Back

Havish Gupta

Figuring Out • 8m

How Memberships are Indirectly Profitable! If you look at any membership in any industry, you might think the company is losing money because of the perks they offer! But that's not true. Let’s take airline memberships as an example. Imagine you have two similar flight options, say Indigo for ₹4000 and Vistara for ₹4500. Without any perks, you’d most likely choose Indigo. But since Vistara offers perks like membership points and complimentary food, you might prefer Vistara. For you, it’s just an extra ₹500, but for the airline, not offering those perks could make them losse ₹4500 in revenue. Now, for an airline operating a 70 ton plane, carrying one more person doesn’t significantly increase costs. So, while Vistara might make a smaller profit (or even a loss) on a single ticket due to the perks, they still earn more on a per-plane basis. This same concept in some ways (not every time) applies to memberships across all sectors and also help increase customer loyalty and revenue.

8 replies2 likes
Replies (8)

More like this

Recommendations from Medial

Image Description
Image Description

Chamarti Sreekar

Passionate about Pos... • 7m

Zomato Gold & Swiggy One six months membership are available at Rs 30. Will you buy those memberships?? 👀

9 replies16 likes
3

Stoxii

MARKET KA NAYA RYTHA... • 18d

✈️ India’s Aviation Market – FY 2024 Snapshot The domestic skies are clearly dominated by IndiGo, holding a commanding 61.6% market share by passengers carried. Following behind: 🔹 Air India – 9.7% 🔹 Vistara – 9.4% 🔹 Air India Express (AIX Connec

See More
0 replies6 likes
1
Image Description
Image Description

Jaswanth Jegan

Founder-Hexpertify.c... • 11m

“Plane Ticket in cost of a Train Ticket” Disruption Dairies #3 Deccan Airlines was founded by Captain G.R. Gopinath in 2003 as India’s first low cost Airline with a plan of offering plane ticket in a train ticket cost. To keep the operating costs

See More
25 replies29 likes
5

Keshav Sachdeva

Hey I am on Medial • 3m

The fitness industry is booming, yet access to quality gyms remains a barrier for many. Traditional gym memberships often tie you to a single location, limiting your workout options and flexibility. Introducing: The Multi-Gym Membership Revolution

See More
0 replies2 likes
1
Image Description
Image Description

Bhavin Padia

Currently learning M... • 9m

If any of you have public library in your town then it’s worth taking membership there. I just took membership. ₹24 annual charge. Think of it this way: I can now ready as many books as I want in just ₹24. And if I make book review videos on YouT

See More
4 replies13 likes
1
Image Description
Image Description

PRATHAM

Experimenting On lea... • 1y

📢 I didn't think that this intellectual guy had this increase in losses ( 85% from last year) with not as increase in revenue ( 69% from previous year ). This guy had met alot of founders and still. There might be reasons right? Most probable reas

See More
11 replies10 likes

Nandha Reddy

Cyber Security | Blo... • 1m

Making money in a business is not just by selling your product only... (Yes). we have 27 other ways to do so. Sometimes.... You have to stop thinking about just selling your product, real money comes from the strategy. In service based companies yo

See More
0 replies5 likes
Image Description
Image Description

Ahsan

Co-founder, Co-CTO ... • 2d

🚀 Admeasy is Hiring: Backend Developer Interns (Paid) We’re looking for passionate Backend Developers to join our team as interns! 🛠 Skills Required: • Node.js • Express.js • MongoDB • JWT & bcrypt (Authentication) • Multer (File Uploads) 💰 Sti

See More
9 replies8 likes
Image Description
Image Description

Jayant Mundhra

 • 

Dexter Capital Advisors • 1y

UAE's Etihad & China’s 2nd biggest airline announce a global first 🙌🙌 The two biggies have decided to shun competition and rather join hands to serve a massive market. What exactly has happened? The two airlines just had a baby. Let’s learn! ..

See More
2 replies9 likes
1

Ashish Srivastava

Director at Momo's F... • 5m

I believe that instead of always trying something entirely new, it’s better to approach what you already have in a new way. The experience you gained from your last moment or event might not always work with a new event or scenario. But if you appr

See More
0 replies2 likes

Download the medial app to read full posts, comements and news.