I suspect it’s also good for the company… guarantees cash flow throughout the more volatile period (summer) when it may be difficult for the company to predict how many people will drop their memberships. I’ve been a subscriber since 2012 and have never discontinued my subscription… they’re making less on me per year, but they can count on my fee every year, which makes it easier to make payroll and not have to hire in the fall and let go in the spring.
I think it’s a great trade off / balance, but I wouldn’t be shocked if there’s ever a slight upward adjustment on those with legacy pricing (like a % increase)…
I’m pining for Hammerhead and TR to bring outdoor workouts to the Karoo. That will give me motivation to use TR in the summer and make it an even better value.
Your analogy is not correct either. I don’t have two pools I have one 35k pool that I pay for every year. You somehow think that you’re paying more than me because you don’t count the money I’ve put into my pool over the years.
I always find these debates about companies’ pricing strategies interesting, mostly in the expectations they illustrate. Such as - “fair pricing”.
Where in The Rules Book does it say suppliers have to offer “fair pricing”? When you sit in a commercial flight and the passenger to your left has paid half as much as you did, and the one on your right twice as much, is that “fair”? If you offer new users a discount on a couple of days around a US holiday, which discount would obviously not apply to existing users, is that “fair”? What is “fair pricing”, anyway?
The illusion that grandfather pricing impacts new user pricing is also just that - an illusion. The former is set to reduce churn in longer-term users, the latter is set to be competitive against the alternatives offered to new users.
then he corrected himself and said “legacy pricing” because “grandfather clause” has racist origins to prevent black people from voting and having equal rights.
Good catch. I didn’t remember the words exactly. The thing that stuck out to me, was that there’s the clause that it’s as long as he’s CEO. So it’s not forever, but it is for a while.
TR is amazing value, even at $500/year, if you are training hard and have some big goals to hit. If you are just a member for a few random workouts a month, then it starts to get expensive. Much like gym memberships in general.
I like to have my membership in the summer if for no other reason than sometimes it’s easier/faster to just hop on the trainer than to get out somewhere I can ride outside of town. Especially true for the rainy days! @timon thanks for sharing… I had no idea!
