This episode might reference ProfitWell and ProfitWell Recur. Some information may be out of date.
Overview of Time
In the realm of pricing advice, Time Magazine has always stood as a significant player. Having been a mainstay on American shelves since its inception, Time is not just about physical copies anymore. A century after it started, they are now offering digital subscriptions to customers worldwide. As an industry legend worth over four and a half billion dollars, they are making strides but still committing a crucial error with their pricing strategy, an error which most of us are probably making as well.
Background of Time
Time Magazine was established in 1923 by Briton Hadden and Henry Luce, making it the first weekly news magazine in the United States. The publication has helped shape the world with articles surrounding important issues in health, economics, politics, and science. With its iconic red logo and Person of the Year feature, Time Magazine became one of the most recognizable brands in the world.
Facing declining print magazine sales and a shift in media consumption habits, Time adapted to the digital era by making a considerable pivot towards online and digital subscriptions. With video content, multimedia storytelling, and interactive features, they managed to attract and retain digital subscribers. However, despite their massive progress in transitioning to the digital era, the question remains – is their pricing strategy outdated?
Reaction to Time's Pricing Page
Digging into Time’s pricing page, three plans stand out: the monthly plan, the annual plan, and the biannual plan. But, here's where the complication arises. Time's price anchors and plan lengths are too confusing for the potential subscriber. They struggle with accurately communicating what each plan entails and how much it will cost in the long run.
Despite this, one thing that Time does extremely well is their gift subscriptions and student rate subscriptions. Catering to various types of readers all around the world, they offer special packages for those who love the product and want to gift it to their loved ones or students looking for quality content at a reduced price.
However, Time is significantly cheaper than it ought to be. When someone opts in and comes to the landing page, seeing a price as low as $3.99 per month could be confusing. This could lead to potential customers questioning the quality of the product because it's too cheap.
Takeaways
Utilize Gifting and Student Discounts
- When you have a fragmented market, providing gift options and special rates for particular segments of your audience can prove effective. Time’s student rate and gift options allow customers to easily bring more readers into the fold. This strategy could be beneficial for businesses looking to expand their customer base.
Don't Be Too Cheap
- Time’s pricing strategy is too cheap. This not only causes them to miss out on potential revenue, but it can also cause customers to question the quality of the product. By increasing their prices, they can overcome poor anchoring and plan length issues that they are currently experiencing.
Utilize Internationalization
- Time does an excellent job at localization internationalization. They offer currency localization and demand base localization for their readers all around the globe. This strategy can help to meet the differing willingness to pay in different regions, allowing companies to maximize their profits based on regional preferences.
Recap
Time, a legendary magazine, offers a fascinating case study in the media industry's transition from print to digital. Despite having established a substantial digital presence, the company’s pricing strategy could use some refinement. The confusing presentation of pricing options and the incredibly low price point may detract potential customers. However, Time’s implementation of gifting options, student discounts, and effective localization practices provide valuable lessons for other businesses transitioning to digital platforms.
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