Why monthly recharge plans are valid only for 28 days instead of 30/31 days?

So that we recharge 13 times a year instead of 12 - read below how👇👇

My data pack got expired and I was looking for recharge options. While deciding
that - I noticed all monthly packs are available only for 28 days, not 30 or 31
days

So, why are they doing this?

It's a full-fledged strategy to increase revenue. Let's understand it this way:

Approximate cost of a 28 days pack - Rs. 250/-
Let's assume there are 1000 subscribers

We'll do the calculation for a year (365 days)

If you get a full month pack (30/31 days) then you need to recharge 12 times a
year i.e., Rs. 250*12 = Rs. 3,000/-

For 1000 subscribers: Rs. 30,00,000/- (30 lacs)

If you get 28 days pack then, 365/28 = 13

You need to recharge 13 times a year i.e., Rs. 250*13 = Rs. 3,250/-

For 1000 subscribers: Rs. 32,50,000/- (32.5 lac)

Straight 2.5 lac additional revenue/1000 subscriber i.e., + 8 %

Unknowingly, we recharge for 13 months in a year:)

Thanks for reading, wishing you a very Happy New Year!

#analytics #telecom #pricingstrategy #productmanagement #product #growth
#revenuegrowth #revenue #startup #pricinganalysis #information



Posted by Amandeep Singh Chawla on LinkedIn
link: linkedin.com/in/iamandeepchawla