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by skeletron
1703 days ago
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I just downloaded the Android app to check, and it's a similar ratio as you describe for the Apple app store: £19.99 per month if paid monthly, but £7.17 per month (as £85.99 per year) if paid annually. And on my phone at least, the monthly payment option is also hidden behind a scroll down action: https://i.imgur.com/rV0bMTH.jpg, with the yearly subscription already selected by default. It would seem they're pushing quite strongly this annual payment option. |
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As someone who's worked on pricing models, this speaks either to very little thought to pricing or a monumental churn issue.
A hefty discount for an annual subscription is generally something like 20%, and companies with good retention only offer ~10%.
Discounting over 50% if someone chooses annual either tells me (1) this company is low on funding and desperately needs the immediate cash flow, or (2) this company can't retain customers and is really lacking product-market fit.
Old YC would have absolutely helped the founders straighten this out, but it seems YC is now just a big cash grab and rolodex in the form of Bookface.