Quote:
Originally Posted by teksonline
It's because they are mostly "resellers"
|
A lot of hosts that we compete against are simply resellers of other hosting companies and that would be why much of what they buy and sell at are more or less locked in. As I believe you already know, we're not resellers of anything. It's our cage, our servers, our network equipment, our direct network relationships, etc.
The other reason hosts don't often discount for established customers is quite obvious - discounts are a direct write down to their bottom line. Right or wrong, we can all agree that writing down established business is a direct decrease to bottom line profit and isn't easy for most businesses. I've always done write-downs or giving away more bandwidth a little at a time, consistently, and found that karma usually makes up for the loss in newfound additional sales.
Brad