Mortgage Blog

Netflix's lesson

October 25th, 2011 3:33 PM by Eric Fang

This is on the headline that Netflix lost 800,000
subscribers after they increased the price of 60%.

I have a friend who setup the rentals for her
rental property based on the cash-flow. She told
me that I had to have this rental income, otherwise
the cash-flow is negative. She does not care
that much about the markets.

I used to work with an appraiser a few years ago.
Back then we can choose our own appraisers. And when
the busy is a little bit busy, he decided to increase
the fees bvy $30. Yes, this is not not much, but it's
about 10% increase back then. And his fate is very
similar to today's Netflix.

I don't object for higher fees. But we need a good reason
for it, like better service, better quality, etc.
We paid higher premium for Apple products. And I paid
higher monthly fees for my internet provider, becuase
it's worth every dime.

I don't what's the reason for Netflix?

Posted in:General
Posted by Eric Fang on October 25th, 2011 3:33 PM



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