The increasing quest for recurring income.

 THE EFFORT TO BLEED CONSUMERS REGULARLY

MOVING AWAY FROM OWNING ANYTHING 

 

If you are paying attention, it is becoming clear that the new trend is to have consumers no longer buy anything that does not have a lifetime of continued payments attached. In effect, big business is on a road of demanding continued payments for the use of software, or subscriptions attached to new cars or other major appliances. This is often labeled as computer upgrades etc. Many people who do not keep track of their finances fail to realize they are often paying monthly fees for many things they either no longer own or services they no longer use. 

 

In the pharmaceutical business the focus has been on maintenance drugs, drugs that they expect the patient will use regulatory for the rest of their live. This often results in actual cures or 1 time prevention drugs put aside in favor of recurring revenue. 

 

Farmers  lobby congress to intervene in the production of farm equipment that is increasingly computerized, require monthly subscription fees for upgrades and often requiring propitiatory software to diagnose the problems causing long delays and often costing them time in harvesting of crops.  The revenue of John Deere has fallen near 50 % as farmers have rebelled and moved to manufacturers who are still making more maintainable equipment. 

 

Microsoft, the premier software company that has historically had a near monopoly on operating systems installed on most computers is now also feeling push back. Lenovo the largest by volume producer of computers has now made Linux the default operating system., Microsoft is now a option with added fee. Hewlett Packard the second largest producer is now not including Operating systems in their computers they are now an option. Much has to do with Windows 11  which requires new hardware making many good computers instantly obsolete and it seems Microsoft is planning on requiring monthly subscriptions with fees for cloud storage and software rental. 

 

The auto manufacturers are attempting in going down the same road with monthly subscriptions, proprietary software to cut out small repair shops and an endless costs of up grades and factory or dealer maintenance. 

 

This trend is leaving a door open for new  producers to offer simpler, less complicated equipment that the customer can own outright and have more control of their equipment and their lives.