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...Read More
Pro Rating Government Fees, or “Rounding Up Down” If you started a one year newspaper subscription on, say, March 7, the one year anniversary would be . . . March 7, right? And if you joined Sam’s Club on October 14, your one year anniversary would be — yup — October 14. (Bear with me, these aren’t...Read More