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Thread: setup fee?

  1. #1
    Join Date
    Dec 2006
    Posts
    205

    Exclamation setup fee?

    Somewhere* I did read "setup fee" means unncessary fee or extra fee as the setup process is automated by hosts and actually there is no setup cost.

    But how about if the host is charged one-time fees when a new client comes such as voice verification or MaxMind FraudGuard hits, you will be charged for this services once so how would you cover the cost of it? then setp fee is still extra and unnecessary fee?


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    * (http://www.webhostingtalk.com/showth...ight=setup+fee)

  2. #2
    Join Date
    Oct 2007
    Location
    Northampton, UK
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    You've either got to have a setup fee or work those costs into your regular monthly prices.

    I guess it depends on which you think customers are more likely to want to pay.
    SysAdminMan - Asterisk PBX hosting - FreePBX, A2Billing and Elastix

  3. #3
    Join Date
    Jun 2007
    Location
    North Carolina
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    4,987
    Quote Originally Posted by bucasia View Post
    You've either got to have a setup fee or work those costs into your regular monthly prices.

    I guess it depends on which you think customers are more likely to want to pay.
    Unless the person plans on selling massive amounts of resources for $1.00/month, there should be no problems with getting through MaxMind. You simply need to price your products well.

  4. #4
    Join Date
    Feb 2003
    Location
    Cumbernauld, Scotland, UK
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    Every trader and company is allowed to set their own tarrifs
    Some like to charge a one-off up-front fee, others like to spread it over the term, and so on
    Sadly it is up to the customer to find the right deal for them...
    M8 INTERNET : Simple and cost effective website hosting from the UK
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  5. #5
    Join Date
    Dec 2006
    Posts
    205
    we prefer to stay affordable rather jacking up our monthly price so we just did setup a small setup fee to cover the cost of phone verification and MaxMind Fraud Guard.

  6. #6
    Some hosts tend to charge a setup fee to ensure that the clients make a commitment and thus stay with them only because they have already paid the hefty *setup* amount.
    Personally, I feel it is unfair to charge a setup fee for things like shared and reseller packages. It is till some extent justified to charge a setup fee for Dedicated Packages.

  7. #7
    Join Date
    Sep 2003
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    3,854
    Quote Originally Posted by m8internet View Post
    Sadly it is up to the customer to find the right deal for them...
    I would say consumer choice is actually a positive thing
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  8. #8
    Join Date
    Oct 2007
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    I think it is more of a marketing stuff. You charge a one-time set up fee if the client pays monthly, but if he can commit to paying a year of half year in advance (or a more advanced plan), then you waive the setup fees...
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