Has your host ever overcharged you when you're a loyal customer?

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  • rowan
    Too lazy to set a custom title
    • Mar 2002
    • 17393

    #1

    Has your host ever overcharged you when you're a loyal customer?

    It's happened to me twice.

    At one host I discovered the pricing for the same spec server was $50 cheaper and according to web.archive.org had been for over year.

    At another host the price dropped by about $30 by the time I left, but the spec level had also increased.

    This seems to happen a lot, new customers get pulled in with great deals, then 2 or 3 years later realise that pricing has dropped and they're paying more than they should... is this the way to treat loyalty?

    Discuss.
  • closer
    Confirmed User
    • Sep 2005
    • 1707

    #2
    Same happened to me when I wanted to order an extra server at the same host I was with some years ago, suddenly I got 1TB of included bandwidth instead of the 250 GB of my "older" servers where I had to pay extra for the extra GB on traffic above 250GB.

    I just sent them an email and they corrected all servers to 1TB, but still...

    Comment

    • rowan
      Too lazy to set a custom title
      • Mar 2002
      • 17393

      #3
      BTW just in case my current hosts are wondering... this thread isn't anything to do with my current arrangements. It's someone else who discovered they were being overcharged to the tune of several thousand dollars per year. Their hosting company says that they are aware that many customers are on old pricing but they do not proactively seek out those customers to advise them of their newer/better pricing. Sounds like bread and butter to me.

      Comment

      • Karupted Charles
        Confirmed User
        • Jul 2001
        • 1662

        #4
        Originally posted by rowan
        BTW just in case my current hosts are wondering... this thread isn't anything to do with my current arrangements. It's someone else who discovered they were being overcharged to the tune of several thousand dollars per year. Their hosting company says that they are aware that many customers are on old pricing but they do not proactively seek out those customers to advise them of their newer/better pricing. Sounds like bread and butter to me.
        Honestly do you expect the host to notify you of things like this. Every company should evaluate its hosting needs on a 6 month to yearly basis. Explore your options look at promotions and new technology. It is never in a hosts best intrest to move you off old hardware or onto better pricing. Its in your best intrest though to know if you can do better.
        TPF 2010 "They are eating our sausages!"

        Comment

        • edgeprod
          Permanently Gone
          • Mar 2004
          • 10019

          #5
          Try having a host who is charging you for data going from server-to-server because they have you routed externally instead of internally.

          Won't call anyone out, but that was a funny one to catch .. and it taught me to log in to even managed boxes from time to time and poke around.

          Comment

          • raymor
            Confirmed User
            • Oct 2002
            • 3745

            #6
            I would absolutely expect that to be the case. I wouldn't call it "overcharging". "Overcharging"
            would be if they charged you more than you had agreed to pay. The hosts themselves sign
            a three year or sometimes a one year contract on space, power, bandwidth, etc. Hardware
            gets cheaper over time, as does bandwidth generally, so yes a customer who signs up a
            year or two later will pay less for a 1Ghz server than you paid when it was the hot new CPU.

            That's the nature of a technology business and a major part of costs for some companies.
            If they purchase ten servers today with 3 GHz processors and 2 TB drives, by the time they
            sell the last one the value of it will have dropped in half because the 5 Ghz processors and
            4 TB drives will have just come out. This effect costs the hosting company a lot more than it does you.
            They are still making payments on that $10,000 optical router they leased two years ago,
            which now sells for $5,000.

            In fact, we have a service that we price so low that we don't even make any money on you
            when you are a new customer. We pretty much give it away for the first year. However, if we keep you a happy customer and you stay for five years, during that time our costs will drop
            and we'll earn our money starting the second year or so.

            That said, I see no problem with talking to the host every two years or so and renegotiating.
            Loyalty counts for something. What counts for even more, in the eyes of the web host, is that
            the brand new $5,000 server you signed up is now an older machine worth $3,000, so they
            can afford to keep you on it for a slightly lower price.
            For historical display only. This information is not current:
            support@bettercgi.com ICQ 7208627
            Strongbox - The next generation in site security
            Throttlebox - The next generation in bandwidth control
            Clonebox - Backup and disaster recovery on steroids

            Comment

            • raymor
              Confirmed User
              • Oct 2002
              • 3745

              #7
              Originally posted by Karupted Charles
              It is never in a hosts best intrest to move you off old hardware or onto better pricing. Its in your best intrest though to know if you can do better.
              It's in your best interest to change hardware if and only if your current hardware doesn't handle
              the load well. If you have a reliable server that is working well, "don't fix it if it aint broke" is a
              good thing to keep in mind. "Upgrades" can and do go wrong, more often than anyone would
              like, and even when they go right there is a cost to it.
              For historical display only. This information is not current:
              support@bettercgi.com ICQ 7208627
              Strongbox - The next generation in site security
              Throttlebox - The next generation in bandwidth control
              Clonebox - Backup and disaster recovery on steroids

              Comment

              • Aric
                Confirmed User
                • Sep 2002
                • 1209

                #8
                I've been with The Planet for about 8 years (upgrading to newer servers every couple of years) and hit them up a few months ago about this very same issue. I'm a long time customer, and I'd like the same deals new customers are getting blah blah blah...

                They initiated an accounting audit and within a couple days they cut my hosting bill by over a half.

                Sometimes you just gotta ask
                Awesome cloud hosting by DigitalOcean

                Comment

                • ottopottomouse
                  She is ugly, bad luck.
                  • Jan 2010
                  • 13177

                  #9
                  New customers get special introductory deals on lots of things with the second year being a higher price that a lot of people pay without ever checking. Try getting a quote as a new customer next time your car insurance renewal comes up if you want to feel like someone has just been putting their hand straight in your wallet.
                  ↑ see post ↑
                  13101

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