August 14, 2010

The Price Is Right

Seth Godin has a wonderful post on pricing your products or services to reward your customers and partners for their loyalty.

Two personal stories, both of which relate to services whose prices have gone down radically over the past decade:

I used to use for my domain registrations. A few years ago I switched to godaddy, despite their awful commercials, because they had the best price. After using godaddy, I found I also like their web site and domain management tools. So I decided to switch the domains that were still at to godaddy. This required actually calling In an effort to keep my business, they offered to match godaddy's price. I told them that if they had offered that price in the first place I wouldn't have switched, but now it was too late.

For more than ten years, I have used for my domain hosting. They have a great service, a useful online knowledgebase, and when I do need support they are responsive. However, as more competitors have entered the field, they have remained the high-priced supplier. I am willing to pay something more to retain their excellent service and avoid the hassle of moving all my files and learning new procedures at another supplier. About five years ago, I was considering a switch, but they lowered their prices enough to keep me. But now, I am paying $35 a month for services I could get from highly rated companies for well under $10. So I wrote to intermedia on their customer service web form, giving them an opportunity to keep my business. No response. This may not be my highest priority, but I will be switching.

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