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There's no marginal cost (effectively) on a single gym visit. If 100 people use moviepass, moviepass loses 100*$X If 100 people use a gym membership. The gym
by shawabawa3 7y ago
There's no marginal cost (effectively) on a single gym visit.
If 100 people use moviepass, moviepass loses 100*$X
If 100 people use a gym membership. The gym loses $0. And maybe a few people cancel because it's too crowded (or better yet, don't cancel but stop coming)
- paxys 7y ago> And maybe a few people cancel because it's too crowded Wouldn't you consider that a per-visit cost?
- hacym 7y agoNo, why would you? Attaching a cost to someone unable to visit the gym due to "overcrowding" wouldn't make business sense since you're unable to determine if that is actually the case or if they weren't coming for another reason. A customer with a gym pays a monthly rate... That rate is paid even if they use it. The running cost of the gym remains the same whether or not someone comes to the gym. This comparison, then, doesn't make sense. MoviePass is paying directly each time a customer uses the service. While both services are better off with people simply giving their money for something they don't use, only MoviePass actually LOSES money if people are using the service. The gym, on the other hand, doesn't.