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> When a Match.com asks me to pay $30 a month, I cringe. I'm perplexed by this. As other commentors said, it's partially volume. Second, it's partially strate
by lionhearted 16y ago
> When a Match.com asks me to pay $30 a month, I cringe. I'm perplexed by this.
As other commentors said, it's partially volume.
Second, it's partially strategy - Netflix could charge more, but have a smaller customer base. Even if the net profit for the short term was higher at a higher price point, they might think it's worth it to get market share, word of mouth, and future expansion.
Third - for some services, customers see higher price as a desirable attribute. That could be the case in dating - people in certain demographics might prefer to know whoever else is using the site is serious enough to pay a decent chunk of coin, not just throwing a profile up for kicks.
Lots of factors. Shortest answer is - strategy. Netflix might be able to make higher short term revenues and net profit, but they might prefer the lower-price driven expansion to get economies of scale, volume, market share, word of mouth, and loyalty. Match.com might be able to make higher short term revenues and profits by lowering price and attracting more users, but instead they prefer trying to brand and position themselves as a premium, curated, high-quality site for serious people. Strategy is complex, lots of layers you can look at it, especially when playing at that really high dollar level.