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Using Price to Signal Value, and That's a Playbook Theme
The company is using price to signal value, and that's supposedly another one of the big things that really helped, really help sales take off. This is an unbelievably sticky business. When you look at most consumer businesses, they're like 50 % annual churn y. And what happens when you pick people with extremely low priced sensitivity, and you select for only people who are willing to throw 23 hundred dollars, post tax, at an exercise pike? They're pretty unlikely to churn even if your fitness subscription is pretty expensive.