|
|
|
|
|
by rrrrrrrrrrrryan
1705 days ago
|
|
> gyms From my understanding, the profitability of gyms is actually dependent upon some sizable percentage of people paying for a membership and not using it. If that cohort didn't exist, membership fees would have to be much higher. Software subscriptions are different though, as the variable costs are negligible: the cost associated with providing service to each new user is next to nothing. Personally, I'd be way more likely to sign up for a paid subscription if I knew they would automatically stop charging me if/when I stop using the service. |
|
Depends on the service. Many boast about their large or unlimited storage for user's data, but this part of their marketing relies on the assumption that almost nobody will actually use a noticeable amount of the offer.
It's similar to the dishonest, but sadly normalized practice of ISPs, where the bandwidth offered would be impossible to provide if a significant number of customers tried to use it at once.