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With a daily fee the gym would get some new customers at $3. But of those who currently pay $90 almost none go the gym every day in a month so the gym would be losing a lot of money on its current customers.
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Oh I assumed he just meant denominated by day but maybe still billed monthly. Thoughts on that case?
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Ah good point. Not so bad in that case but I think the daily price still induces short run thinking. $3 a day, will I use the gym today or tomorrow? No. While the monthly or yearly membership induces long term thinking--I am going to lose weight this year thus will use gym a lot.
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Yeah. $0.29/day is good b/c it’s like “round down to zero” range or at least a small enough cost that I don’t view it as a real expense. $3/day, to me, almost feels like it emphasizes how much it costs. $90/month is sort of like “eh, certain life expenses cost money. Oh well”
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Gyms seem to rely on over subscribing their offerings. With a daily model I might a) feel jipped paying $3 on a skipped gym day and b) feel obligated to use the gym more often, increasing visits and making over subscriptions less feasible
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Yeah, one thought I had was that I don’t really think of food as a daily recurring cost but instead a cost I only think of each time I’m hungry. Hopefully that makes sense
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Yeah, good point. Similarly I might like to pay for gyms per visit or a mixture of a lower monthly fee + per visit model. Especially for times when I’m traveling/have a chaotic schedule.
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