Court+ pricing model (Bill Splitting)

Edited
  • The Court+ pricing model is a unique model used exclusively by PodPlay’s system to resolve the Club issue of the free-rider problem

  • The free-rider problem is a challenge that every Club faces when offering Memberships that discount the rate of a court for Customers who are Members versus Non-members

    • As an example:

      • A Non-member books a private court for $60 and invites their friends (other Non-members) to the Reservation

        • The court cost is split evenly among the participants, each paying $15

      • A Member books a private court for $44 (a Membership benefit of booking courts for 27% less) and invites their friends (Non-members) to the Reservation

        • The court cost is split evenly among the participants, each paying $11

    • When a Member books a court instead of a Non-member, the Non-members who join the Member’s Reservation are free-riders, taking advantage of the Member’s perks without needing the pay the Club for a Membership

    • This friction point of the free-rider problem is resolved with PodPlay’s Court+ pricing model

  • Some Clubs attempt to resolve the free-rider problem by charging a Guest Fee, a Non-member Fee, or a Day Pass for Non-members who walk into the Club, and this is where the Court+ pricing model comes in

  • The Court+ pricing model allows a Club to offer a Membership with valuable perks, like discounted private court Reservations, while also automatically charging a Non-member Fee ($n) to the Non-members who come into the Club

    • In the same example:

      • A Non-member books a private court for $60 and invites their friends (other Non-members) to the Reservation

        • The court cost is split evenly among the participants, each paying $15

      • A Member books a private court for $44 and invites their friends (Non-members) to the Reservation

        • The court cost is split evenly among the participants, and the Non-members pay their fee, resulting in the Member paying $11 and the Non-members paying $11 + $n

    • And the Club has the flexibility to pick any amount they wish as the value for $n

  • The Court+ pricing model comes in two strategies in case of charge failures or cancellations:

    • Inviter covers: Reservation Holder covers for the invitee who had a charge failure, and the other invitees pay their share

    • Equally: the balance of the court is shared equally amongst the Reservation Holder and remaining invitees

  • For both strategies, for any Non-members participating in the Reservation that has a hold put on their card for their share of the Reservation + $n, only the Non-member will pay their respective $n, unless the Reservation Holder has elected to send an invitation pay for their friend’s spot

  • To learn more about the Court+ pricing model in action, read these articles: