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Angie's List, Inc. Message Board

  • simple_pleasures_miami simple_pleasures_miami Dec 7, 2012 1:07 PM Flag

    The Funny thing about Angie's Discounts for Subscription

    Angie's list regularly offers 40% subscription renewals. Renewal Discounts are not unheard of, especially in situations where the Vendor ( The Publication for Example) is concerned about the customer's valuation of the product. For example Center For Science in the Public Interest, CSPI offers generous discounts on renewal. CPSI however is not a publicly held company ballyhooing about their paid memberships increasing. CPSI by comparison does not have to make a profit and reward shareholders with the benefits of its business model. Thats interesting. Now lets get to the funny part.
    Some of Angi's list 40 percent discount offers have a further offer of 20 %. I assume the 20 % is off the total after the 40 percent is deducted. The further 20% offer is contingent on the customer paying with paypal only. Now the question should arise: why is Angie giving an extra 20 percent off if you pay with Paypal? And does it not look a little funny for a company that wants to convince the world of the value of its offereing, to be routinely offering discounts of 40 percent and 20 percent.
    Lets go back to the why of the Paypal Discount. Could it be that Angie's list does not allow its commissioned reps to accept payment by Paypal, and therefore is able to be sure it won't have to pay a commission on Paypal paid sales? Or could Angie's list be so enamored of payment by Paypal because it may be a lot harder for a consumer to obtain a refund if payment was by Paypal? Or does Angie's bondholder or accountant give special consideration to the revenue stream coming thru Paypal?
    Or could it be that Angie is so concerned about its Cash Flow and Revenue Stream going forward that it has already arranged for payments to go thru a factor, and the factor likes the money to go to a Paypal account assigned to him. Just wondering. Angie's list inspires such wondering. :) Now I am not suggesting that Angie needs a factor now, as they have cash on the books. But wouldn't it be a really sweet deal for the factor to enjoy some revenue now, because later the factor's job would not likely be a lot of fun. :) ?

 
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