If the business model doesn’t allow them to have those situations written off as a loss leader then they need to reevaluate the business model.
The vast majority of the people should forget to cancel and the cost should be enough for you to manage, for some of your customers to get amazing Utility from your service, and for most of your customers to consider your service so valuable they couldn’t think to get rid of it, even if they don’t utilize it fully.
Disney offers meal plans with your vacation. Most people don’t use all the benefit, some people do, and even less people manage to eat at all the most expensive and prestigious places for their meals because they knew how to utilize their benefits to their maximum potential.
Same with game pass, Amazon prime, and basically any prepaid service. The whole thing is balanced to be enticing, convenient, and potentially a massive value prospect to keep people in that golden spot of FOMO so they buy in and not cancel, but not such a great value that you cannibalize your other monetization streams.
Here they made it apparent that it’s not a good value, there is no situation where i can come out on top, so instead of losing on my monthly sub, they also lost unit sales and any good memories and associations I had with their products and services in the past.
There are plenty of things that aren’t illegal but are counter to your intended goals.
Edit: sorry for the wall of text, you caught me with lots to say I guess.
That’s a good way of putting it, and it says a lot that they would happily take a loss if it means that there’s no chance you could get an edge over them.
If the business model doesn’t allow them to have those situations written off as a loss leader then they need to reevaluate the business model.
The vast majority of the people should forget to cancel and the cost should be enough for you to manage, for some of your customers to get amazing Utility from your service, and for most of your customers to consider your service so valuable they couldn’t think to get rid of it, even if they don’t utilize it fully.
Disney offers meal plans with your vacation. Most people don’t use all the benefit, some people do, and even less people manage to eat at all the most expensive and prestigious places for their meals because they knew how to utilize their benefits to their maximum potential.
Same with game pass, Amazon prime, and basically any prepaid service. The whole thing is balanced to be enticing, convenient, and potentially a massive value prospect to keep people in that golden spot of FOMO so they buy in and not cancel, but not such a great value that you cannibalize your other monetization streams.
Here they made it apparent that it’s not a good value, there is no situation where i can come out on top, so instead of losing on my monthly sub, they also lost unit sales and any good memories and associations I had with their products and services in the past.
There are plenty of things that aren’t illegal but are counter to your intended goals.
Edit: sorry for the wall of text, you caught me with lots to say I guess.
That’s a good way of putting it, and it says a lot that they would happily take a loss if it means that there’s no chance you could get an edge over them.