Originally Posted by
dkc715
... As a numbers guy, it isn't hard to see why he feels that way. He looks at the world in static manner, assuming little change in customer behavior...Static financial models don't always work well, even with fortress hubs!!
I would venture to say that they never work well, since the marketplace, by definition, is a dynamic arena.
The other issue, which of course is not quantifiable the way up-front static analysis is, is that all the perks of elite status also act as incentives. Remove the perks and, sure, you remove the cost. But you also remove the incentives and thus the impetus to keep purchasing the product.