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goosejuicetoday at 1:37 AM2 repliesview on HN

> Just because outliers can be money-losing doesn’t mean you should raise the price for everyone.

If they are losing money then it's not priced correctly. That's what I responded to.

Yes, subscriptions work as you say. Plenty of people under utilize subscriptions from prime, to credit cards, to netflix. But if they lost money overall, they too would raise prices. Because that's how economics works. Shortage of capacity, high demand, raise prices until equilibrium.

There's other knobs beyond ToS. They just didn't choose those options.


Replies

crotetoday at 9:21 AM

> If they are losing money then it's not priced correctly.

Just a few years ago this was the standard business model for startups: attract VC money, offer plans at a loss, capture a huge market, boil the frog with incremental price increases to become profitable.

Companies like Uber wouldn't have been anywhere near as successful if they had been forced to make a profit from day one.

jmalickitoday at 1:46 AM

Yes, they chose the knob of ToS, because that was the way to price it correctly.

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