News for hackers. Stuff that matters.
Re:US appeals court says Tinder Plus pricing is discriminatory by drewcon on Wednesday January 31, 2018 @10:12AM (#16274403)
You’re confusing cost plus pricing with value based pricing.

Answer this question, “How much is it worth to you the customer to be able to...” and that’s probably how they got to $20/month.

Re:US appeals court says Tinder Plus pricing is discriminatory by 013a on Wednesday January 31, 2018 @10:20AM (#16274483)
I really don't think its that simple. There's a pricing problem with SaaS products like Tinder which suggests that more people will pay if it is cheaper. And with Tinder Plus, they offer literally nothing different that would cost Tinder much more money; it just allows users to use the app more.

The problem with $20/mo is that its entering exploitation territory. Like a porn site subscription, it exploits chemical and physical addictions intrinsic to humans to derive revenue. You can say the same thing about, say, any addictive service (like Netflix) and you wouldn't be wrong. But at least Netflix prices at cost, not "value", and Tinder is literally playing with a biological drive and interpersonal relationships, not a simple dopamine addiction.

Re:US appeals court says Tinder Plus pricing is discriminatory by paulcole on Wednesday January 31, 2018 @10:23AM (#16274508)
>But at least Netflix prices at cost

This must explain their terrible earnings and stock performance over the past decade or so.

Re:US appeals court says Tinder Plus pricing is discriminatory by astura on Wednesday January 31, 2018 @10:34AM (#16274607)
What makes you think Netflix prices at cost?
Re:US appeals court says Tinder Plus pricing is discriminatory by 013a on Wednesday January 31, 2018 @11:03AM (#16274835)
They definitely price below cost right now, given their financial performance. But they're raising prices literally right now; they're working on averaging up the amount customers pay without shocking customers to better reflect the cost of their services.

In other words; a business fundamentally cannot price all of their customers below cost indefinitely, and Netflix is working in the right direction. On the other hand, you can price customers above cost if demand is there, and demand for Tinder is there because their business model relies on exploiting biological addictions in our brains.

Re:US appeals court says Tinder Plus pricing is discriminatory by a_cactus on Wednesday January 31, 2018 @10:23AM (#16274511)
Netflix does not price at cost.