Price reducing?

[~ServerPoint~]

Times are tight now. In many countries dollar become more expensive...
I'm thinking about idea of reducing price for some services. Wjat do you think that will be good step to keep most customers loyal to us?
:confused4

[TSO]

Honestly, I would advise against this, especially if your prices are already competitive. An age-old (and constantly proven) business maxim says that it is always easy to lower prices but near-impossible to raise them (and this is espcially true for a commodity service like Web hosting). If you are currently profitable, your prices are competitive, and none of your customers have explicitly complained about the prices being too high, then I would recommend keeping them at the existing level.

[Technics]

We've just started doing specials that are for customers only to match what we're offering to new customers. Like now, new customers can get 50% off - we're running a special for existing customers to get cheap domain names :)

[microvps]

Most people earn with their web sites. And they earn with $$. And I assume they have funds to be able to pay for the web hosting.

[~ServerPoint~]

Honestly, I would advise against this, especially if your prices are already competitive. An age-old (and constantly proven) business maxim says that it is always easy to lower prices but near-impossible to raise them (and this is espcially true for a commodity service like Web hosting). If you are currently profitable, your prices are competitive, and none of your customers have explicitly complained about the prices being too high, then I would recommend keeping them at the existing level.
I agree with you and fully support you in here, But at the same time I have to say that we need to have our customer loyal to us. What is the most effective way to work on it?

[fcolor]

Reducing the prices is not always the best way to keep your clients. Yes - there is a crisis - but I think it would be more effective to make new promos, discounted services, additional offers etc, rather than reducing the prices.
Of course, keeping the level and quality of the services is the best way to keep the loyalty of a customer. And always ask them where you can improve - this shows you are interested in staying strong in the business.

[DanTheMan]

What I would do is credit the "loyal customer" some money in their account and that way they'll be like "Oh WOW Thanks, loser hosting doesn't do that over there! I'll stay for maybe some more..."

But I dunno how that would work out.

[~ServerPoint~]

Reducing the prices is not always the best way to keep your clients. Yes - there is a crisis - but I think it would be more effective to make new promos, discounted services, additional offers etc, rather than reducing the prices.
Of course, keeping the level and quality of the services is the best way to keep the loyalty of a customer. And always ask them where you can improve - this shows you are interested in staying strong in the business.

Thanks for your ideas and thoughts. Actually I have the same feeling that is not good idea at all.

[sellwhm]

You could give them more. Like more space/ram/bandwidth for your VPS & Shared Hosting but don't do it for your dedicated servers though.

[engineerroy2008]

Price reduction is ok if you are charging them around $50 per month or more, instead of this go for increasing their resources in the server

[Wojtek]

Or offer a free domain for anyone who has been a client longer then x months

[~ServerPoint~]

Or offer a free domain for anyone who has been a client longer then x months
That is good idea nut I believe that someone might not be interested in the free domain name.

[SiberForum]

Why don't just do your job on the high level. I'm sure that will help any company

[RU-Adam]

I would say just keep your prices the same. It kind of depends on the service you are providing but I have seen a few Colos promise a price freeze for 2009.

[JasonS]

I find that people like myself are worst hit because the £ > $ dropped dramatically. ALTHOUGH, it is slowly picking up now :)

[~ServerPoint~]

I believe that will happen quite often in the near future

[tumble]

Why don't just do your job on the high level. I'm sure that will help any company

Yep gotta belive that statment. I am for sure the highest priced provider on this board. and have no troubles getting and retaining customers. Granted it has been a bit slow. But thats nice it gives me a breather.

[vpsgod]

If your business is running for a long time & having good reputation then its not gonna affect you. However, you can offer specials if you wish.