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 RockyBBPremium
join:2005-01-31
Steamboat Springs, CO | Maybe not so nutty... Any dial up customer remaining on AOL really wants to be there. The Bosses must have decided (or researched) that these are really sticky customers. Here's an example of what they might be thinking...
Say they have 1,000,000 customers.
1,000,000 customers @ $10 a month = $10,000,000 of revenue
assume they will lose 15% of customers due to price hike.
850,000 customers are left at the higher price.
850,000 customers @ $12 a month = $10,200,000 of revenue.
Losing 15% of customers allows them to cut costs. So higher revenue and lower costs makes AOL more profitable.
A price hike will essentially shake the loose nuts off the branches, making the company's future more stable. | | |
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| Wow, are you sure you don't work for a cable company?  | |
 JeffreyWilpon please sell the MetsPremium
join:2002-12-24
Long Island
kudos:3
 ·Vonage
 ·Optimum Online
| said by Pictor Guy:Wow, are you sure you don't work for a cable company? »ryanspoon.com/blog/2008/04/14/di···-get-it/
Click on "charge more". 
--
And so castles made of sand, slip into the sea, eventually.
"Honesty may be the best policy, but it's important to remember that apparently, by elimination, dishonesty is the second-best policy." - George Carlin
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