4 ms·
Not sure if this is what you meant or not, but while some of the discount comes from the TVM side of things, I'd venture to guess a much larger source of the di
by drusenko 17y ago
Not sure if this is what you meant or not, but while some of the discount comes from the TVM side of things, I'd venture to guess a much larger source of the discount comes from the fact that they have locked you in to a 6 month pass.
If you picture the monthly pass as a monthly subscription, then think of a reasonable retention rate for this situation (something less than 100% month-over-month), the value of guaranteeing 6 purchases up front starts to become significant.
- ojbyrne 17y agoLocking you into a pass for six months means they don't have to have as much cash on hand to deal with uncertainty. So they can invest additional cash in securities with 6 month terms.