Tuesday, March 20, 2007

ditching the alibi

I used to always scan my card at the gym, even when no one was checking. You know, in case I ever needed an alibi. I'm not going to do that any more. Half the time, the employees are too lazy to check or the scanner is not working/not connected. This girl at work, who also belongs to Bally's, told me that renewal fees are higher for people who go regularly than for people who only go once in a while. Her dad went almost every day and she only went sporadically. His renewal fees were more than double hers. Econ majors--is this a type of price discrimination? I said it was probably because he had a better plan than she did (access to more locations, more days of the week). She said they had the same plan and when he called to complain, they lowered his fee.

I've heard Netflix does something kind of similar, but not by raising the price. If you go through DVDs like babies go through milk, they try to slow you down by having fewer DVDs available to you (short wait/long wait). I take my time with my rentals, so most titles are available to me immediately. I've only heard one example of this, so I don't know if this theory is true.

2 comments:

Anonymous said...

Netflix - absolutely true. Happened to me. Mum's husband was watching them like hot cakes and it all came to a stand still.

Anonymous said...

yes and netflix was sued for doing that. I can't recall if they settled or lost but they had to give people free rentals. If what your gym is doing is in fact true you might consider brining a lawsuit which may in turn cause your fees to go up.