Many years ago I created a blog about how easy it was for a modern Internet Company to increase cash flow (make more money)...
Ø A company had subscriptions from 20 Million customers.
Ø If it raised their customer’s Monthly Subscription Cost by $1.
Ø They would have just increased their income by $20 Million a Month or $240 Million a Year.
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What follows is not an indictment of Amazon for their recent increase in the Annual Subscription Cost for Amazon Prime. It is just Wow! Interesting!
Ø As of March 2017 it is estimated that there are 80 Million Amazon Prime Subscribers.
Ø This new increase in the subscription cost is $20 per Year.
Ø That calculates out to an increased Cash Flow of $1.6 Billion or 1 Thousand 6 Hundred Million Dollars per Year.
Now you understand why they pay you no never mind if you write them a letter and say you refuse to pay the increase and you are cancelling your subscription. It’s because they still has 79,999,999 Subscribers to fall back on.
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A Little Further Analysis...
Ø A few years ago Amazon did another $20 per Year increase and the Folks Back Home (that’s us) did not blink.
Ø Amazon Prime Subscriptions have been growing dramatically over the years.
Ø In 2014 there were 41 Million Subscribers and March 2017 (as stated above) there are 80 Million.
Ø The average Prime member spends about $1,300 Each Year on Amazon, nearly double the $700 Each Year spent by non-Prime members.
Actually, Fella dropped his subscription when they did the last $20 Increase. Later I picked up the subscription again and Amazon proved it did not hold a grudge for my disloyalty because they immediately started taking my money again.
Do you think they knew I would be back? ... I do.
Would I kid u?
Smartfella
Lagniappe: Kitty Kallen sang Little Things Mean A Lot in 1954. They still do. AT&T (and some other carriers) has an Admin Charge on the bottom of their bill listed near Federal and State Taxes (which makes some of us think the Administrative Fee is also a Government-Mandated Charge but it is simply an extra charge by AT&T). The fee was just raised $.76 a Month. This Small Increase will generate about $970 a Year to AT&T.
