Two-Tiered Pricing, or, “The ‘Annual Membership’ Business Model”
To the long list of consumer goods offered at a discount to Amazon Prime members, add one more: Thanksgiving turkey at newly-acquired Whole Foods.
Sound familiar?
It should.
Training shoppers to pay an annuity-like annual (membership) fee is the business model of competitor Costco.
See also, “Conversion Therapy: An “Amazon Atheist” Gets Religion“; “Is Amazon a Costco-Killer?”; “Does Amazon Violate U.S. Antitrust Law?” ; and “Parsing Amazon’s Q2 2017 Results (Pssst! Don’t Bother Calculating the P/E Ratio).”
