It’s funny after reading a book on a topic, you then seem to focus on that aspect on everything else you see in the world. Recently, for me, its been the free concept.
Free by Chris Anderson gives an awesome explanation of economics and marketing in 19th and 20th century and then about how companies can make money from things that are free.
One of the cool ideas he mentions in passing is a free gym chain in Denmark. Imagine if a gym charged you for not showing up? Otherwise was free as long as you went every day. Punishes you for not being healthy, and basically rewards by not paying at all! Sounds like something from realm of behavioural economics (well guess what? it is!). Chris Anderson explains the psychology behind it:
When you go every week, you feel great about yourself and the gym. But eventually you’ll get busy and miss a week, you’ll pay, but you’ll blame yourself alone. Unlike the usual situation where you pay for a gym you’re not going to, your instinct is not to cancel your membership; instead it’s to redouble your commitment.
What else can you do? You charge for the strength training classes, since the kind of people who go everyday love being healthy, so probably be willing to pay to make stronger muscles! Put a juice bar in there to also monetize on the freemium you used to market to these gym loving fanatics.
If they fail to make the 2 times a week schedule (got busy) you ding them 60 dollars for that month. So in reality if say you missed just 2-3 times a year, you would still be paying less than a full year membership! Why? Because most gyms today actually make money on you NOT using it. The pricing depends on the particular costs of setting up the gym, etc, but this is the gist of this radical idea.