[laurenkay]

If we did that, we'd have to charge $100/match. That's why we have Premium - it's a higher price point for a guaranteed date. But in order to personally match people and provide great customer service, you can't guarantee a date for $20. At least not yet, unfortunately.

[shkkmo]

That $100 pricing doesn't make sense to me.

$20x2 per match is your baseline income per match here which I assume covers your costs.

1st try gets rejected, $20 bucks from the rejecter 2nd try gets rejected, $20 bucks from the rejecter 2rd try gets rejected, $20 bucks from the rejecter

So $60 a month should cover it, assuming that you have a 100% rejection rate.

$35 (.5 x 20 + .25 x 40 + .25 x 60) a month should cover it if you have a 50% rejection rate.

So assuming you have a 50% or less rejection rate, I would pay $35 a month for at-least a 7/8 chance of meeting someone every month.

[shkkmo]

Using a similar formula,

$100/match to provide a guaranteed date would mean that your rejection rate is about 83%. Estimated using this forumula: (5 = x^1 + x^2 + ... x^n) and solving for x as the probability of rejection. I used an n of 29 for the estimate.

[csdrane]

How'd you derive that formula?

[shkkmo]

Poorly, I apparently missed the first term of X^0 $100 = expected cost of matches $20 = cost on this side per match X = probability of rejection (which leads

expected cost = cost of first match times probablity it is needed plus cost of second match times probability it is needed... plus cost of nth match times probability it is needed.

100 = 20x^0 + 20x + 20x^2...20x^n 5 = x^0 + x^1 ... x^n

The actual number is more like 72% :/