Hosting: should existing customers be offered price reductions?
 

Say you're paying $149/mo for a server. Some time after setup, the host reduces the price on their page for an equivalent server & transfer to $99/mo. Should the existing customer enjoy that price drop also?

That depends . . . if the prices go up, should you pay the new price?

Discounts are used in every industry to attract new customers.

In this industry the lesson learned is to never ever sign a contract for hosting. There is no benefit to the customer with the way BW prices are dropping.

exactly....

I know my cable company advertises lower prices to new customers . . . free months even.

I expect the only way that is going to help me is if I cancel my service, then sign up again.

Interesting question. You'd think old customers would pay less once their box is 2 or 3 years old, but that's not the way things work.

I look at it this way. Your price stays the same, because you're paying for rackspace, electricity, free hardware replacement, and tech support.

Just FWIW, this isn't entirely hypothetical... :winkwink: It wasn't a discount, it was the standard price. I worked out that I was being charged +$50 for over 13 months.

if the price goes down and they dont adjust my bill to new plan i simply move.

If the price increases and they adjust my account to increase bill i move aswell

If you were not in a contract then yes you should get that price. But just like cell phone stuff you have to stay on top of it. Most service companies will not alert you when prices drop. Some will and those are the companies that I will be loyal to for good. But it is rare.

yeah you should pay less.