Applebees offers subscription service - have we reached peak fiat? \ stacker news ~econ

Applebees offers subscription service - have we reached peak fiat?

6644 sats \ 29 comments \ @endothermicdev 25 Jan econ

I've noticed the subscription trend has been on a tear lately. Whether it's for software you've already purchased, features for a car you've already bought, or even just going to the movie theater. They get ever more ridiculous and I find it rather fascinating.

I can only assume subscription services are such a popular offering because the revenue generated by a single sale may not be seen as particularly valuable. A predictable cash flow on the other hand, is incredibly valuable as it's the basis for the valuation of a company. As equities start to replace many of the functions of money, it follows that the incentives of the executives would flow down to the affect the customer - and there are the subscriptions. (By the way, have you noticed you can send stock shares via cashapp rather than, you know, cash?) This increasing value of equities as money means that predictable cash flow schemes for the business (automatically inflation adjusted at renewal!) becomes more valuable than actually making a sale today, so what's better than selling a premium feature once? Having a recurring subscription charge on the books.

Is this subscription trend another result of a deteriorating monetary system, or is it just the latest craze to hit corporate America? How much further can it go?

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1088 sats \ 5 replies \ @k00b 25 Jan

I think you're onto something. This trend is weird.

I'd love to read a data supported pro/cons for both consumers and producers. I sense consumers are taking a net financial loss given the (dated) stats I've seen about gym memberships. It often makes sense for businesses to lose money on new customers (CAC) when they know they'll recoup it over the customer's lifetime on average (LTV). But, maybe all consumers are giving up is future choice (eg when I go out, I go to applebees for dinner vs somewhere else on average).

It's also possible that subscriptions have always been desirable to both parties but were difficult to implement until recently.

670 sats \ 4 replies \ @Undisciplined 25 Jan

I was thinking about the recent conversation about gift cards. Part of why they work is the company gets paid in advance, so it's basically a zero interest loan from the customer. Then as a bonus, as with gym memberships, the customer usually doesn't use it all.

What's in it for the consumer is harder to pin down, but it's probably a (misguided) belief that they will come out ahead by using it regularly.

519 sats \ 3 replies \ @k00b 25 Jan

I bet it depends on the product/service somewhat too. If a product is nearly identical to a competitor's offering and the customer would otherwise switch between them frictionlessly and frequently (eg Door Dash vs Uber Eats), I can imagine a company offering a subscription with real benefits. Otherwise, it seems like a company only benefits by making me spend money I wouldn't otherwise.

558 sats \ 2 replies \ @Undisciplined 26 Jan

it seems like a company only benefits by making me spend money I wouldn't otherwise

This is gift cards, though, and consumers love them for some reason. In every respect (unless I'm missing something), it's better to just have more cash than a gift card.

519 sats \ 1 reply \ @k00b 26 Jan

True. I’ve never understood it, but the only thing that makes sense is they’re using it like a savings account, like preallocating consumption to limit their consumption type. Layaway confuses me the same way but the motivation is similar I think.

536 sats \ 0 replies \ @Undisciplined 26 Jan

That's where my mind was going as well, but a lot of gift cards are for luxuries, like fancy coffee. Maybe that's because the gifter wants them to treat themselves, though.

359 sats \ 2 replies \ @OriginalSize 25 Jan

I suspect subscriptions play into an identity-obsessed culture. You are who you subscribe to?

10 sats \ 0 replies \ @_stacktoshi 26 Jan

It's also the all-you-can-eat culture. Who doesn't love a bargain?

(I have a ton of subscriptions, but hardly ever go to a buffet or get the sushi version)

0 sats \ 0 replies \ @zuspotirko 26 Jan

Agreed with that. Almost all food brands don't only sell their wood - they're selling a lifestyle identity and an image with it

106 sats \ 0 replies \ @_stacktoshi 26 Jan

This term "peak fiat" is funny, because ya know paper is a renewable resource, and it's really easy to tack zeros on to the end of a number in a database somewhere for someone really important.

But I suppose everyone just means "peak number of people infected by the fiat mind virus". When enough retirees and their children run out of purchasing power, and their pension or social security won't be able to cover the difference, that's definitely curtains for fiat, and it doesn't look like a peak in monetary terms; the value of all those colorful pieces of paper and zero-heavy ledger entries just nose-dives off the cliff to zilch.

85 sats \ 6 replies \ @kr 25 Jan

i wonder what the antidote to a subscription is…

what is the thing that might make companies go “you know what, i don’t actually want automatic, repeat payments from my customers on a regular monthly schedule”

530 sats \ 3 replies \ @OriginalSize 25 Jan

Either systemic gaming by customers to where it's unprofitable, that or total boycott. Still wonder what an Applebees subscription gets you. Maybe I'd pay if they'd refuse to let me enter the building.

52 sats \ 2 replies \ @kr 25 Jan

how might one game a subscription?

like continually disputing charges with your credit card provider every month?

and what would lead to a total boycott?

181 sats \ 1 reply \ @OriginalSize 26 Jan

Maybe someone creates a reminder app which causes a large number of people to use it in a particularly unprofitable way.

Boycott might be rumors of widespread refusal to honor.

I don't know much about the program but nothing's perfect. That being said they should've thought of all these things. I enjoy adversarial thinking or else I'd probably not spend much time on this. Do you actually want to stop subscription culture?

0 sats \ 0 replies \ @kr 26 Jan

good points. i’m not necessarily trying to stop subscriptions, just trying to understand what makes the business model work and where the business model is susceptible to breaking

181 sats \ 1 reply \ @zuspotirko 26 Jan

what is the thing that might make companies go “you know what, i don’t actually want automatic, repeat payments from my customers on a regular monthly schedule”

A competitor making more money without subscriptions. That's what's needed to kill this trend.

5 sats \ 0 replies \ @kr 26 Jan

well i guess i could see one of two things happening to achieve that…

a further push towards real-time subscriptions, where you’re billed by the day/minute/second/usage for better revenue predictability
a return to paying full price for products upfront (which would be helpful in an era of high interest rates)

53 sats \ 0 replies \ @2d 26 Jan

I had no idea Applebees was doing that, wild times.

Agree with a lot that’s already been said here. An interesting tangent I’ve noticed is the rise of personal finance apps that market heavily on “discovering” and ending recurring subscriptions - leads me to think a lot of people sign up for this stuff, forget, and don’t even know they’re paying for it a few months down the road

52 sats \ 1 reply \ @elvismercury 25 Jan

Talk about burying the lede.

1010 sats \ 0 replies \ @endothermicdev OP 25 Jan

My apologies sir! https://www.cbsnews.com/news/applebees-date-night-pass-subscription/

280 sats \ 0 replies \ @lunanto 26 Jan

Subscription services are what bring revenue sustainability to most companies in the digital era so they can't help but use it as a revenue model

42 sats \ 0 replies \ @anon 26 Jan

How about a car subscription like a lease but as a subscription service!?

42 sats \ 0 replies \ @TheBTCManual 26 Jan

Lol the other day I read that people are paying their rent in using klarna installments like your rent is already an installment wtf? Peak fiat continues to keep peaking

42 sats \ 0 replies \ @DcaSignals 26 Jan

For a gym it makes perfect sense because you go 5 times a week. But for Applebees?

42 sats \ 0 replies \ @faithandcredit 26 Jan

There is no such thing as peak fiat :) It will come back again and again and again

42 sats \ 1 reply \ @Nuttall 26 Jan

The subscription is front running inflation. You've gained the funds before you've purchased the things you need to make a fresh product. Instead of getting hammered by consumers flush with easy money and then trying to get more raw materials to meet the new demand.

10 sats \ 0 replies \ @endothermicdev OP 26 Jan

Good point. I suppose gift cards have a bit of this aspect too - the funds are worth more when the card is purchased than when it's redeemed.

42 sats \ 0 replies \ @KLT 26 Jan

I’m so tired of these got damn subscriptions. I recently paid off my car and I kid you not, I got 5 letters from the car company thanking me for being a customer and asking me if I ever need anything, don’t hesitate to call! Thank goodness I had a 0% car note and was able to short the dollar for the last 5 years and just stack sats.

Done with subscriptions. Excuse my rant!

42 sats \ 0 replies \ @Nuttall 26 Jan

Subscription is rent seeking trust in a trustless society. What could go wrong?

But if you customers are important maybe a subscription is a better value because the service will always be good to the patron.