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Only by way of technicality

Posted By: Rod
Date: Saturday, 20 July 2013, at 11:51 p.m.

In Response To: That is incorrect (TarHeelFan)

Ok. If you say so.

So, when a $15 member goes to renew next year, how much will they have to pay?

Oh.... $35.

So, that person won't be paying more?

If you add more benefits and make the basic a real value at $1000 and the premium an even better value at $2,000, did you not raise rates.

Your argument is technically correct but you're not considering perception.

Let's look at another industry. Car manufacturers. Lets say some company has a 2012 basic model for $10,000 with no bells and whistles. 2013 they eliminate the $10,000 model, throw a lot into their cheapest model (leather seats, etc) and price it at $23,333.33. They didn't actually raise the cost of that 2012 model. But dealerships might have a hard time selling the new basic model.

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