PeterC99
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Very good business analysis!I think even at a $10 a month price point, the value, as currently proposed, that you would get for it just isn’t there. For me, all of the stuff besides the discount and QTed fish and corals is ancillary and not really part of the core value, they are the sort passive perks membership. QT being one of the core draws, I would have to be confident that proper QT practice was being followed (not just observation) for me to trust it, if I don’t fully trust it, and still have to QT, then it too becomes an ancillary part of the value proposition.
So then it just comes down to the discount, which as someone else mentioned, you’d have to spend $1200 or $2400 to break even, which is more than most reefers spend on livestock (especially people with established reefs) in a year. So, I think for building a community, this isn’t the right price point. I think when you look at other sort niche business that offer programs like this, they usually charge $15-$20 per year and you get 10%-15% certain product categories and a bunch of other perks, Gamestop comes to mind.
The idea is to give the impression that your getting this great value (when the real point is to get people in the store and to upsell). I think for something like this to work, there has to be some real tangible value there. At even $10 a month, I would have to spend at least $100 to just break even, not even feel like I’ve gotten a deal. Even with all of these other ancillary/passive points of value, in the moment, if I spend $10 on my monthly fee and then only spend $70 on livestock in that transaction, I’m going to come away feeling like it wasn’t worth it. The price of the membership needs to feel like a good value at the initial point of sale, either by getting me a discount greater than the price entry on my purchase today, or by giving me more time than until the end of the month (and not requiring me to spend $1200-$2400 to just break even) to use the benefits I’m paying for today. So, for me, this would have to either have way more tangible value added for this price point, or at the current offering cost $15-$20 per year.