Lisa Schmeiser on Muck Rack

Lisa Schmeiser

Alameda, CA
Freelance Journalist — Freelance

Columnist, @observer; editor @ITProToday, podcaster @TheIncomparable, writer @Previouslytv, writer @ So What, Who Cares? (tinyletter.com/lschmeiser)

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@lschmeiser — 2,727 followers, 43,087 tweets

This move to raise monthly Prime prices by $2/mo seems like a move that appeals to investors but won’t help make inroads w/working-class consumers. Imagine what WMT can do in response for this customer group.
Amazon Prime already has crazy-good penetration in higher income brackets (82% of all household making $112K or more have it —  https://www.recode.net/2017/6/8/15759354/amazon-prime-low-income-discount-piper-jaffray-demographics ). The growth opportunity is in lower income brackets. Upping the monthly price won’t help growth.
This Amazon Prime change affects 30% of its customers, but those include the customers least likely to swing $99 at a go. Now, let’s talk strategy for a moment ...
Which brings up my point: If you do not already have lots of capital, you have to pay to use what little capital you do have. The less money you have, the harder it is to get cut a break.
Customers who don’t have at least $1,500 in their checking account or get at least $250/mo in direct deposits will be charged for the privilege of having an acct. Unbanking can be pricey (see this for the ways people avoid banks, all w/“convenience fees”:  https://www.npr.org/2017/01/10/509126878/what-is-driving-the-unbanking-of-america )
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