While subscriptions and unlimited plans are now the norm, the concept of the “All-You-Can-Eat Price” is making a comeback as an attractive strategy for brands looking to boost appeal and foster customer loyalty. But is it a silver bullet — or a financial time bomb ?
The rise of unlimited pricing
The “All-You-Can-Eat” (AYCE) model was originally associated with buffet dining, where consumers pay a fixed price for unlimited consumption. Today, the approach extends far beyond restaurants. It’s gaining traction in SaaS (Software as a Service), streaming, fitness centers, and even financial services. The premise is simple : a one-time payment (monthly, annually, or lifetime) grants unlimited access to a suite of services or products.
Netflix, Spotify, Adobe Creative Cloud, and Amazon Prime are prime examples. By offering unlimited access at a flat rate, these companies capitalize on content addiction and habitual usage to offset costs and generate massive profits.
Why are companies adopting this model ?
- Increased customer loyalty : engagement is one of the biggest challenges for brands. By removing the friction of repeated purchasing decisions, companies build usage habits that drive retention.
- Predictable revenue streams : subscriptions and unlimited plans provide steady cash flow and improve financial forecasting—a key advantage for investors and stakeholders.
- Psychological effect : customers perceive high value when paying a flat fee for unlimited access, reducing the perception of spending and encouraging more active usage.
- Simplified offerings : no more complex calculations or variable pricing. A single price point lowers the barrier to entry and makes the offer easier for customers to understand.
Limits of the “All-You-Can-Eat” model
While the concept is appealing, it’s not without its risks. Several companies have stumbled by underestimating the appetite of their power users.
- The “Chinese buffet” effect : heavy users can overconsume to the point of eroding profitability. That’s what happened to MoviePass, which offered unlimited movie tickets for a low monthly fee—and eventually went bankrupt.
- Variable cost management : in resource-intensive services like cloud computing or data storage, heavy usage can quickly turn into a financial drain.
- Diluted perceived value : when a service becomes unlimited, it may lose its sense of exclusivity or prestige—especially problematic for premium brands.
Who can succeed with an AYCE model?
The success of an All-You-Can-Eat pricing strategy depends heavily on industry and cost structure. Here are key factors that improve its viability :
- Low marginal costs : digital services, where the cost of adding an extra user is nearly zero, are ideal candidates.
- Volume leverage : the more subscribers, the greater the cost-sharing effect, improving profitability.
- High user engagement : wen users subscribe but don’t fully use the service —like many gym members— the model becomes especially profitable.
The future of the All-You-Can-Eat model
As competition heats up in the subscription economy, the AYCE model is likely to evolve. Many companies are already exploring hybrid formulas that combine unlimited access with premium upgrades —think Spotify’s HiFi tier or Netflix’s ad-free options.
Another emerging trend is dynamic pricing, where subscription fees adjust based on actual usage or perceived added value. This approach could address some of the model’s pitfalls while retaining the appeal of unlimited access.
The All-You-Can-Eat Price remains a powerful tool to attract and retain users —but it’s not one-size-fits-all. Companies that strike the right balance between profitability and customer experience will come out ahead. Those that don’t risk being eaten alive by their own success. Handle with care.
