Rebate program effective immediately
Jan. 3, 2022
We're announcing a transformational pricing model. Since starting Favisbook, we've been operating in a niche sector, with the service we provide benefiting only a small proportion of the population. In general, we've found that particular groups are able to take advantage of our service. These are namely resident and non resident aliens studying or working in the United States, and American post secondary students seeking visas to study abroad. Although these groups represent a relatively small proportion of American society, they still represent a large enough section of the marketplace such that scaling Favisbook would allow us to significantly lower the cost of our service.
One of the biggest struggles that young businesses need to overcome in order to survive is the high cost associated with offering their product or service. Quite often, the cost to offer the product or service is much higher for a new business because they simply don't have enough resources to scale their operations and allow the price to drop via economies of scale. The problem is analogous to the escape velocity required for a rocket to reach orbit. Reaching orbit is expensive, and the rocket must expel a significant amount of fuel in order to reach the velocity required to overcome Earth's gravity. However, once in orbit, and once gravity has been overcome, a relatively minute volume of fuel must be expelled in order to affect the rocket's trajectory. The pricing model that we are implementing serves to offset the initial high costs of our service, and give Favisbook the opportunity to scale the business and approach a prime market value.
The main problem that has prevented potential customers from using our service always been the high cost. Based on the amount of appointments that we've been able to confirm, we haven't been able to drop our prices to a level that is accessible to the entire market segment. Generally speaking, we've been offering a service that is accessible to a niche subsection of a niche subsection of the market. Our goal is to drop the cost of our service to a level that would make it accessible to everybody who needs it. Based on the current size of our business and global factors such as the contemporary pandemic, there's no way for us to lower our cost at this time. However looking forward one or two years, we see that dropping our price to one half or two thirds of the current price is well within the set of possibilities.
Reaching our goal requires implementing a new pricing model. Given current challenges, we cannot lower our price, so we are implementing a rebate program. Effective immediately, all orders placed through Favisbook will be included in the program and associated with a future market price. As the cost of our service falls, customers who placed orders at earlier, premium prices, will receive partial refunds, effectively dropping the cost they incurred to match the new market cost of our service. By initiating this program, it is our hope that we can encourage more people to use our service and help drive the cost down to a reasonable level.