Companies honesty ?

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Posted by sofs, 11-03-2002, 06:52 AM
I was looking in the advertising section. There are some requirements like Space: X GB Transfer: Y GB Price: Z Many companies reply to this kind of advertisement. But Im wondering how is happening that who reply usually have Space: half X or less Bandwidth: half Y or less Price: grater then Z. Seeing this kind of discrepancies Im asking if these companies are honest to the customers which sign on their site and if they can respect their engagement for the customers which sign up based on the forum advertising? OK. Special offers. I can maybe understand them up to 20-30% of the base price, but more then 50% of the advertised price on the site I think this reflects that these kind of companies are in such financial situation that they do anything just to catch another customer or their prices and profitability calculations are based totally on SF.
Posted by TheTech, 11-03-2002, 08:57 AM
It depends on who the reseller's provider; what their add-on costs are. Some companies actually put money into thier business, like I, so financial problems have been avoided or never happened yet. -Kyle
Posted by mpope, 11-03-2002, 12:54 PM
Hello, You must remember, the cost of acquisition of a new customer on these boards is very low. We have paid upwards of $120 per customer with some of our other advertising methods (which we found to be a good deal and well worth it, BTW ), so if we can acquire a new customer at a cost of $0, we can afford to give the customer a very good deal. Anyway, it all just has to work out in your business plan. You have to make sure you can afford to give what you are quoting, otherwise don't quote it.
Posted by The3bl, 11-03-2002, 01:07 PM
I agree and I also wonder what their current customers think when or if they come here and see the same plan they paid a preminum price for sold for a 1/4 of the cost or less. If I was looking for hosting and I saw a host under cut their own costs that low to get another customer I would think they must be needing cash.
Posted by mpope, 11-03-2002, 02:05 PM
Well, we only give discounts when we put together custom packages. Now, granted, many of these packages are darn close to some on our site, however they are never exactly the same. So, if any customers come here and see a lesser price on a similar package, they can always ask for a custom quote also, and we will cut out all of the stuff they don't need and give them a similar deal. Oh yeah, and I guess we're a little different b/c we never go anywhere near 1/4 or less of the cost.

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