4 ms·

Anecdotally makes sense. Coupons attract scarcity mindset people. If your product targets more time poor money rich growth mindset people, this is a bad fit.

Anecdotally makes sense. Coupons attract scarcity mindset people. If your product targets more time poor money rich growth mindset people, this is a bad fit. My wife has a friend that did every Groupon known to man. She routinely signs up for gyms that have a 30 day special then quits. She says she wants to get in shape but can’t get over her own scarcity mindset to just pay for a regular gym continuously.

baq 3y ago
She says she wants to get in shape but actually she likes visiting new gyms. Nothing wrong with that, right?
- steveBK123 3y ago
  She is a gym member maybe 1 out of 3 months because she is perpetually rotating through the deal she can get. The secret to this stuff is boring - persistent, continuous effort. If you can't even maintain a regular gym membership, you will not get that effort in. She's been complaining for over a decade as she continuous this charade.
  - dahart 3y ago
    To be fair, gym memberships are often crappy rent-seeking contracts. They love it when people start memberships for their New Year’s resolutions and then stop coming in February but keep paying, and they often try to hike the prices on you, renew automatically, and make it difficult to cancel. I’m perfectly fine with paying for a gym but I absolutely hate signing up for memberships. Currently I’m going to a city-run gym that has a day rate, and it’s more expensive than a monthly or yearly rate, and I still pay it happily and I feel like I’m getting a good deal, because I’m paying as I go for what I use and I’m not locked in and there’s no risk of wasting money. Maybe she’s actually staying more motivated to go this way, maybe her engagement is higher than if she paid. Or, maybe she’d love it if you gave her a gift and pre-paid for 6 or 12 months of membership somewhere? You could even tell her you got a deal, which is true regardless of what you pay. Valentine’s Day is here…
    - steveBK123 3y ago
      You actually hit the nail on the head re: gift giving. I stumbled upon this years ago with family more.. If you want to gift anything nice to family who is more scarcity mindset, you absolutely HAVE to talk up the deal/discount you got, or how you paid for it with points that were going to expire, or something. It's also better if the thing you are gifting has opaque pricing / is somewhat custom or uncommon so they can't just google the price. Anyway.. everything turns into sales/marketing sometimes!
    - hakfoo 3y ago
      I'm amazed at this point, given the "subscriptions are a nightmare to cancel" meme, that nobody's turned that into a marketing message. Some of the gym ads say "cancel anytime", but "sure, just bring in this blood-endorsed document countersigned by at least five Supreme Court justices" is still implied. Services that say "prepay up-front and we'll never bill you" is a viable selling premise. Gift subscriptions are an obvious viable business that comes out of that model. I wanted to get my father a gift subscription to the local newspaper, and they basically had no idea how to handle a fixed-term subscription-- all they could point to were recurring auto-pay setups.
      - jyunwai 3y ago
        In 2016, a gym in Canada had a news article written about it in The Globe and Mail, a national newspaper [1], due to the notability of its policy at the time of only offering a pay-as-you-go plan. You would pay each time you visited, until you hit a cap at a maximum fee per month—this would make future visits free for this period. The marketing clearly worked, as the business earned a national news article solely due to this policy. However, after some time, the gym changed the policy to offer discounts for people who signed a contract—effectively make it more expensive for people to pay-as-you-go without easier cancellation. As of now, I can no longer find pricing on their website (maybe it's there, but I've looked around a while), nor any mention of their once-notable pay-as-you-go model. Instead, the gym's website now focuses on encouraging members to sign up for a personal trainer. At least in this case, the gym showed that the "prepay and we'll never bill you" policy was, as you predicted, a headline-grabbing policy. But it appears that the owners decided it was more profitable to either cancel or de-emphasize the policy and promote the usual payment model for gyms, even at the cost of standing out from other gyms. [1] https://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/pay-per-use-gym-offers-contract-free-workouts/article29249178/ https://www.theglobeandmail.com/report-on-business/small-bus...
AlexandrB 3y ago
It's really weird to frame this as a question of "mindset". I certainly had a "scarcity mindset" when I was younger and had no money. Now that I'm older and have some money I have a "growth mindset". But really the main difference is my access to resources.
- warner25 3y ago
  I agree with you. I've seen other people write about this before and it seems that the people talking about it are people who happen to make a lot more money than the average person. Good for them, but that doesn't mean that people who make less money just have the wrong mindset or some kind of moral failing. I apparently have gone from an extreme "scarcity mindset," when I was in my 20s with questionable job security, to a moderate "scarcity mindset" now that I'm in my late 30s with a higher income, better job security, and 10x more in savings. It's still moderate because I'm a government employee with a relatively low ceiling on what I can make; not much room for growth.
  - steveBK123 3y ago
    There's nothing wrong with either mindset, most people are incapable of doing both at once. You can have "scarcity mindset" and be rich. Of course someone with scarcity mindset grows savings over time because they have scarcity mindset! They are good at saving your money! But this part: > It's still moderate because I'm a government employee with a relatively low ceiling on what I can make; not much room for growth. Pretty firmly puts you in one bucket. You might have more money, but you are asserting that in your 30s your growth is limited. Someone with a growth mindset would not settle into that job & accept that life path. They'd be job hopping, running a side gig for extra income, squirreling away every last dime into investments so that they can immediately flip into private business at early retirement, etc. Getty is an example of a really rich guy with scarcity mindset. My parents & in-laws were scarcity mindset.. which is how they retired at 59! People think it's a slur, it is not!
    - warner25 3y ago
      I see where you're coming from regarding "[settling] into that job & [accepting] that life path" as a government employee. I thought about that after I wrote it myself. The alternative, however, strikes me as taking imprudent risks, if one is supporting a family, and having a work-life balance that one's family wouldn't appreciate (mine already thinks that I work too much). You're right on the mark: my savings rate, and government pension, should result in early retirement. I think I'm interested in having more time, not more money. I'm really content with consuming relatively little. Maybe it's the "scarcity" and "growth" parts of the terminology that I take issue with, but I'm not sure what better descriptive terms would be. Edited to add: The more verbose descriptions that you wrote in your other comment make sense... "I'm going to make as much money as possible" vs "I'm going to spend as little money as possible"

baq 3y ago

She says she wants to get in shape but actually she likes visiting new gyms. Nothing wrong with that, right?

steveBK123 3y ago
She is a gym member maybe 1 out of 3 months because she is perpetually rotating through the deal she can get. The secret to this stuff is boring - persistent, continuous effort. If you can't even maintain a regular gym membership, you will not get that effort in. She's been complaining for over a decade as she continuous this charade.
- dahart 3y ago
  To be fair, gym memberships are often crappy rent-seeking contracts. They love it when people start memberships for their New Year’s resolutions and then stop coming in February but keep paying, and they often try to hike the prices on you, renew automatically, and make it difficult to cancel. I’m perfectly fine with paying for a gym but I absolutely hate signing up for memberships. Currently I’m going to a city-run gym that has a day rate, and it’s more expensive than a monthly or yearly rate, and I still pay it happily and I feel like I’m getting a good deal, because I’m paying as I go for what I use and I’m not locked in and there’s no risk of wasting money. Maybe she’s actually staying more motivated to go this way, maybe her engagement is higher than if she paid. Or, maybe she’d love it if you gave her a gift and pre-paid for 6 or 12 months of membership somewhere? You could even tell her you got a deal, which is true regardless of what you pay. Valentine’s Day is here…
  - steveBK123 3y ago
    You actually hit the nail on the head re: gift giving. I stumbled upon this years ago with family more.. If you want to gift anything nice to family who is more scarcity mindset, you absolutely HAVE to talk up the deal/discount you got, or how you paid for it with points that were going to expire, or something. It's also better if the thing you are gifting has opaque pricing / is somewhat custom or uncommon so they can't just google the price. Anyway.. everything turns into sales/marketing sometimes!
  - hakfoo 3y ago
    I'm amazed at this point, given the "subscriptions are a nightmare to cancel" meme, that nobody's turned that into a marketing message. Some of the gym ads say "cancel anytime", but "sure, just bring in this blood-endorsed document countersigned by at least five Supreme Court justices" is still implied. Services that say "prepay up-front and we'll never bill you" is a viable selling premise. Gift subscriptions are an obvious viable business that comes out of that model. I wanted to get my father a gift subscription to the local newspaper, and they basically had no idea how to handle a fixed-term subscription-- all they could point to were recurring auto-pay setups.
    - jyunwai 3y ago
      In 2016, a gym in Canada had a news article written about it in The Globe and Mail, a national newspaper [1], due to the notability of its policy at the time of only offering a pay-as-you-go plan. You would pay each time you visited, until you hit a cap at a maximum fee per month—this would make future visits free for this period. The marketing clearly worked, as the business earned a national news article solely due to this policy. However, after some time, the gym changed the policy to offer discounts for people who signed a contract—effectively make it more expensive for people to pay-as-you-go without easier cancellation. As of now, I can no longer find pricing on their website (maybe it's there, but I've looked around a while), nor any mention of their once-notable pay-as-you-go model. Instead, the gym's website now focuses on encouraging members to sign up for a personal trainer. At least in this case, the gym showed that the "prepay and we'll never bill you" policy was, as you predicted, a headline-grabbing policy. But it appears that the owners decided it was more profitable to either cancel or de-emphasize the policy and promote the usual payment model for gyms, even at the cost of standing out from other gyms. [1] https://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/pay-per-use-gym-offers-contract-free-workouts/article29249178/ https://www.theglobeandmail.com/report-on-business/small-bus...

AlexandrB 3y ago

It's really weird to frame this as a question of "mindset". I certainly had a "scarcity mindset" when I was younger and had no money. Now that I'm older and have some money I have a "growth mindset". But really the main difference is my access to resources.

warner25 3y ago
I agree with you. I've seen other people write about this before and it seems that the people talking about it are people who happen to make a lot more money than the average person. Good for them, but that doesn't mean that people who make less money just have the wrong mindset or some kind of moral failing. I apparently have gone from an extreme "scarcity mindset," when I was in my 20s with questionable job security, to a moderate "scarcity mindset" now that I'm in my late 30s with a higher income, better job security, and 10x more in savings. It's still moderate because I'm a government employee with a relatively low ceiling on what I can make; not much room for growth.
- steveBK123 3y ago
  There's nothing wrong with either mindset, most people are incapable of doing both at once. You can have "scarcity mindset" and be rich. Of course someone with scarcity mindset grows savings over time because they have scarcity mindset! They are good at saving your money! But this part: > It's still moderate because I'm a government employee with a relatively low ceiling on what I can make; not much room for growth. Pretty firmly puts you in one bucket. You might have more money, but you are asserting that in your 30s your growth is limited. Someone with a growth mindset would not settle into that job & accept that life path. They'd be job hopping, running a side gig for extra income, squirreling away every last dime into investments so that they can immediately flip into private business at early retirement, etc. Getty is an example of a really rich guy with scarcity mindset. My parents & in-laws were scarcity mindset.. which is how they retired at 59! People think it's a slur, it is not!
  - warner25 3y ago
    I see where you're coming from regarding "[settling] into that job & [accepting] that life path" as a government employee. I thought about that after I wrote it myself. The alternative, however, strikes me as taking imprudent risks, if one is supporting a family, and having a work-life balance that one's family wouldn't appreciate (mine already thinks that I work too much). You're right on the mark: my savings rate, and government pension, should result in early retirement. I think I'm interested in having more time, not more money. I'm really content with consuming relatively little. Maybe it's the "scarcity" and "growth" parts of the terminology that I take issue with, but I'm not sure what better descriptive terms would be. Edited to add: The more verbose descriptions that you wrote in your other comment make sense... "I'm going to make as much money as possible" vs "I'm going to spend as little money as possible"