Thoughts? I was sold at first but then I ran into this:
" What’s the likelihood of the different discount amounts?
Each monthly discount has a 70% chance of being $20, 15% of $30, 10% of $40, 4% of $50 and 1% of $100."
Not sure if its really worth it. Would love to hear what you all think.
I don’t know what to say.
But I would have joined if I could pay with my drop credits. Now I won’t…
So the expected discount for each month is
.7 * 20+.15 * 30+.1 * 40+.04 * 50+.01 * 100 = 25.5
If you are buying at least two keycaps set in a year, it’s probably worth it. There is certainly luck involved. The more risk loving you are, the more attractive this is
expected value math. Pog. Love that you did it for all of us.
I’m really struggling to see the value proposition here. It seems so contrived as well, making it difficult to assess whether I would could even break even on this.
I would have preferred a punch card system. Buy 5 sets, get one free!
I joined. I buy enough from Drop that it’s worth it.
You’ll have to valuate perks like exclusive products and pre-release access for yourself, but there is some value there.
Also, because they now keep sets in stock, you can technically (if you have the patience) buy your kit over, e.g., 3 months and save a minimum $60 on a single keyset.
Okay, I’m giving it a try too. They’ve got a discount code to knock $20 off the first year so I suppose that makes it safer to see how this goes.
Why does Drop feel compelled to make a new incentive? Why not just up the rewards points for a keycap purchase? That’s all they need to do. It’s already in the system, man.
This is a popular marketing technique made famous by Costco and later Starbucks. By charging for a “membership”, a company can make a profit without selling anything.
Whatever loss they do take on discounts, is regenerated by other members who didn’t buy enough sets to benefit from the program.
They’re probably using the membership revenue to prepay for sets so they can have them in-stock or deliverable with tight turnarounds.
I learned that Costco actually and intentionally makes almost all their profit from the memberships. That’s why they’re able to offer the goods at the very low prices they do. Goods are sold at or around cost in most cases.
I use the Costco Citi card and use my rewards to pay my membership. Just gotta be smart with money. I have never paid any interest on any cc, ever. My rewards will be close to $450 this year yeeeeeeeeeee.
What’s the cost for Costco? And why don’t every American get there shit from them?
Depends, it’s just over $100 (more if you buy commercially), but if you use their Citi card as @chrono said, the membership basically pays for itself.
Edit: we pay $100 I guess for the Executive Membership, but a basic membership is $60.
Having the discount not be consistent every month is stupid imo like why they gotta add some gambling shit to it lmao watch the good discounts be the months with shitty keycaps
Yeah, so I got the $20 discount. womp womp
Yup. And Starbucks is actually a bank. Weird.
That doesn’t surprise me. I figured they wouldn’t do the $60 or similar higher discounts for the first month of membership.
Oh merde, I’m part of this problem.
I agree that simple is best. But, just because a company benefits from a program doesn’t make it inherently bad or dishonest. @chono said it best: gotta be smart.
I think most of us know what we like and don’t like in keycaps, and if you know there’s at least 3 kits you’re keen on buying in the next 12 months, the intro year is worth it. Then cancel it. As a side note, you also get and can use Drop reward points along with the discount, so it’s not like you’re losing out on the normal reward system.