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>"We’d kill the subscription model..." I tend to be wary of any service with ongoing running costs sold as a one-time fee. As long as new sales exceed the cos
by incision 13y ago
>"We’d kill the subscription model..."
I tend to be wary of any service with ongoing running costs sold as a one-time fee.
As long as new sales exceed the cost of servicing the existing population everything is fine. Once that relationship reverses all bets are off.
That said, I like this idea and $25 is a better price point that I would have expected.
- protomyth 13y ago> I tend to be wary of any service with ongoing running costs sold as a one-time fee Well, they aren't really charging a one time fee, they're charging per notebook.
- incision 13y ago>"Well, they aren't really charging a one time fee, they're charging per notebook." Sure, a one time fee per notebook. The "per" doesn't make it a different model.
- wlesieutre 13y agoI think the closest analogy is pay-per-minute cell phones. No automatically renewing bill, but they do get recurring income from people who keep using it. Call it a one time fee per notebook if you want to, it's still a revenue stream per user than can keep them in business as long as users are using and replacing notebooks. So the important nuance regarding your previous comment is that "new sales" doesn't mean "new users." You could run a stable business off of this with a steady user base, unlike a pay once use forever model. This feels like a better bet for them than subscriptions. I certainly wouldn't have been interested in their previous model, but now I am.
- aestra 13y agoThe solution is obviously to have 2 tiers, a subscription model for heavy users and a per book model for light users.
- Timothee 13y agoWhat are the ongoing running costs though? Serving the scanned images? Sure, but if the only way to add more data to that bucket is to keep buying notebooks, that should be fairly safe. The hosting costs should be very low compared to the price of the notebook. And if you continue accessing your files, you're likely to want to buy more notebooks.