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Yes - pricing low, then raising, doesn't seem attractive. New customers may be driven away by the higher prices, and existing customers may be upset that they're seeing an increase in price with no additional benefit to them. To me, it somehow seems not completely straightforward. I really prefer to be straightforward with my clients as much as possible.
If you're able to institute a "price lock" - you start out offering lower price packages, and for people who stay with your service, their prices never rise - you could start prices low and go high. However, that can be an extra admin headache for you: higher churn in the beginning, keeping track of which clients are pricelocked at which levels, and so forth. Plus initial low costs may attract some of the types of customers you're looking to avoid: the scammers and abusers.
Whatever you do, there are risks involved: start high and lower your prices, you run the risk of few new customers; start low and raise your prices, you run the risk of alienating your existing customer base and giving yourself a more complex admin situation. Just figure out which set of risks are most acceptable to you.
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☷ Lesli Schauf, TLM Network
☴ Linux and Windows Shared Hosting: Scribehost
Last edited by Lesli : 03-15-2007 at 01:57 PM.
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