Everything is a Subscription Because the Line Must Keep Going Up

Posted by Matt Birchler
— 1 min read

Andrew J. Hawkins: The future of cars is a subscription nightmare

“For automakers to achieve their revenue aspirations by charging consumers extra for features and services, they have work to do,” Cox’s Michelle Krebs said.

I don't have the answer here, but I think there's something fundamentally wrong with how companies no longer feel they are able to sell products at a sustainable price.

Back when I worked at Target, we were obsessed with "accessory attachment rate" in our Electronics department. Basically, Target didn't give a shit about you selling an expensive item like a game console or a TV, all they cared about where whether you were able to attach some accessories to the purchase because that's where we actually made a profit. On the other end of the spectrum, the TV that customer just bought has brand deals, ad tracking built in, and tons of subscriptions it would love you to sign up for as well. All of this because the TV, the product the customer actually wanted, was sold too cheaply by the manufacturer and at razor-thin margins by Target, meaning the only way it would work out for either party was to get the customer to buy more.

See also buying a $1,000+ phone, only to get it home and get bombarded with ads for how you could subscribe to get more!