1 00:00:00,009 --> 00:00:02,259 Speaker 1: This is AC N A podcast. 2 00:00:11,510 --> 00:00:14,890 Speaker 1: Hey, welcome back to Money Talks. I'm your host, Andrea Heng. 3 00:00:14,930 --> 00:00:18,860 Speaker 1: Now on this series, this or that which you've been following. 4 00:00:18,870 --> 00:00:22,520 Speaker 1: I'm sure my guest weighs the pros and cons of 5 00:00:22,530 --> 00:00:27,379 Speaker 1: two options. Now, here's a familiar scenario for some including myself. Ok, 6 00:00:27,579 --> 00:00:29,930 Speaker 1: you've bought a voucher to a new spa or a 7 00:00:29,940 --> 00:00:34,019 Speaker 1: salon and you're looking forward to a relaxing time. 8 00:00:34,279 --> 00:00:37,740 Speaker 1: A courteous receptionist greets you and guides you to a 9 00:00:37,750 --> 00:00:40,869 Speaker 1: treatment chair or room and hands you over to a 10 00:00:40,880 --> 00:00:45,549 Speaker 1: smiling therapist. Picture this as you close your eyes and 11 00:00:45,560 --> 00:00:49,509 Speaker 1: start to unwind the therapist explains the service you are 12 00:00:49,520 --> 00:00:53,339 Speaker 1: about to receive and then comes the sales pitch. Would 13 00:00:53,348 --> 00:00:54,889 Speaker 1: you like to purchase a package? 14 00:00:55,650 --> 00:00:58,529 Speaker 1: She says a one off massage of facial treatment is 15 00:00:58,540 --> 00:01:03,310 Speaker 1: not going to deliver overnight results. Sound familiar. Plus she 16 00:01:03,319 --> 00:01:06,559 Speaker 1: says you'll get a better deal in the long run 17 00:01:07,169 --> 00:01:10,650 Speaker 1: and guess what? The selling does not stop there because 18 00:01:10,660 --> 00:01:13,569 Speaker 1: even after fobbing off the therapist, you still have to 19 00:01:13,580 --> 00:01:16,800 Speaker 1: deal with the receptionist who is now going through her 20 00:01:16,809 --> 00:01:20,739 Speaker 1: sales pitch and it's a package to cater to every budget. 21 00:01:20,750 --> 00:01:24,910 Speaker 1: This package model is practiced by most wellness and beauty 22 00:01:24,919 --> 00:01:28,800 Speaker 1: establishments with the promise of being more cost effective than 23 00:01:28,870 --> 00:01:32,300 Speaker 1: buying single purchases or a la carte. What I want 24 00:01:32,309 --> 00:01:36,940 Speaker 1: to know is do packages always make better financial sense 25 00:01:36,949 --> 00:01:40,150 Speaker 1: or should people be careful and stick to pay per 26 00:01:40,160 --> 00:01:44,120 Speaker 1: visit in case the business shuts to help me solve this. 27 00:01:44,129 --> 00:01:47,830 Speaker 1: I now have Xiao Kalo. Kalo is the managing editor 28 00:01:47,839 --> 00:01:50,500 Speaker 1: of personal finance website. The simple sum. 29 00:01:50,739 --> 00:01:53,949 Speaker 1: Hey Kay, welcome to Money Talk. Thank you for having me. Alright. 30 00:01:53,959 --> 00:01:58,160 Speaker 1: So Kaylon, have you bought a beauty package before? I 31 00:01:58,169 --> 00:02:01,330 Speaker 1: would say as 60% or maybe a higher percentage of 32 00:02:01,339 --> 00:02:06,190 Speaker 1: women in Singapore would answer. Yes, it's a very resounding. Yes. Ok. 33 00:02:06,199 --> 00:02:10,970 Speaker 1: So what services were these for? I've mainly done massage packages. 34 00:02:11,000 --> 00:02:14,100 Speaker 1: Thankfully it's just kept like that. But of course I 35 00:02:14,110 --> 00:02:19,130 Speaker 1: have many friends who have done new packages, waxing packages. Ok. 36 00:02:19,233 --> 00:02:22,822 Speaker 1: Ok. I was one of those IP L packages IP 37 00:02:22,832 --> 00:02:26,102 Speaker 1: L packages, hair salon packages even, right? As long as 38 00:02:26,113 --> 00:02:28,373 Speaker 1: it has to do with a woman's appearance, you can 39 00:02:28,382 --> 00:02:31,441 Speaker 1: probably find a package for it somewhere for sure. You'd 40 00:02:31,453 --> 00:02:34,423 Speaker 1: be hard pressed to find none in my opinion. And 41 00:02:34,431 --> 00:02:37,702 Speaker 1: IP L in case you didn't know it's intense pulse light. 42 00:02:37,712 --> 00:02:41,393 Speaker 1: So it's a form of hair removal treatment that women 43 00:02:41,401 --> 00:02:43,881 Speaker 1: but also men sign up for and they tend to 44 00:02:43,893 --> 00:02:47,242 Speaker 1: tell you oh, you need a minimum of six sessions 45 00:02:47,252 --> 00:02:47,532 Speaker 1: for the 46 00:02:47,725 --> 00:02:50,576 Speaker 1: effect and all that stuff. But we'll get into that later. 47 00:02:50,735 --> 00:02:53,895 Speaker 1: I want to ask you. Now, Kaylon, did you regret 48 00:02:53,906 --> 00:02:57,975 Speaker 1: any of these package purchases? So, not so much for 49 00:02:57,985 --> 00:03:01,606 Speaker 1: the salon ones. I have thankfully been very diligent and 50 00:03:01,615 --> 00:03:05,035 Speaker 1: I completed all of it. Ok. However, that's not the 51 00:03:05,046 --> 00:03:08,436 Speaker 1: case when it comes to my class pass packages, my 52 00:03:08,445 --> 00:03:12,455 Speaker 1: class pass credits rather. Ok. So this is the exercise 53 00:03:12,466 --> 00:03:15,535 Speaker 1: and Wellness app that we're talking about. Right. Yes, I'm 54 00:03:15,546 --> 00:03:16,115 Speaker 1: sure like 55 00:03:16,218 --> 00:03:18,669 Speaker 1: most Singaporeans would be familiar with class pass by now. 56 00:03:18,718 --> 00:03:21,288 Speaker 1: So how they work is that you buy a certain 57 00:03:21,298 --> 00:03:23,828 Speaker 1: amount of credits every month and you have to use 58 00:03:23,839 --> 00:03:25,708 Speaker 1: them up within the month. There is a plethora of 59 00:03:25,718 --> 00:03:28,768 Speaker 1: services that you can use from going to the gym 60 00:03:28,779 --> 00:03:33,188 Speaker 1: to exercise classes and lately even massage packages or facials. 61 00:03:33,199 --> 00:03:36,779 Speaker 1: I've seen haircuts on that app as well. Right? Ok. 62 00:03:36,828 --> 00:03:40,589 Speaker 1: That one, aside when it came to your massage package, 63 00:03:40,679 --> 00:03:43,729 Speaker 1: were you pressured in any way to buy it? Not 64 00:03:43,738 --> 00:03:44,429 Speaker 1: gonna lie. The 65 00:03:44,712 --> 00:03:47,361 Speaker 1: town was attractive, I think with anything that you buy, 66 00:03:47,371 --> 00:03:49,972 Speaker 1: there are several things that you should necessarily think about 67 00:03:49,981 --> 00:03:53,531 Speaker 1: before you do it. So that includes firstly how frequently 68 00:03:53,542 --> 00:03:56,572 Speaker 1: you can envision yourself going for the service, right? That's 69 00:03:56,582 --> 00:03:59,111 Speaker 1: one and the other one that sometimes in the heat 70 00:03:59,121 --> 00:04:01,651 Speaker 1: of the moment we forget is how convenient the location 71 00:04:01,662 --> 00:04:05,921 Speaker 1: actually is. Yeah, that's a huge one. So another incident 72 00:04:05,932 --> 00:04:08,272 Speaker 1: recently I was tempted to buy a package for was 73 00:04:08,281 --> 00:04:10,882 Speaker 1: actually for a Pilates Reformer class. So, if you have 74 00:04:10,891 --> 00:04:13,102 Speaker 1: ever done Pilates Reformer classes, 75 00:04:13,205 --> 00:04:17,024 Speaker 1: do you know how expensive they are? They are very expensive. 76 00:04:17,035 --> 00:04:20,695 Speaker 1: The industry standard is about 40 to $50 without signing 77 00:04:20,704 --> 00:04:23,915 Speaker 1: any package. And even if you sign a package, if 78 00:04:23,924 --> 00:04:26,334 Speaker 1: it's not a special discount, the cheapest I've ever seen 79 00:04:26,345 --> 00:04:30,484 Speaker 1: maybe 30 so recently I've chanced upon a social media 80 00:04:30,494 --> 00:04:33,933 Speaker 1: ad that actually said that, oh, you could get 15 81 00:04:33,945 --> 00:04:38,005 Speaker 1: classes for $299. That's not too bad. Yeah, that drops 82 00:04:38,015 --> 00:04:41,424 Speaker 1: each class to $20 which is unheard of in Pilates. Yeah, 83 00:04:41,697 --> 00:04:44,267 Speaker 1: exactly. If you are in the practice, you know, and 84 00:04:44,278 --> 00:04:46,937 Speaker 1: so it's very tempting. But then in the terms and 85 00:04:46,947 --> 00:04:51,148 Speaker 1: conditions are firstly, you have to finish it within the month, 86 00:04:51,157 --> 00:04:56,267 Speaker 1: 15 classes in a month. Ok. Strictly speaking, still possible 87 00:04:56,278 --> 00:04:58,118 Speaker 1: you even get a day's rest in between. So you 88 00:04:58,127 --> 00:05:01,437 Speaker 1: can like do two days and one day. Very optimistic. Yeah. 89 00:05:01,447 --> 00:05:04,537 Speaker 1: But then the other thing was the location. So the 90 00:05:04,548 --> 00:05:06,958 Speaker 1: location of this particular studio was not near any M 91 00:05:06,967 --> 00:05:09,958 Speaker 1: RT station or even a bus stop. So it would 92 00:05:09,976 --> 00:05:10,087 Speaker 1: take 93 00:05:10,190 --> 00:05:12,821 Speaker 1: extra effort to go all the way there. So even 94 00:05:12,830 --> 00:05:15,531 Speaker 1: if I wanted to, it didn't seem to make a 95 00:05:15,540 --> 00:05:17,640 Speaker 1: lot of sense. The likelihood that I was not going 96 00:05:17,651 --> 00:05:19,670 Speaker 1: to finish my package would be very, very high. You 97 00:05:19,680 --> 00:05:21,950 Speaker 1: are a very practical woman so safe to say you 98 00:05:21,960 --> 00:05:25,281 Speaker 1: did not sign up for this reform package, even though 99 00:05:25,290 --> 00:05:27,471 Speaker 1: it was a very, very good deal. If you think 100 00:05:27,480 --> 00:05:30,960 Speaker 1: about it mathematically, it makes so much sense. $20. It does, 101 00:05:30,971 --> 00:05:34,131 Speaker 1: it does. Even if you were super disciplined, you're like, ok, 102 00:05:34,140 --> 00:05:36,811 Speaker 1: I'm super charged to lose weight to get into exercise. 103 00:05:36,821 --> 00:05:38,580 Speaker 1: This is going to be my kickstart. 104 00:05:38,683 --> 00:05:41,484 Speaker 1: It's just, there were so many other elements that discouraged 105 00:05:41,493 --> 00:05:43,212 Speaker 1: you from signing up in the end. It was more 106 00:05:43,223 --> 00:05:46,563 Speaker 1: of being practical that it would result in myself not 107 00:05:46,574 --> 00:05:48,493 Speaker 1: being able to go for the classes. And I think 108 00:05:48,503 --> 00:05:50,894 Speaker 1: that would be a thing that you should really think 109 00:05:50,903 --> 00:05:52,772 Speaker 1: about when you are signing up for a package, your 110 00:05:52,783 --> 00:05:55,574 Speaker 1: commitment level. Yeah. So we are talking about this or that. 111 00:05:55,584 --> 00:05:57,824 Speaker 1: Do we sign up for single or should we sign 112 00:05:57,834 --> 00:06:00,734 Speaker 1: up for a package? Because it makes more sense. So 113 00:06:00,743 --> 00:06:04,343 Speaker 1: strictly speaking, I advocate for paper use. Ok, especially when 114 00:06:04,354 --> 00:06:07,074 Speaker 1: you first start. Yeah, so there are several reasons behind 115 00:06:07,177 --> 00:06:10,076 Speaker 1: this. So that lovely scenario that you painted at the 116 00:06:10,087 --> 00:06:13,707 Speaker 1: start that many people are quite familiar with the scenario changes. 117 00:06:13,717 --> 00:06:16,596 Speaker 1: Once you sign a package sometimes, yeah, sometimes even the 118 00:06:16,606 --> 00:06:19,635 Speaker 1: service changes you sign up. That's what I mean. That's 119 00:06:19,647 --> 00:06:22,217 Speaker 1: what I'm getting into. There have been stories where, ok, 120 00:06:22,226 --> 00:06:25,187 Speaker 1: you get this wonderful experience when you first go and 121 00:06:25,196 --> 00:06:27,687 Speaker 1: the second time you go, sure they still give you 122 00:06:27,696 --> 00:06:31,066 Speaker 1: the facial but somehow it's not as soothing, not as 123 00:06:31,076 --> 00:06:34,127 Speaker 1: comfortable anymore. Even the bed is, the room is not 124 00:06:34,136 --> 00:06:35,515 Speaker 1: what I paid for. 125 00:06:35,829 --> 00:06:38,480 Speaker 1: Yeah. So that would be one thing to consider. And 126 00:06:38,488 --> 00:06:40,429 Speaker 1: that's something that you will only find out if you 127 00:06:40,440 --> 00:06:42,880 Speaker 1: actually visit the place a bit more. I think the 128 00:06:42,890 --> 00:06:45,359 Speaker 1: second thing also that you will only find out more 129 00:06:45,369 --> 00:06:48,329 Speaker 1: after experiencing it more would be how easy it is 130 00:06:48,339 --> 00:06:50,959 Speaker 1: to book the place as well. So, I've had friends 131 00:06:50,970 --> 00:06:53,549 Speaker 1: who have had packages and every single time they call it, oh, 132 00:06:53,609 --> 00:06:56,880 Speaker 1: I'm full, I'm full and it's impossible to finish using 133 00:06:56,890 --> 00:06:57,419 Speaker 1: the packages 134 00:06:57,488 --> 00:07:00,100 Speaker 1: because of this as well, right? Which is something that 135 00:07:00,109 --> 00:07:03,549 Speaker 1: you won't know if you sign up for a package upfront, right? 136 00:07:03,559 --> 00:07:05,649 Speaker 1: I did notice that as well when I did have 137 00:07:05,660 --> 00:07:08,459 Speaker 1: a package, but I didn't put the two and two together. 138 00:07:08,559 --> 00:07:12,600 Speaker 1: So beauty establishments usually cite cost as the main reason 139 00:07:12,609 --> 00:07:16,220 Speaker 1: for pushing packages to us as customers, right? They claim 140 00:07:16,230 --> 00:07:19,059 Speaker 1: it's much cheaper per session compared to a 141 00:07:19,149 --> 00:07:22,489 Speaker 1: per visit. Is that always the case? How does the 142 00:07:22,500 --> 00:07:25,920 Speaker 1: math add up here? The math is not wrong. Ok, 143 00:07:25,929 --> 00:07:29,540 Speaker 1: definitely it's not wrong, but that's the problem. It's not 144 00:07:29,549 --> 00:07:32,040 Speaker 1: just about the math a lot of the time. So 145 00:07:32,049 --> 00:07:35,200 Speaker 1: the three things that I mentioned just now. So firstly, location, 146 00:07:35,209 --> 00:07:37,920 Speaker 1: how often you are exactly going to use it. And 147 00:07:37,929 --> 00:07:40,040 Speaker 1: the third one being that whether the service hold up 148 00:07:40,049 --> 00:07:40,739 Speaker 1: over time 149 00:07:40,950 --> 00:07:44,000 Speaker 1: and these I think are just as important if not 150 00:07:44,010 --> 00:07:46,510 Speaker 1: more important than the cost alone. It's a bit of 151 00:07:46,519 --> 00:07:49,769 Speaker 1: a paradox though, not knowing, especially the quality bit that 152 00:07:49,779 --> 00:07:52,429 Speaker 1: you mentioned, right? The quality of the treatment you won't 153 00:07:52,440 --> 00:07:54,440 Speaker 1: know until you sign up. You can always go back 154 00:07:54,450 --> 00:07:56,600 Speaker 1: for a 2nd, 3rd visit and pay per use. So 155 00:07:56,609 --> 00:07:58,880 Speaker 1: I don't think that any salon is going to tell 156 00:07:58,890 --> 00:08:00,559 Speaker 1: you that. Oh, we are not going to entertain you 157 00:08:00,570 --> 00:08:02,640 Speaker 1: if you don't sign up a package. That's true. That's true. 158 00:08:02,709 --> 00:08:04,850 Speaker 1: And you, and you pay more per visit if you 159 00:08:04,859 --> 00:08:05,760 Speaker 1: don't sign up a package. 160 00:08:06,119 --> 00:08:08,958 Speaker 1: So there's no reason for it. Firstly, you are more 161 00:08:08,970 --> 00:08:12,109 Speaker 1: realistic about how often you can go back. And also 162 00:08:12,119 --> 00:08:14,980 Speaker 1: you get a better idea of the type of therapists 163 00:08:14,989 --> 00:08:16,959 Speaker 1: that they have there. So, not all salons. Can you 164 00:08:16,970 --> 00:08:19,519 Speaker 1: always get the same therapist or spas? Can you get 165 00:08:19,529 --> 00:08:21,769 Speaker 1: the same therapist as well? And you might want to 166 00:08:21,779 --> 00:08:24,470 Speaker 1: feel your way around and see if the different people 167 00:08:24,480 --> 00:08:27,529 Speaker 1: that you can alternate to make your package usable within 168 00:08:27,540 --> 00:08:29,890 Speaker 1: whatever time period that you have to finish it by. Yeah, 169 00:08:29,899 --> 00:08:31,230 Speaker 1: that's true. That's true. 170 00:08:34,099 --> 00:08:36,590 Speaker 2: Hey, everyone. My name is Steven Xia and I'm host 171 00:08:36,599 --> 00:08:38,979 Speaker 2: of C N A S weekly news podcast. Heart of 172 00:08:38,989 --> 00:08:41,270 Speaker 2: the matter. Now, each week my job is to ask 173 00:08:41,280 --> 00:08:44,049 Speaker 2: questions you have like, why is the C O E 174 00:08:44,059 --> 00:08:48,319 Speaker 2: so high? Why aren't singles dating or what is going 175 00:08:48,330 --> 00:08:49,549 Speaker 2: on with the red hot 176 00:08:49,815 --> 00:08:53,593 Speaker 2: market in Singapore? If you want the views behind the news, 177 00:08:53,604 --> 00:08:55,895 Speaker 2: then tune in each week as we get to the 178 00:08:55,905 --> 00:08:57,974 Speaker 2: heart of the matter. We are on the C N 179 00:08:57,984 --> 00:09:00,585 Speaker 2: A and me listen apps and wherever you get your 180 00:09:00,594 --> 00:09:04,025 Speaker 2: podcasts hit follow or subscribe. So you don't miss an 181 00:09:04,034 --> 00:09:05,445 Speaker 2: episode when it drops. 182 00:09:09,200 --> 00:09:12,299 Speaker 1: Ok. So a problem with buying these packages is that 183 00:09:12,309 --> 00:09:15,380 Speaker 1: the amount is not usually small. I mean, we're talking 184 00:09:15,390 --> 00:09:18,679 Speaker 1: about four figures running in the four figures upwards. I 185 00:09:18,690 --> 00:09:22,710 Speaker 1: remember paying thousands for an IP L package. That was 186 00:09:22,719 --> 00:09:25,729 Speaker 1: very painful. Did you finish using it? I did thankfully, 187 00:09:25,739 --> 00:09:28,729 Speaker 1: I did, but it took a painful two years to finish. 188 00:09:28,739 --> 00:09:31,849 Speaker 1: I finished it. I finished it. Ok. So aside from 189 00:09:31,859 --> 00:09:34,309 Speaker 1: struggling to use up the services, like you said it, 190 00:09:34,381 --> 00:09:37,331 Speaker 1: one of the key things to remember when you're signing 191 00:09:37,341 --> 00:09:39,780 Speaker 1: up for packages, right? There's also the danger of the 192 00:09:39,791 --> 00:09:43,632 Speaker 1: establishment closing down. Now, we've seen so many reports of 193 00:09:43,642 --> 00:09:48,271 Speaker 1: spas and beauty parlors shutting down leaving these customers in 194 00:09:48,280 --> 00:09:53,341 Speaker 1: the lurch. The Consumers Association of Singapore case reported that 195 00:09:53,351 --> 00:09:59,442 Speaker 1: consumers lost $285,000 last year alone in 196 00:09:59,564 --> 00:10:03,674 Speaker 1: repayments due to business closure. So do you think then 197 00:10:03,804 --> 00:10:07,773 Speaker 1: that the package model needs to change? So I'm not 198 00:10:07,783 --> 00:10:10,354 Speaker 1: too sure whether needing to change will be a thing. 199 00:10:10,364 --> 00:10:13,934 Speaker 1: So actually has this thing called case trust Mark. If 200 00:10:13,943 --> 00:10:16,374 Speaker 1: you sign up with a package with a salon or 201 00:10:16,383 --> 00:10:19,453 Speaker 1: spa that actually has a case trust mark, they are 202 00:10:19,463 --> 00:10:22,494 Speaker 1: obligated to buy insurance for you for it. What that 203 00:10:22,504 --> 00:10:24,494 Speaker 1: means is that if that establishment 204 00:10:24,745 --> 00:10:27,236 Speaker 1: shut down, the insurance will actually make payouts to you. 205 00:10:27,245 --> 00:10:29,995 Speaker 1: So your advice is if you do decide to sign 206 00:10:30,005 --> 00:10:32,995 Speaker 1: up for a package at a beauty parlor or a spa, 207 00:10:33,216 --> 00:10:36,276 Speaker 1: look for the case trust mark, that's one way to 208 00:10:36,285 --> 00:10:40,835 Speaker 1: safeguard your money. And interestingly enough from 2017 to 2022 209 00:10:40,945 --> 00:10:44,806 Speaker 1: there's actually 100 and 69,000 worth of insurance payouts that 210 00:10:44,815 --> 00:10:47,226 Speaker 1: have been unclaimed by people because I don't think a 211 00:10:47,236 --> 00:10:49,834 Speaker 1: lot of people in Singapore know about this. Wow, 212 00:10:49,927 --> 00:10:53,788 Speaker 1: unclaimed 100 and $69,000. It's a lot of money. Yeah. 213 00:10:53,958 --> 00:10:56,418 Speaker 1: So I think it's one of the efforts that case 214 00:10:56,427 --> 00:10:59,506 Speaker 1: has made within the industry to give it a better reputation, 215 00:10:59,518 --> 00:11:03,057 Speaker 1: especially in the aftermath of lots of salons closing down 216 00:11:03,067 --> 00:11:05,588 Speaker 1: and people being left in the lurch. So in order 217 00:11:05,598 --> 00:11:09,057 Speaker 1: to be case trust accredited, you do have to provide 218 00:11:09,067 --> 00:11:12,747 Speaker 1: this service. So one thing that you can do is 219 00:11:12,756 --> 00:11:15,038 Speaker 1: to look up for the case trust accreditation. 220 00:11:15,250 --> 00:11:17,429 Speaker 1: So you are more assured of where your money is 221 00:11:17,440 --> 00:11:20,099 Speaker 1: going or rather that your money is coming back. Should 222 00:11:20,109 --> 00:11:23,090 Speaker 1: the salon or the spa shut down? Ok. Let it 223 00:11:23,099 --> 00:11:26,460 Speaker 1: be known. You are hearing it here on money talks. Ok. 224 00:11:26,469 --> 00:11:31,359 Speaker 1: Look for the case Trust accreditation and that's how you're 225 00:11:31,369 --> 00:11:34,390 Speaker 1: going to safeguard or ensure that the money you've lost 226 00:11:34,400 --> 00:11:37,679 Speaker 1: to a spa closure comes back to you. 227 00:11:38,090 --> 00:11:41,979 Speaker 1: Ok. So when it comes to stuff like the gym 228 00:11:42,140 --> 00:11:46,099 Speaker 1: or a yoga studio, it does make sense to buy packages, right? 229 00:11:46,109 --> 00:11:49,039 Speaker 1: Because so in my case, I've just recently signed up 230 00:11:49,049 --> 00:11:52,190 Speaker 1: for a Pilates package, I've also signed up for a 231 00:11:52,200 --> 00:11:55,988 Speaker 1: yoga package and I like what some of these studios 232 00:11:56,000 --> 00:11:58,809 Speaker 1: have done so far. There's a lot of flexibility. So 233 00:11:58,820 --> 00:12:04,450 Speaker 1: they offer different categories, different tiers of pricing per class 234 00:12:04,460 --> 00:12:07,700 Speaker 1: because it helps you decide what your commitment level is 235 00:12:07,710 --> 00:12:07,880 Speaker 1: going 236 00:12:07,974 --> 00:12:09,265 Speaker 1: to be, which is one of the things that we 237 00:12:09,275 --> 00:12:12,483 Speaker 1: talked about. So, is it a question then of identifying 238 00:12:12,684 --> 00:12:17,354 Speaker 1: your lifestyle habits and then deciding the best payment method? Yeah. 239 00:12:17,364 --> 00:12:19,564 Speaker 1: So it's a mixture of a couple of things if 240 00:12:19,575 --> 00:12:21,223 Speaker 1: this is the first time you are signing a package 241 00:12:21,234 --> 00:12:23,734 Speaker 1: and there are options to actually go smaller. I would 242 00:12:23,744 --> 00:12:27,265 Speaker 1: recommend doing that first. No one starts off with bad intentions, 243 00:12:27,275 --> 00:12:29,375 Speaker 1: especially at the start of the year when it comes 244 00:12:29,385 --> 00:12:32,395 Speaker 1: to fitness stats have shown that in January, the gyms 245 00:12:32,405 --> 00:12:35,664 Speaker 1: are full always and they are always full on Mondays too. Yeah, 246 00:12:35,674 --> 00:12:37,664 Speaker 1: but by February it starts emptying out 247 00:12:39,020 --> 00:12:40,789 Speaker 1: but don't tell everyone secret. 248 00:12:42,130 --> 00:12:44,539 Speaker 1: But I mean, that is the reality. So while wanting 249 00:12:44,549 --> 00:12:47,130 Speaker 1: to commit to something is great, I think being realistic 250 00:12:47,140 --> 00:12:51,059 Speaker 1: or testing out in smaller batches would be to your advantage. 251 00:12:51,280 --> 00:12:53,449 Speaker 1: So I would say sign up for a smaller package. 252 00:12:53,460 --> 00:12:56,968 Speaker 1: First and if you really enjoy, see yourself enjoying the groove, 253 00:12:57,030 --> 00:13:00,099 Speaker 1: enjoying the facilities, then you commit to a bigger package. 254 00:13:00,219 --> 00:13:03,549 Speaker 1: Yeah, I think that's fantastic advice and that's exactly what 255 00:13:03,559 --> 00:13:05,640 Speaker 1: I did with my yoga package recently. I went for 256 00:13:05,650 --> 00:13:08,869 Speaker 1: a five class pack because I'm new to the studio. 257 00:13:08,880 --> 00:13:10,809 Speaker 1: I don't know if I like the studio. I don't 258 00:13:10,820 --> 00:13:15,130 Speaker 1: know if I like the location, the teachers, the practitioners 259 00:13:15,140 --> 00:13:17,909 Speaker 1: and the facilities and whatnot. So that's really great advice. 260 00:13:18,619 --> 00:13:21,729 Speaker 1: So we're seeing some companies whose business model is pay 261 00:13:21,739 --> 00:13:24,479 Speaker 1: per visit. The other way is also you can book 262 00:13:24,489 --> 00:13:27,409 Speaker 1: a home therapist and pay per use. So do you 263 00:13:27,419 --> 00:13:31,210 Speaker 1: see this as a trend that's happening? It definitely is 264 00:13:31,219 --> 00:13:34,450 Speaker 1: a pin point for some consumers to have to commit 265 00:13:34,460 --> 00:13:37,929 Speaker 1: to a package. So this becomes attractive. It's a market gap. 266 00:13:37,940 --> 00:13:40,679 Speaker 1: So these businesses in my opinion have been really smart 267 00:13:40,820 --> 00:13:42,010 Speaker 1: to be able to find, 268 00:13:42,111 --> 00:13:46,160 Speaker 1: find something to cater to this particular market segment and 269 00:13:46,280 --> 00:13:49,031 Speaker 1: off it. Yeah, that it's a smart move on their part. 270 00:13:49,131 --> 00:13:52,030 Speaker 1: After that, if the customer decides to sign on for 271 00:13:52,041 --> 00:13:56,030 Speaker 1: a package, then it's an organic decision that ok, I 272 00:13:56,041 --> 00:13:58,231 Speaker 1: like the service. I like the company that's doing this. 273 00:13:58,242 --> 00:14:00,971 Speaker 1: They've not pushed me, why not support them and I'll 274 00:14:00,981 --> 00:14:04,030 Speaker 1: continue to use their services. It builds customer loyalty in 275 00:14:04,041 --> 00:14:05,502 Speaker 1: a very organic way, doesn't it? 276 00:14:05,604 --> 00:14:08,033 Speaker 1: Yes, especially if it's very convenient for them as well. Yeah, 277 00:14:08,044 --> 00:14:10,174 Speaker 1: I wouldn't mind a home therapist, maybe I should try 278 00:14:10,184 --> 00:14:14,223 Speaker 1: that myself. One last question for you. Any advice on 279 00:14:14,234 --> 00:14:17,833 Speaker 1: how to approach budgeting and keeping spending in check when 280 00:14:17,843 --> 00:14:21,244 Speaker 1: you're considering these packages? That's a great question. So I 281 00:14:21,254 --> 00:14:23,033 Speaker 1: think the first thing that you need to do is 282 00:14:23,044 --> 00:14:25,393 Speaker 1: to really ensure that space in your budget for it. 283 00:14:25,544 --> 00:14:28,124 Speaker 1: Your basic needs need to be met first. I don't 284 00:14:28,133 --> 00:14:28,994 Speaker 1: think it makes sense 285 00:14:29,096 --> 00:14:32,185 Speaker 1: going into debt just because you need to look good. Yeah, 286 00:14:32,195 --> 00:14:35,736 Speaker 1: the whole treat yourself thing has its limits. Yeah, it 287 00:14:35,745 --> 00:14:38,226 Speaker 1: should definitely not result in you going to debt or 288 00:14:38,236 --> 00:14:41,505 Speaker 1: even compromising your financial future. So I think the most 289 00:14:41,515 --> 00:14:44,255 Speaker 1: important thing first is to know what you're working your 290 00:14:44,265 --> 00:14:48,385 Speaker 1: goals towards and then planning accordingly. And for most Singaporeans, 291 00:14:48,395 --> 00:14:51,306 Speaker 1: I would say we will have enough to then comfortably 292 00:14:51,315 --> 00:14:52,526 Speaker 1: have that extra. 293 00:14:52,880 --> 00:14:55,770 Speaker 1: Then it becomes about prioritizing how you're going to spend 294 00:14:55,780 --> 00:14:58,979 Speaker 1: the extra for some people that might be gym memberships 295 00:14:58,989 --> 00:15:01,400 Speaker 1: for some people that might be beauty treatments. I think 296 00:15:01,409 --> 00:15:03,510 Speaker 1: there's no right or wrong answer. As long as you're 297 00:15:03,520 --> 00:15:07,030 Speaker 1: not compromising your financial future, I think that's good 298 00:15:07,330 --> 00:15:10,609 Speaker 1: and then coming back to the packages because this is 299 00:15:10,619 --> 00:15:13,099 Speaker 1: this or that after all, I would say that it's 300 00:15:13,109 --> 00:15:16,200 Speaker 1: better to pay a bit more each time now than 301 00:15:16,210 --> 00:15:19,039 Speaker 1: to sign away a huge amount and end up not 302 00:15:19,049 --> 00:15:21,359 Speaker 1: using it. The reality is that a lot of people 303 00:15:21,369 --> 00:15:23,510 Speaker 1: do sign up for packages and end up not using it. 304 00:15:23,520 --> 00:15:28,479 Speaker 1: Finder did say that Americans spend $397 million on unused 305 00:15:28,489 --> 00:15:29,159 Speaker 1: gym members. 306 00:15:29,729 --> 00:15:32,309 Speaker 1: Oh, wow. So that's the money that's wasted. Yeah. So 307 00:15:32,320 --> 00:15:35,619 Speaker 1: that translates to about 67% of full memberships that people 308 00:15:35,630 --> 00:15:39,309 Speaker 1: sign and never utilize at all. Yeah, I do think 309 00:15:39,320 --> 00:15:41,200 Speaker 1: that we are a bit better in this part of 310 00:15:41,210 --> 00:15:43,669 Speaker 1: the world because our parents taught us well to not 311 00:15:43,679 --> 00:15:46,880 Speaker 1: waste money. Fingers crossed. Yeah, but the reality is that 312 00:15:46,890 --> 00:15:49,789 Speaker 1: there are quite a number of people who have packages 313 00:15:49,799 --> 00:15:51,130 Speaker 1: that they don't complete. 314 00:15:51,619 --> 00:15:54,820 Speaker 1: So rather than putting yourself in such a situation, do 315 00:15:54,830 --> 00:15:57,320 Speaker 1: look at the location of the place, how realistically you're 316 00:15:57,330 --> 00:15:59,830 Speaker 1: going to use it and whether the service ends up 317 00:15:59,840 --> 00:16:01,150 Speaker 1: being what you like it to be, 318 00:16:01,440 --> 00:16:03,979 Speaker 1: it's more important to pay per use until you can 319 00:16:03,989 --> 00:16:06,609 Speaker 1: figure those things out and then sign up for the packages. 320 00:16:06,619 --> 00:16:10,390 Speaker 1: But gradually start with something small, know that you can commit. 321 00:16:10,400 --> 00:16:12,770 Speaker 1: And if you really like it, then sign on longer, 322 00:16:12,780 --> 00:16:16,609 Speaker 1: that is sage advice and certainly something that I would 323 00:16:16,619 --> 00:16:20,450 Speaker 1: personally subscribe to. So that promotional price on a beauty 324 00:16:20,460 --> 00:16:24,400 Speaker 1: package may seem alluring at first. But do consider if 325 00:16:24,409 --> 00:16:24,710 Speaker 1: you would 326 00:16:24,789 --> 00:16:28,419 Speaker 1: actually use all the services or if the upfront payment 327 00:16:28,429 --> 00:16:32,380 Speaker 1: is something you are comfortable with. I will gladly pay 328 00:16:32,390 --> 00:16:35,859 Speaker 1: a few $100 for treatment at a place that I 329 00:16:35,869 --> 00:16:39,580 Speaker 1: completely trust or have gone to for many, many years. 330 00:16:39,590 --> 00:16:43,080 Speaker 1: But I'm also mindful of the basics of financial common sense. 331 00:16:43,090 --> 00:16:48,059 Speaker 1: Don't over commit. Don't overstretch where you cannot reach. Thanks 332 00:16:48,140 --> 00:16:51,309 Speaker 1: Ken for helping us weigh the options on this or that. 333 00:16:51,419 --> 00:16:54,150 Speaker 1: And thanks to you, our listener, if you've enjoyed this 334 00:16:54,159 --> 00:16:57,260 Speaker 1: episode of Money Talks, there is more content for you 335 00:16:57,270 --> 00:17:00,950 Speaker 1: to enjoy. Always simply follow us on Apple podcasts or 336 00:17:00,960 --> 00:17:04,420 Speaker 1: Spotify and give us five stars or leave a review. 337 00:17:04,589 --> 00:17:07,920 Speaker 1: The team behind Money Talks is Joanne Chan, Jacqueline Chan 338 00:17:07,930 --> 00:17:11,069 Speaker 1: Christina Roberts and I'm Andrea. He.