In a recession, people become more money conscious
It’s only natural for people to hold on to what they have on hand during a recession, given the uncertainties that surround them. They’re no longer assured of their regular income, as businesses struggle to stay afloat and people get laid off in droves. The cost of living may also surge due to inflation, with the purchasing power of average income earners eroding by the day.
Governments understand how important consumer confidence and purchasing power are to the health of the economy. Stimulus packages aimed at supplementing lost or diminished income for average households are often parts of the government’s first response against a recession. Companies, too, get boosts from governments – for instance, zero-interest loans that help companies weather the storm and avoid downsizing their staff.
But such intervention hardly goes a long way in boosting customer confidence, because they’re temporary. Consumers still think much harder about every penny they spend, until they’re certain about their financial stability. So businesses have to do what they can to cut costs, and a great place to start is shopping around for the right small business phone During a recession, the typical household cuts down spending on luxuries, focusing on staples instead – and a great place to start is your family’s phone plan.
Phone plans have become staples
These days, phones have become a staple – almost every member of the family has one. You may have more than one family member who’s working from home, or a social media fanatic, or a movie buff. Family members may also have live streaming habits, watching sports and shows or making video calls frequently.
Top telcos recognize that these families need plans with enormous data inclusions rather than single individual plans with minimal data, and they’ve made these plans highly affordable for average families. In fact these plans come with greater data-to-dollar rates the bigger their data inclusion. With these plans, each family member gets a greater amount of data per cent compared to individual plans.
Contracted phones usually result in more expensive phone bills
Several factors determine how expensive your phone plan is. In some cases, a prepaid plan is cheaper, and in some others, a postpaid plan is. However, contracted phones are usually the most expensive in the long-run, mostly because they allow you to own a phone without paying any significant sum upfront.
Sometimes, people who foot monthly phone contract bills are hard-pressed to pay their bills on time, and may default. In the process, they’re slapped with fines which further increase the cost of their phone plans. In other cases, the contracted phones may prevent the phone owner from taking advantage of cheaper mobile plans from other carriers. Because if they want to cancel the contract, they may have to pay the remainder of the contract up front (including termination fees in some cases).
Whether you’re looking to choose a prepaid or postpaid plan, do some research to ensure you choose a plan that best suits your needs. We’ve put together a detailed phone plan guide to get you started, and it’s free.
WhatPhone’s free phone plan guide
We’ve covered the research part for you, and put all our key findings into free phone plan guide. Here’s what you get:
- Explanations, FAQs, and a section to make personal notes.
- Key facts, including independent statistics about market trends.
- Issues like the cost-effectiveness of various phone contract plans and SIM-only plans.
- Debunked myths and misconceptions that may mislead you.
- Explanation of key concepts like PAYG plans, SIM-only plans, BYO phone plans, Long Expiry, etc.
- List of the current best-selling plans in the market.
Final words – Comparing long expiry vs prepaid vs postpaid
Shopping phone plans during recession is best when you know what type of plan is right for you. Should you get a postpaid plan or prepaid plan or long expiry plan?
And knowing which plan to choose has to start with you knowing what the different types of plans mean, and what they offer.
Many customers normally don’t have the time or patience to read through the fine prints of their phone plans. In our free phone guide, we’ve laid out these terminologies in an easy-to-digest format, so you know exactly what type of plan suits your needs.
Here’s a quick rundown of the types of plans available:
- Prepaid plans:
Paid for upfront and don’t require a credit check.
- Postpaid plans:
Paid for after the plan inclusions are used, on a monthly basis, and sometimes on a long-term contract (12-36 months). They usually require a credit check.
- Long expiry plans:
These are a special subset of prepaid plans that come with an ‘expiry period’ of over a month (6-12 months in some cases).