How much would you be willing to pay for Amazon Prime?

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How much would you be willing to pay for Amazon Prime?
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With flagging profits, Amazon is looking at raising the price on a Prime membership. But would you be willing to pay this kind of increase?

Amazon announced it may up the cost of a Prime membership from $79 to $119, according to The Seattle Times. My suspicion is they’ll relent and go with $99, making people happy that the cost isn’t going north of $100.

Meanwhile, it looks like Amazon is transitioning to a modified Costco business model. Both companies are based in the Pacific Northwest; they both have an extreme customer focus; and they’re both trying to create instantaneous loyalty among a customer base to the point where people don’t even comparison shop at competitors anymore.

Costco won’t even let you in to look around if you’re not a member. While Amazon won’t go that far, they will continue separating their customer base into first class and second class status with more perks for members.

But mark this well: Even though Amazon may be selling merchandise without making much profit, their prices are often *not* the best. It’s up to you to do that shopping if money does matter.

If you want an easy way to see if a quoted price is a deal or not, try installing a browser plug-in like Invisible Hand that automatically pops up an alert while you’re shopping if a better price is available on another website.

Finally, Amazon is rolling out a payment platform for retailers using the Kindle, according to The Wall Street Journal.

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Clark Howard About the author:
Clark Howard is a consumer expert whose goal is to help you keep more of the money you make. His national radio show and website show you ways to put more money in your pocket, with advice you can trust. More about Clark
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