Greetings!

A client has an initial 50MB diskspace and 1GB transfer plan. He exceeded his bandwidth a little over 1GB. (1130.647497MB to be exact).

The next plan is 100MB diskspace/2GB bandwidth. If he were to upgrade how do we charge him?

We are thinking of this:

1. He pays the difference between the higher plan and the lower plan.
2. He also pays for his excess bandwidth for the previous month.
3. And then we reset his renewal date to a new date (or should we?)

Say he started his hosting August 11, 2002. (with an excess in bandwidth).
Then he wants to upgrade this September 2, 2002.
What will be the renewal date for his new plan? Note, the client pays for a year. Should it be August 11, 2003 or September 2, 2003. And are we doing the right thing charging him for the excess bandwidth for the previous month even though he is upgrading?

Kindly advise.

Thanks.

:)

My way of handling it would be to:

1) calculate a pro-rata credit for the unused hosting on the 1 GIG plan up to then end of the last month (before they exceeded their transfer allowance).

2) start the customer on the new plan, for 12 months, starting the month where they exceeded the bandwidth allownce.

3) Charge them the cost of the 2 GIG plan less a credit for the unused portion of the 1 GIG plan you calculated in step 1).

Why in the world would you charge him?

Upgrade his plan let him pay the pro rata difference and leave his renewal date the same.

Gezzz I don't think I have ever charged a customer an overage unless it was at least a Gig over and then only if they exceeded their transfer for more than two months. And I always in those circumstances offer to let them upgrade for the dif in price and forget the overage.

Under promise and over deliver and you will have happy long term customers get picky and you will have them leaving as fast as they come.

Yeh. Like Monte said. The little they went over would not be worth charging them for it if they are upgrading anyways.
Nothing wrong with having happy customers.

freakysid,

Hmmm... let me see if I get the point. Say 1GB plan is $60/year. And the 2GB plan is $90/year.

The client started only in August. So basing from your suggestion, here is my understanding of it:

$60/12 = $5/month. Since the client has only used up one month of hosting his credit with us is $55.

Now this September he will upgrade to 2GB plan. So what you are saying is we start the client with a new plan for 12 months starting August. Then, what he will pay is only $90-$55 =$35.
Am I right?

Monte and Dennis (SoftWareRevue), thanks for the tip. We're not planning to charge the client either for the mere small excess in bandwidth and besides this is just his first month of hosting.

Thanks. Hope to hear from you guys.

:)