Why do so few services offer annual payments?
I'm not a fan of monthly billing and always like to see a service offer annual payments; a positive example would be Playstation Plus.
Now I'm wondering why this is possible for so few services. Why can't I just pay for the entire year with Netflix, Prime, etc.? From a business perspective, this gives me the advantage of long-term customer loyalty. Are there any disadvantages?
For most Abo models you can choose between mtl, all 3 Moante and 1 year. The disadvantage is that you have to pay very large sums every time and you can’t quit if you have a 3 month or 1 year subscription.
You can only quit as you pay. So at 3 montl. You can only cancel payment every 3 months, etc.
It can’t be everyone. Who has to look hard on the money can stop
1. Don’t raise equal sums 1x a year
Two. You can decide monthly if you can or will.
3. It can also help with saving. Many people don’t use any subscription and can say so, in February I pay only Sky and in March only Netflix” This allows you to switch felxibel between the providers.
This has some disadvantages for suppliers. For annual payments, customers require a discount. With price increases, you can’t give further to the customer.
This will also be difficult with the monthly termination.
I do not demand a discount and that the monthly turnability should be clear to everyone. I am only concerned that I find annual payments more convenient and do not understand why the option is not offered everywhere.
less profit… because you are probably one of the few who prefer to pay annually. To make this a little more attractive, you always have to give a discount, so for example 12 months have come to pay 10 months or something…