Hi,

When I launch my business I plan to offer the following special monthly rates up until 31st July when the special offer will end:


20MB 2GB
normal$14.95 offer$9.95

50MB 5GB
normal$19.95 offer$14.95

100MB 7.5GB
normal$24.95 offer$18.95

200MB 10GB
normal$29.95 offer$22.95

350MB 15GB
normal$39.95 offer$29.95

500MB 20GB
normal$49.95 offer$37.95



My reason for this is to get as many customers as possible in the first few months so that word of mouth will spread quickly. My question is should I honour these monthly prices for the entire duration of the clients' hosting account or limit it to one year or a specified period of time before the price returns to normal?

Thanks.

I would do it for "the entire duration of the clients' hosting account."

Definitely honor the prices for the life of the account.

Remember, customer retention is equally, if not more important than customer acquisition.

Since we started we increased prices 3 times :)
In our policy we state that a customer will get the initial price the rest of his life. We also state that is that's not possible (i.e. traffic cost go up big time), we will inform the customer and he then get the account one more half year for the old price. In the meantime he can look for another host, or decide to stay with us and in a half year start paying the new price. We also state we fully expect such an increase never to happen. We have never had to increase any customer prices yet.

This is a good way to protect your business. You will not be bound by contracts you can't live up to if the market changes.

This policy has worked out great with our customers. We very regularly get questions about it from prospect and most of the time they order.

Also be aware that the week that you stop your special prices sales will drop tremendously. That is because most people don't dicide to order the first time they visit. So when a prospect comes back, he sees prices changed, and he will not buy for sure. After a week sales go back to their normal level, unless your new prices are too high.

Warm regards,

Robert Heessels
alphamega = www.alphamegahosting.com

It is always best to try to keep the prices the same for the entire time the client is with you. Unfortunately it is not always possible. I think Robje summed it up great! Sounds like a great policy. :)