Ring(ing) the Changes

[Right Away]

Our hobby continues to come in for much debate over the rising costs of products.

However… as far as percentage increases go, the email received today from Ring (video doorbell) informing of a hike in their subscription from £3.49/month to £4.99/month was an eye opener. There must be something dreadfully amiss with their current business model for their need to impose such a huge, 30% rise. Some will say another £1.50/month will probably hurt few, but there is principle at play here.

 

We can live in hope that such a drastic pricing change won’t find itself encroaching on the model railway market to the same degree.

 

[uax6]

What I don't understand  (as a 46 year old) is why we need so many things connect to the interweb these days? Yes the technology is brilliant, but is it really required? Do I really need to see who is at my front door when I'm not there?

 

But it appears that the future is to own nothing and lease (which is what this is) everything...

 

But a 30% rise is still small fry, both SWMBO and I have recently had our car insurance renewals through. Mine was up 70%, and the Wifes 100%+, neither of us have had any claims for years, and the values of the vehicles haven't gone up, so whats that all about?

 

Andy G

[4630]

1 hour ago, Right Away said:

 

However… as far as percentage increases go, the email received today from Ring (video doorbell) informing of a hike in their subscription from £3.49/month to £4.99/month was an eye opener. There must be something dreadfully amiss with their current business model for their need to impose such a huge, 30% rise.

 

 

It's probably as well to bear in mind that Ring is owned by Amazon, an organisation not generally known for its philanthropic approach to business.  Their recent change to the pricing of Amazon Prime Video being another case in point.

 

In a nutshell, in a capitalist world, they impose a 30%* rise, because they can.

 

I would imagine that their finance people have assumed that the revenue generated by a 30%* increase, with an immediate and direct impact on the bottom line, is still greater than the loss of revenue from subscribers who, metaphorically speaking, put two fingers up and cancel.

 

* I note from the BBC website that they're quoting a 43% increase.

 

Edited February 9 by 4630
to correct a rogue spell check intervention

[30801]

Wonder if they're trying to drive camera sales? We have a 'Plus' subscription that covers any number of devices at one address and so far this hasn't gone up.

At three cameras it's cheaper to get Plus than a sub per camera. I think when I started it was five cameras.

We've got eight of the things now.

[Classsix T]

I'm not as au fait with railway modelling these days but does the OP mean the cost of the existing products has gone up...or it (justifiably imo) costs more to purchase the ultra high fidelity products being brought to market?

 

There's a significant difference.

 

There's a vocal mob decrying the fact computer games are regularly going to be sold for an RRP of £70...well boo-hoo.

I've still got the stickers on game boxes from twenty years ago with £45 pricing. Those games look pretty awful these days and their production budgets were a fraction of what it costs to generate games today.

 

I'll concur though that a hike in...for arguments sake... a mortgage, with no significant increase in the value of the property, or, petrol costs more because a bunch of people have decided to drill less oil are rather apparent indicators that rampant capitalism does indeed suck ass.

 

C6T.

[Mike Buckner]

On 09/02/2024 at 14:47, Right Away said:

the email received today from Ring (video doorbell) informing of a hike in their subscription from £3.49/month to £4.99/month was an eye opener. There must be something dreadfully amiss with their current business model for their need to impose such a huge, 30% rise.

 

 

 

On 09/02/2024 at 15:48, 4630 said:

In a nutshell, in a capitalist world, they impose a 30%* rise, because they can.

 

I would imagine that their finance people have assumed that the revenue generated by a 30%* increase, with an immediate and direct impact on the bottom line, is still greater than the loss of revenue from subscribers who, metaphorically speaking, put two fingers up and cancel.

 

* I note from the BBC website that they're quoting a 43% increase.

 

 

 

An increase of 43% from £3.49 is £4.99

A decrease of 30% from £4.99 is £3.49

 

 

[30801]

28 minutes ago, Classsix T said:

I'm not as au fait with railway modelling these days but does the OP mean the cost of the existing products has gone up...or it (justifiably imo) costs more to purchase the ultra high fidelity products being brought to market?

 

I once bought a Hornby A4 from Hattons for £60 in a sale. Train packs with an A4 & three coaches were £120.

The RRP for the _same_ A4 is currently over £200 so there has certainly been an increase in price over the years for the same products.

[Reorte]

On 09/02/2024 at 15:04, uax6 said:

What I don't understand  (as a 46 year old) is why we need so many things connect to the interweb these days? Yes the technology is brilliant, but is it really required? Do I really need to see who is at my front door when I'm not there?

DItto. The only thing I've got connected to the internet are a couple of computers (if you don't count the router). Haven't found any need or desire for anything else.

[Gareth Collier]

I do a lot of walking and subscribe to OS Maps. Last year it was £19.99 and my renewal is £28.99. That's 45%. Apparently their costs have gone up but they're doing something wrong if they've gone up by that much.

[cctransuk]

Just now, Gareth Collier said:

I do a lot of walking and subscribe to OS Maps. Last year it was £19.99 and my renewal is £28.99. That's 45%. Apparently their costs have gone up but they're doing something wrong if they've gone up by that much.

 

That's nothing - have you tried renewing your car insurance this year?

 

Near 100% increase, anyone?

 

CJI.

[Reorte]

2 hours ago, cctransuk said:

 

That's nothing - have you tried renewing your car insurance this year?

 

Near 100% increase, anyone?

Last summer was the last time for me, but I wasn't sure how much of it was due to price hikes and how much due to changing cars.

[cctransuk]

Just now, Reorte said:

Last summer was the last time for me, but I wasn't sure how much of it was due to price hikes and how much due to changing cars.

 

Same car, same coverage, no claims.

 

£450 last year, £813 this year - alright, 70+% increase.

 

CJI.

[Gareth Collier]

2 hours ago, cctransuk said:

 

That's nothing - have you tried renewing your car insurance this year?

 

Near 100% increase, anyone?

 

Yep, I know car insurance is rocketing, we're a 3 car household, but the cost of spares, repairs, replacements and labour have all gone up dramatically so it's sort of understandable (ours went up approx 85% last Nov) but OS Maps is a bit of software that remains pretty much unchanged year on year so no idea how 45% can be justified.

[Reorte]

15 hours ago, Gareth Collier said:

Yep, I know car insurance is rocketing, we're a 3 car household, but the cost of spares, repairs, replacements and labour have all gone up dramatically so it's sort of understandable (ours went up approx 85% last Nov) but OS Maps is a bit of software that remains pretty much unchanged year on year so no idea how 45% can be justified.

The OS has staff and does things other than reissue the same software, so it'll all be part of that - the same reason everything's shot up. Although anything above inflation (even allowing for that being high) seems excessive.