Ecommerce

How to handle subscription pricing value

as the company, is it better to prorate pricing, or charge per month?

  • My gym membership can be cancelled at any time and I will have however much gym time I didn't use refunded to me. It is prorated. If I on the other hand I want to cancel Amazon, I learn that there is billing once per year for the membership. There's a hard deadline that I have to hit if I want to avoid paying for an entire year in one go.
  • Interesting to me, I'm not very motivated to cancel the membership, simply since each day only adds slightly more cost to the previous day. It is a slow bleed, and I can barely notice it when it happens.
  • I believe that companies giving out subscriptions should therefore allow retroactive reimbursements for unused time on all subscriptions. The slower bleed will have been more unaware of the cost that they are putting out

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