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Re: Re: Re: [newtech-1] Subscription Dilemma

From: Anthony Z.
Sent on: Wednesday, June 12, 2013, 11:53 AM
We can't pro-rate a subscription with a software as a service. Almost no one does this. They reset the subscription date if a card fails to the date the card is updated. Pro-rating everyone would be worse for a company for refunds and clarity of services. You pay $15 a month for X in an online subscription model. Sure, the electric company pro-rates for days you don't live in the apt, but online services generally don't pro-rate anything. You want to have fixed pricing so your subs know what they are getting and for how much on a consistent basis.


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On Wed, Jun 12, 2013 at 9:54 AM, David Todrin <[address removed]> wrote:
Hey Tony,

One final note -- completely agree that acctng should not drive the process.  It just seemed like you didn't have flexibility, so just highlighting an add'l cost of daily...

FYI, the model I was thinking of is not at all a "batch" concept (especially for discrete transactions like your Apple example), but it is what all phone/cable co's use -- they prorate the stub beginning period to put all clients on a preferred "close date", and for sure, they never give away any free days, and they do this for scale...  They also re-bill if the payment fails.

Good luck -- hopefully you can prevail on a process revamp sooner than later!

Best, David
 
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