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zmgsabsttoday at 11:33 AM1 replyview on HN

$1/day forever is around $9125 using the safe drawdown rate of 4% per year.

So if you’re a bakery and a customer offers $9000+ for a fresh roll every day forever, you should almost certainly take them up on that offer. A smart baker could probably get that number sub-$5000, but you’ll always come out okay around 25x the yearly cost (in this case, $365).

Similarly, if the amortized yearly cost of a customer is $12 (ie, $1 per month), then a $300 forever price is financially indistinguishable from a permanent subscription. (Actually, better: time value of money, they can’t cancel the annuity you buy, etc.)

So there always is a price where that is financially viable.


Replies

drdectoday at 7:37 PM

> the safe drawdown rate of 4% per year

IIRC this rate is based on some standard retirement length (like 30 years), not forever.