Go Long wrote:
I mean, if I spend $50 bucks at Dick's Sporting Goods, they always give me $10 off. If I buy a pair of running shoes online, I always get free shipping. It's kind of good customer relations 101 to reward your best customers. Apparently the BAA feels differently. It's a shame. I never thought of the BAA as an organization that does the cash grab.
What you don't get is that Dick's does not have a quantity constraint. They are better off if you spend $40 for $50 worth of their goods than $0 for nothing. The BAA is at the constraint. They don't have to satisfy their customers. If they were to purely maximize profits, which of course they don't, they'd simply raise the entry fee itself.