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Your response to him indicates that you think the customer actually cares about what it costs to run a business. They don't. Expecting them to do so is kind of naïve. A customer doesn't care what you pay to produce content, what you pay for processing, what you pay for hosting, whether or not you can pay your rent... they just don't. A customer cares about what they have to pay and what they get in return, that's about it.
I enjoyed his comments about the nonrecurring model, how he thought that was an attractive model and something he is interested in. I have seen this from many members myself so it does appeal to some people. Nothing wrong with offering different join models if it gets people to sign up.
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