch of considerations. New or used appliances? Which appliance manufacturer or brand (LG, Samsung, Fisher and Paykel and Electrolux are some top brands)? Would you save some money by going with a scratch and dent appliance? What capacity, and how big physically? Will you buy the appliance in store or on line (Harvey Norman, Appliances Online, and the Good Guys are some common stores in Melbourne to buy new, otherwise gumtree.com.au and facebook marketplace are a great place to pickup used appliances)? If you move a lot and have a changing lifestyle you also want to think about how you will move the appliances (A Hertz truck rental or a van from carnextdoor or Uber carshare?), and consider how likely they are to fit into your next place. If you have no idea about these things then renting makes these choices easy. If you make a mistake with your measurements, or your needs change in time, you simply cancel your rental or swap for something that suits you better.

1. Subscription Appliances is the cheaper alternative to get electric appliances that fit your lifestyle and budget

Subscription appliances are a great way to save money.

Subscription appliances means you don’t have the exorbitant cost of buying appliances new versus fully serviced appliances that you never spent a cent repairing.

Subscription appliances means you don’t have to bear the cost of breakdowns. After all as you’re paying for serviced appliances, rather than the physical electric appliance itself, why would you have to pay to fix it?
Subscription appliances means you don’t have to worry about the risk of getting scammed when buying appliances used.
Subscription appliances are a practical way to find appliances that suit your lifestyle and budget.
Subscription appliances are an economical option when it comes to getting what you need or want to suit your lifestyle and budget, without having to spend thousands of dollars on new appliances or wait for delivery.
Subscription Appliances are the more sustainable option as minor issues are repaired allowing the appliance a longer life in line with the reduce reuse recycle philosophy.

2. A lot of research is needed when finding the appliance most suitable for your lifestyle and budget.

When you’re trying to decide which appliance is best for your lifestyle and budget, many factors should be considered. With a subscription appliance, its easier, but if you are steadfast on buying appliances you have your work cut out for you! Make sure to check the model number of the electric appliances you are looking at online to see if its a lemon. If it’s got mostly bad reviews it’s usually a design flaw with the model and best to avoid. Make sure it will fit your space and allow a bit extra for mistakes. Check how long the warranty is.

When buying a new appliance, especially online, enquire how long delivery will be before you commit to the purchase to avoid long waits. If you’re buying used, you need to watch out for the scammers – we’ve written an article here to guide you, as well as the most common scams here. You might also need to clean and transport the appliance as well when buying appliances used so take that into account when calculating your savings.

If you want to save the hassle – subscription appliances is your answer. When looking into renting appliances, its more straightforward. Just check the online reviews both for the product and the appliance rental business you are considering, from other people who have rented these appliance before so that you can get an idea of what kind of electric appliances would work best for your lifestyle and budget as well as checking the rental fees.

3. Subscription Appliances are the better alternative to buying appliances

Here are some of the benefits:

Subscription appliances are usually cheaper than purchasing an electric appliance.

If you’re not sure about which electric appliance or how long you will be staying where you are, subscribing gives you time in which to decide which model fits best with your lifestyle and budget. If you leave in a hurry you don;t have the hassle of trying to sell your electric appliances
If you’re staying in Melbourne City long term, many rental businesses offer long term discounts. Whybuy has a gold membership which we recommend to customers who are sure they will be around for a year or longer, which has much lower weekly rental fees.
Subscription agreements allow access to different models so that they can try out various brands and models without committing themselves financially. If you don’t like them after trying them out simply return them!