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Friday, April 27, 2018

Amazon Prime price inflation

Which Amazon Prime price inflation was greater:
  • the change from $79 to $99 (from 2005 through 2014)?
  • or recent change from $99 to $119 (from 2014 through 2018)?

This is a question tens of millions are now being forced to ask themselves.  And while we conducted a poll on same, we saw a basic lack of conviction as to what the correct answer is, and what it would mean to you.


Additionally, we now had 9,000 technology managers immediately look at this poll, on LinkedIn alone.  Many Amazon executives included.  This is a huge degree of interest on how people think about this topic and represents nearly a quarter of our followers on just that platform.


To satisfy the explosive interest on this topic, we created our monthly video to explain a few foundational mathematical ideas.  Including how the price changes at Amazon have been few and far between. At the same time, the recent price changes have been significantly higher relative to BOTH general national inflation, as well Amazon-specific inflation trends for nearly a decade prior to 2014.  If we stayed with former trends you should only see a $10 price hike, not a $20 hike!  So, are you gullible?


For Amazon Prime members, you should consider heavily whether you are an enthusiastic user of this service.  Else the relative cost of this service will soon quickly outstrip the value you are extracting from it.  One day you pay $79 for a service, and then sometime in the future after another $20 pay hike, you pay $139 (nearly 2x for the same service).

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