Hi there,

We are running the hosting business for quite a while now. Our process comparing to other hosts were very good and low, at least at the beginning. I see now many hosting business are offering very cheap plans....

My questions is: we are about to slash the prices by introducing slightly different plans as well (bandwidth, etc) - now, how about existing customers? How take care of them? How are you guys are going about that?

Thanks for your comments in advance.

Regards,

Tom Z.

Well if you are going to LOWER prices you might concider OR moving all your costumers and bill them less OR which is probably the easiest solution is to give them more bandwidth/month and space and keep billing them the same price.

We were facing that same dilemma a while back. We found it effective and more efficient to offer more (in the way of resources like space, bandwidth, email, databases, additional software, etc) for the existing prices.

It worked out well. That way existing clients do not have to deal with change and new customers wouldn't know of the change.

But what if you're offering a price freeze guarantee? If you lower their prices or give them more resources then when you want to raise your prices again you can't.

Even if you offered a price freeze, I don't think your clients would complain if you cut the prices. I think Tom (original poster) was referring to a perminant price change- correct me if I am wrong.