Amazon Prime increasing for 2015

Hang out, sip some ice tea, and shoot the breeze with TR regulars.

Moderators: emkubed, Captain Ned

Amazon Prime increasing for 2015

Postposted on Thu Mar 13, 2014 7:30 am

I thought I'd pass along word of the cost increase seeing as it was a recent front-page topic. I received an email stating my renewal next year will be at $99 due to the increased fuel usage and the popularity of Free second day shipping. It might actually take me 2 months now to have it pay for itself :lol:. Actual text below:

Amazon Prime Email wrote:We are writing to provide you advance notice that the price of your Prime membership will be increasing. The annual rate will be $99 when your membership renews on February 25, 2015.

Even as fuel and transportation costs have increased, the price of Prime has remained the same for nine years. Since 2005, the number of items eligible for unlimited free Two-Day Shipping has grown from one million to over 20 million. We also added unlimited access to over 40,000 movies and TV episodes with Prime Instant Video and a selection of over 500,000 books to borrow from the Kindle Owners' Lending Library.


I still think it's easily worth it. For those of you that didn't know, they allow a few other accounts to be tacked onto your own to give out the free second day, prime, etc on. So you essentially could go in on the Prime membership with some friends for $25 a piece. The actual text says "invite up to 4 other family members living in the same household" - not that I have abused it but I haven't lived with my parents in some time, but they get great use out of it. Do note that prime benefits as far as streaming etc do NOT extend to those you share it with.

It's still $79 at the time of this posting however, so if you were considering it now is better than later!
Corsair 600T | ASUS P8P67 PRO | Intel 2500k @ 4.4Ghz | EVGA 560 TI | G.SKILL Ripjaws Series 8GB | Corsair HX650 650W
steelcity_ballin
Gerbilus Supremus
Silver subscriber
 
 
Posts: 11907
Joined: Mon May 26, 2003 5:55 am
Location: Pittsburgh PA

Re: Amazon Prime increasing for 2015

Postposted on Thu Mar 13, 2014 8:44 am

I got this email as well. I, as well, still think it's more than worth it.
i7 860 - GA-P55-USB3 - 8GiB - HD7850 - SSD - 3.64TB HDD - Xonar D1 - U2410 - Win7 Pro x64.
DancinJack
Minister of Gerbil Affairs
 
Posts: 2021
Joined: Sat Nov 25, 2006 3:21 pm
Location: Austin, TX

Re: Amazon Prime increasing for 2015

Postposted on Thu Mar 13, 2014 8:46 am

Given how much of my consumption of goods flows through Amazon and the video watching the wife & kids do it'd be cheap at twice the price.
It is one of the blessings of old friends that you can afford to be stupid with them. Ralph Waldo Emerson.
Captain Ned
Global Moderator
Gold subscriber
 
 
Posts: 20100
Joined: Wed Jan 16, 2002 7:00 pm
Location: Vermont, USA

Re: Amazon Prime increasing for 2015

Postposted on Thu Mar 13, 2014 8:48 am

FWIW, my membership renews this year in October. It did say the price hike would apply to that renewal if I chose to renew it then. So, I'm not sure when the date is that this is going into effect.

edit: also, we should talk to bruno about all the extra space in signatures now. It seems to only be happening with the new subscribers stuff.
i7 860 - GA-P55-USB3 - 8GiB - HD7850 - SSD - 3.64TB HDD - Xonar D1 - U2410 - Win7 Pro x64.
DancinJack
Minister of Gerbil Affairs
 
Posts: 2021
Joined: Sat Nov 25, 2006 3:21 pm
Location: Austin, TX

Re: Amazon Prime increasing for 2015

Postposted on Thu Mar 13, 2014 9:05 am

DancinJack wrote: also, we should talk to bruno about all the extra space in signatures now. It seems to only be happening with the new subscribers stuff.

It's not extra space in signatures, it's just the subscriber graphic on the left makes the minimum post size bigger, compare the first post from Steelcity with Ned's post.
notfred
Grand Gerbil Poohbah
 
Posts: 3711
Joined: Tue Aug 10, 2004 10:10 am
Location: Ottawa, Canada

Re: Amazon Prime increasing for 2015

Postposted on Thu Mar 13, 2014 9:06 am

notfred wrote:
DancinJack wrote: also, we should talk to bruno about all the extra space in signatures now. It seems to only be happening with the new subscribers stuff.

It's not extra space in signatures, it's just the subscriber graphic on the left makes the minimum post size bigger, compare the first post from Steelcity with Ned's post.


I noticed that, and was wondering. Thanks.

Lemme adjust by pixels!
i7 860 - GA-P55-USB3 - 8GiB - HD7850 - SSD - 3.64TB HDD - Xonar D1 - U2410 - Win7 Pro x64.
DancinJack
Minister of Gerbil Affairs
 
Posts: 2021
Joined: Sat Nov 25, 2006 3:21 pm
Location: Austin, TX

Re: Amazon Prime increasing for 2015

Postposted on Thu Mar 13, 2014 9:25 am

Still a damn good deal and I'll keep my membership up.

edit: I guess it'll depend on what you use it for. We have prime and a subscription to size 5 diapers and wipes, which saves a *lot* of money vs regular store prices, plus free shipping on books and heat mats and UV lights for my reptiles. But if you primarily use it for streaming, I can see this making you switch to Netflix
Last edited by paulWTAMU on Thu Mar 13, 2014 9:55 am, edited 1 time in total.
Ugly people have sex all the time. We wouldn't have 6 and a half billion humans if you had to be beautiful to get laid.
paulWTAMU
Gerbil Elder
 
Posts: 5517
Joined: Wed Nov 24, 2004 5:14 am
Location: Amarillo, Texas

Re: Amazon Prime increasing for 2015

Postposted on Thu Mar 13, 2014 9:40 am

I'm pretty sure the shipping alone has paid for it, and I like to stream video every so often, and my wife borrows stuff from the Kindle lending library constantly. So overall at $99 it's still a great deal.
I do not understand what I do. For what I want to do, I do not do. But what I hate, I do.
derFunkenstein
Gerbil God
Gold subscriber
 
 
Posts: 21253
Joined: Fri Feb 21, 2003 9:13 pm
Location: WHAT?

Re: Amazon Prime increasing for 2015

Postposted on Fri Mar 14, 2014 5:21 am

Amazon has problems. They haven't been profitable since, well, ever. This small increase won't help them. Frankly I don't think Prime is worth it because their regular free shipping is, well, free.
Molon labe.
Vrock
Gerbil God
 
Posts: 20551
Joined: Tue Jan 15, 2002 7:00 pm
Location: The Land of the Looney Lolcats

Re: Amazon Prime increasing for 2015

Postposted on Fri Mar 14, 2014 6:14 am

Vrock wrote:Amazon has problems. They haven't been profitable since, well, ever. This small increase won't help them. Frankly I don't think Prime is worth it because their regular free shipping is, well, free.



They have to be turning a profit somewhere or else their stock wouldn't be at 371 per share. Heck even their P/E ratio is at 635. (although it could be overpriced for the high P/E but scanning the financials I dont think so.)
(\_/)
(O.o)
(''')(''')
Wounded Warrior Project
Watch out for evil Terra-Tron; He Does not like you!
tanker27
Darth Gerbil
 
Posts: 7135
Joined: Tue Feb 26, 2002 7:00 pm
Location: Georgia

Re: Amazon Prime increasing for 2015

Postposted on Fri Mar 14, 2014 6:26 am

2013 they made like 275 Million or something, I think. Not much, but still a profit.
i7 860 - GA-P55-USB3 - 8GiB - HD7850 - SSD - 3.64TB HDD - Xonar D1 - U2410 - Win7 Pro x64.
DancinJack
Minister of Gerbil Affairs
 
Posts: 2021
Joined: Sat Nov 25, 2006 3:21 pm
Location: Austin, TX

Re: Amazon Prime increasing for 2015

Postposted on Fri Mar 14, 2014 10:57 am

We'll be keeping our membership as well.

I use it to watch old tv shows (remember when people actually bought DVD seasons), and of course for the free shipping.

It's great value as far as I'm concerned.
Hawkwing74
His Holy Gerbilness
 
Posts: 12821
Joined: Wed Aug 20, 2003 5:51 pm
Location: Streamwood, IL

Re: Amazon Prime increasing for 2015

Postposted on Fri Mar 14, 2014 11:51 am

I think Amazon's share price reflects their goal of increasing sales at the expense of margins. They are the opposite end from Apple in that way. If you remember the sprint commercials from the 80s and 90s... volume.

And, there was a great SNL parody of those commercials about a company that makes change when you need change for the bus, toll booth, or public phone.
-Eric

Please don't quote me on this.
ericfulmer
Gerbil XP
Gold subscriber
 
 
Posts: 347
Joined: Fri Oct 25, 2002 7:43 pm
Location: Los Angeles

Re: Amazon Prime increasing for 2015

Postposted on Fri Mar 14, 2014 3:45 pm

tanker27 wrote:
Vrock wrote:Amazon has problems. They haven't been profitable since, well, ever. This small increase won't help them. Frankly I don't think Prime is worth it because their regular free shipping is, well, free.



They have to be turning a profit somewhere or else their stock wouldn't be at 371 per share. Heck even their P/E ratio is at 635. (although it could be overpriced for the high P/E but scanning the financials I dont think so.)
Right, because investors have never buoyed a company on faith before!:D

Seriously though, there are two schools of thought on Amazon. One says that they could be profitable tomorrow if they wanted to, but instead they re-invest their revenue on growth and innovation, with the intent of clawing their way to the top of the heap. Once they are there, they "flip" the profitability switch, and bam! Profit.

The other viewpoint is that their business model is fundamentally unprofitable and will remain so until they fold. Many in the investor community are coming around to this line of thinking. Fact is, Amazon has only turned a profit for a handful of quarters since they've been in business. And they've been in business for a while now. If they could be profitable, they would be. Now, I don't think they'll fold overnight, but their stock is way out of line with reality. If a traditional retailer continually reported earning like that, they'd be slaughtered. Why is Amazon different? The company admits that they lose money on Prime memberships and that shipping in general hurts them. This price increase won't change that.
Molon labe.
Vrock
Gerbil God
 
Posts: 20551
Joined: Tue Jan 15, 2002 7:00 pm
Location: The Land of the Looney Lolcats

Re: Amazon Prime increasing for 2015

Postposted on Fri Mar 14, 2014 3:52 pm

DancinJack wrote:2013 they made like 275 Million or something, I think. Not much, but still a profit.
Sorry, I was referencing the all important 4th quarter, where they tanked, and profitability in general since they started up. They had $274 million net income on $74.2 billion for 2013. Anemic at best.
Molon labe.
Vrock
Gerbil God
 
Posts: 20551
Joined: Tue Jan 15, 2002 7:00 pm
Location: The Land of the Looney Lolcats

Re: Amazon Prime increasing for 2015

Postposted on Mon Mar 17, 2014 6:17 am

Vrock wrote:Seriously though, there are two schools of thought on Amazon. One says that they could be profitable tomorrow if they wanted to, but instead they re-invest their revenue on growth and innovation, with the intent of clawing their way to the top of the heap. Once they are there, they "flip" the profitability switch, and bam! Profit.


As an investor and a consumer I am ok with this. Any new company should reinvest in itself for growth. Established businesses should reinvest for innovation. This is how it should be done.


Vrock wrote:The other viewpoint is that their business model is fundamentally unprofitable and will remain so until they fold. Many in the investor community are coming around to this line of thinking. Fact is, Amazon has only turned a profit for a handful of quarters since they've been in business. And they've been in business for a while now. If they could be profitable, they would be. Now, I don't think they'll fold overnight, but their stock is way out of line with reality. If a traditional retailer continually reported earning like that, they'd be slaughtered. Why is Amazon different? The company admits that they lose money on Prime memberships and that shipping in general hurts them. This price increase won't change that.


I wouldnt be surprised if Amazon has some super secret (well not secret just not well known or publicized) arm of its business elsewhere like investments/funding. It's not unheard of for a business to look for other revenue sources outside of its 'normal' business.

NInja Edit: I just read that Amazon is planning its own fleet of delivery trucks to control its delivery and transportation costs. link
(\_/)
(O.o)
(''')(''')
Wounded Warrior Project
Watch out for evil Terra-Tron; He Does not like you!
tanker27
Darth Gerbil
 
Posts: 7135
Joined: Tue Feb 26, 2002 7:00 pm
Location: Georgia


Return to The Back Porch

Who is online

Users browsing this forum: Bing [Bot], Exabot [Bot] and 16 guests