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  1. #1

    Thumbs down Customers requesting downgrade

    What is the best way to convince a customer to not downgrade? Does anyone use a standard letter that works a large percent of the time?
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  2. #2
    Join Date
    Mar 2004
    Location
    England
    Posts
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    £10 fee.

    Andrew
    NetHosted - UK based hosting solutions.

  3. #3
    Join Date
    Oct 2001
    Location
    Ohio
    Posts
    8,535
    I've never felt the need to do so. If a customer feels the need to downgrade their plan, I let them.

  4. #4
    Join Date
    Apr 2004
    Location
    Bulgaria
    Posts
    159
    Originally posted by inogenius
    I've never felt the need to do so. If a customer feels the need to downgrade their plan, I let them.
    Same with us
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  5. #5
    Join Date
    Apr 2002
    Location
    Philadelphia
    Posts
    2,278
    Have you ever needed to downgrade something in life? Most likely yes... Does it mean the service is bad? Most likely no...

    Most clients downgrade for money reasons or because they just don't need as much anymore. If service was bad, they would look for a different host

  6. #6
    Join Date
    May 2002
    Location
    Raleigh, NC
    Posts
    714
    Why would you not let them downgrade? Give them what they want. Find out why they want to downgrade.

  7. #7
    Greetings:

    We've allowed customers to downgrade as well as upgrade over the past nine years.

    We've even had a case where we had a signed contract for hosting five high end Sun Microsystem servers for $32,000 per month (the servers were maxed out), and nine months into the 12-month contract the client asked for a downgrade.

    We moved them to four Linux, Intel-based severs and cut their hosting in half.

    We've also had cases where we approached customers who could fit on a lesser server or service; and recommended they downgrade.

    We've found over the years that a focus on the needs of the customer over the needs of money to build a loyal client base.

    They know you are putting their best interest at heart when you put their needs first over the dollar bill.

    Also, since we compete on value, when there is a downgrade in fees paid, there is a downgrade in value provided. But most business customers know that and accept that fact.

    Thank you.
    ---
    Peter M. Abraham
    LinkedIn Profile

  8. #8
    I think if they feel you won't let them downgrade their plans, they might consider downgrading you =)
    dotGig
    <:<: [Fruit eating linux administrator]

  9. #9
    Join Date
    Sep 2002
    Posts
    918
    If you impose a downgrade fee, your clients may very well find a new hosting company.

  10. #10
    I don't see what the problem is is with downgrading. Many (if not the majority) of shared hosting customers overestimated their server space and bandwidth needs. Making them guess and slamming them with fees reminds me of the cell phone industry.

  11. #11
    Join Date
    Nov 2001
    Location
    The South
    Posts
    5,408
    What's the difference in downgrading as having signed up for that plan to begin with? At least you got the bigger money out of them for a few months

    Better to downgrade as to cancel I suppose
    Gary Harris - the artist formerly known as Dixiesys
    resident grumpy redneck

  12. #12
    Join Date
    Dec 2001
    Location
    Above The Clouds
    Posts
    7,223
    Some people downgrade, some people upgrade - such is life.
    Laurence Flynn @ HostNEXUS.com
    Managed WordPress Hosting Solutions
    Focused on speed. Obsessed with security.

  13. #13
    Join Date
    Dec 2003
    Location
    metropolis
    Posts
    383
    I would much rather they downgrade rather then leave my company altogether...
    [[[[ ---CNM--- ]]]]

  14. #14
    Join Date
    Aug 2000
    Location
    Tacoma, Washington
    Posts
    9,576
    Originally posted by NexDog
    Some people downgrade, some people upgrade - such is life.
    Exactly. It would seem he's a little more interested in their money than their satisfaction.
    Former Webhost... now, just a guy.

  15. #15
    Customer's point of view: I will never agree to pay a fee to upgrade or downgrade an account. What effort does it involve for the host these days with all the control panels out there? If you're not interested in what fits my needs best, then you're not the host that fits my needs best.

  16. #16
    Join Date
    Jun 2001
    Location
    Denver, CO
    Posts
    3,302
    If customers want to downgrade, so be it. I only advise customers not to downgrade if I believe it will be detrimental to their service.
    Jay Sudowski // Handy Networks LLC // Co-Founder & CTO
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  17. #17
    When I first signed up with my home ADSL provider I went onto their 512/128k 3GB download limit plan. About a year later I was at their website and noticed that the download limit on my plan had been increased to 10GB and that the limit on the next cheapest plan was now 6GB. I downgraded to the 6GB plan which is AUD$10 less per month. Why wouldn't you save money if you could?

  18. #18
    Join Date
    Sep 2003
    Location
    Washington, USA
    Posts
    3,262
    Trying to pressure your clients into keeping a higher level of service isn't the way you want to go. Customers will sometimes downgrade regardless of the quality support and service you may provide. Just something you have to expect for and take in stride.
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  19. #19
    Join Date
    Nov 2001
    Location
    The South
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    5,408
    Originally posted by IncognitoNet
    Trying to pressure your clients into keeping a higher level of service isn't the way you want to go. Customers will sometimes downgrade regardless of the quality support and service you may provide. Just something you have to expect for and take in stride.
    Yep I mean, if they don't need it they don't need it, let 'em pay for what they need and keep chugging I say
    Gary Harris - the artist formerly known as Dixiesys
    resident grumpy redneck

  20. #20
    Join Date
    Mar 2003
    Location
    Leeds. UK.
    Posts
    461
    I agree with others, i would rather downgrade that loose the client completly.

  21. #21
    Join Date
    Mar 2004
    Location
    England
    Posts
    819
    I'm suprised by the lack of business sense I read in this thread. Are you running businesses or charities??

    We offer special treats on our higher packages therefore we don't want people signing up to the higher packages gaining the rewards then freely downgrading to the cheapest. Hence a £10 fee if they try it. If it's obvious they've just made a mistake and ordered a package with too higher specs for them then that's different. Which do you think makes a customer feel more special? Free downgrade or us waiving the fee "just for them"?

    Also the "rather downgrade then lose" arguement is silly, if a client is that ready to hop ship I wonder at the level of service and support you are offering? (I'm not trying to say it in a negative way that you all suck but have more confidence in the service you offer! Customers are loyal things in the main!)

    Andrew
    NetHosted - UK based hosting solutions.

  22. #22
    Join Date
    Apr 2004
    Location
    Eastbourne, East Sussex
    Posts
    110
    I'm currently rebranding my company and redoing all of my tariffs.

    I will be allowing the customer to customize their plan however they want, they will be able to add and remove hard disk and bandwidth online, 24x7.

    If they downgrade a price plan they have already payed for, then the system will just generate credit on their account, which can't be turned into real cash.

    I believe complete flexibilty is a good selling point.

  23. #23
    Join Date
    Apr 2004
    Location
    Eastbourne, East Sussex
    Posts
    110
    I haven't finished my new rebranded site yet...

    but here is the Linux price comparision page along with details of how users can upgrade and downgrade 24x7.....

    http://www.brightdawn.net/bd/order_l1/compare.php

  24. #24
    Join Date
    Nov 2001
    Location
    The South
    Posts
    5,408
    Originally posted by NetHosted-Andrew
    I'm suprised by the lack of business sense I read in this thread. Are you running businesses or charities??

    We offer special treats on our higher packages therefore we don't want people signing up to the higher packages gaining the rewards then freely downgrading to the cheapest. Hence a £10 fee if they try it. If it's obvious they've just made a mistake and ordered a package with too higher specs for them then that's different. Which do you think makes a customer feel more special? Free downgrade or us waiving the fee "just for them"?

    Also the "rather downgrade then lose" arguement is silly, if a client is that ready to hop ship I wonder at the level of service and support you are offering? (I'm not trying to say it in a negative way that you all suck but have more confidence in the service you offer! Customers are loyal things in the main!)

    Andrew
    If the customer got a "treat" by signing up for the larger package, a free doman name for example, that isn't offered with a smaller package that's a whole new can of worms, and would need to be addressed. HOWEVER if they ask to downgrade they're downgraded, that's life. UNLESS you have a contract, and frankly I have better things to spend my time on than trying (usually fruitlessly) to enforce a contract.

    And yes I WOULD rather downgrade than have them move to another provider, people sometimes "overestimate" requirements and find they don't need so much, rather than be a dick about it we just let them downgrade and keep right on trucking. For every 1 downgrade you'll see dozens of upgrades.
    Gary Harris - the artist formerly known as Dixiesys
    resident grumpy redneck

  25. #25
    I think a small downgrade fee of $5 or 10 fee is fair. After all, you do have to login to the server, change all the account settings and sometimes that can be a pain in the butt.
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