Change in the way weekly discounts work and change in Fat Llama Fees

To start with, I’d like to explain why the fees are changing and how our product is improving. From Friday 10th July 2020, our lender fees are going to increase from 15% to 25%, with a £5 minimum fee on all rentals. We will also be changing the way our weekly discounting formula works so you will generate more income.

Over the last three years, we have been consistently improving our product and verification flow; adding more and more measures to make you, your items and the overall marketplace a safer place. As I hope you have noticed, these features have made drastic improvements to the Fat Llama experience. However, have slowly been eating into our fixed cost base and overall margin. We knew at some point, we would have to make a fee change and the day has come.

Here are just some of the services we have added to improve our verification over the last 3 years, all at extra cost:

  • Stripe’s Radar Product (Payment fraud detection)
  • Ekata (Identity verification)
  • Persona (Identity verification)
  • Amazon Web Services Facial Recognition Service
  • OCR Extraction
  • Device FingerPrinting
  • Additional Insurance from Hiscox, Allianz and Axa

I can assure you we are doing everything we can to keep our fees down as low as possible. Our intention here is not financial gain however in order for the business to continue to evolve, we need to make these changes. We are looking to build a safe global marketplace that brings positivity to people’s lives. Both giving them access to things that they don’t own and also earn from things they aren’t using.

After significant feedback, we are finally changing the way our weekly and monthly discount function works. To date, our discounting has always been a “curve” between daily and weekly. Now we have adopted the industry standard “cliff”.

 

🤢 Example of current discounting:

Daily Price: £10
Weekly price: £50

2 days would be £17.74

 

🎁  Example of the new discounting:

Daily Price: £10
Weekly price: £50

2 days would be £20

 

I speak on behalf of the entire Fat LLama team when I say thank you for being such a valuable platform participant.

Chaz


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