Didn't people predict the demise of Ebay when they upped prices (several times) and shifted their business model from individuals to businesses? Then demanding Paypal usage, etc. etc.
Same strategy as governments. Squeeze a little so the pain is tolerable, but they get used to it. Later you can squeeze a bit more. Process repeats until a VERY painful rebellion. In the meantime a few people get much richer, even when/if the business eventually fails. To repeat the process via investing, using a slightly different business base, and different human subjects.
Anyway, won't people be happy but grumbling far less when PB decides to reduce the presently announced fees? They are certainly going to milk the subject base for all it's worth, even if it does fail eventually. They may have already decided to close up shop rather than compete and have a planned exit strategy to maximize profits to the very end. And then have a big write off for a failed business. Yes, tax losses can allow you to keep money earned elsewhere. Will the people within the company be hurt? You betcha! with the investor care? Nope, all part of doing business and accumulating wealth at other's expense.
Isn't asking and exorbitant fee a classic seller's strategy? Ask for more than its worth, then "settle" for what would have been accepted in the first place?
I predict the business heads have this already figured out Even 10% of of paying customers has greater income potential than 100% of freeloading customers.
FYI, I never did sign up PB. Didn't like the very concept of giving away my efforts and property for free for other's monetary gain. Seemed too much like greed, even then. Feeding greed just promotes more insatiable greed, imo.
