Black Friday Sales?

[wyredwing]

Hey Gators, will HG be doing sales on Black Friday?

[fused0ne]

Yes but only for new customers, they seem to have forgotten about us current customers. See my post here http://forums.hostgator.com/black-fr...nt-t94424.html

[EarlyOut]

Why do so many people have trouble understanding the purpose of a "new customers only" sale? And why don't they understand why a company can't offer the same deal to existing customers?

The idea is to offer hosting at a price that actually produces a loss for HG (or at best, no profit), so that they'll acquire new customers. The hope, of course, is that those new customers will stick around, and will renew at the regular price, and HG can finally start generating some income from those accounts.

So what happens if HG offers similar deals to existing customers? "We lose money on every account, but we make it up on volume." Do you see why that doesn't work? Do you understand why that's not a workable business model?

Of course, HG could offer discounts to all existing customers. But they'd have to raise the "list price" for everything, or they'd go bankrupt. So, do you want to pay the regular $10 a month for something, or do you want to be given a 50% discount on the same plan, but which now has a list price of $20?

[Dwight]

Originally Posted by fused0ne

Yes but only for new customers, they seem to have forgotten about us current customers. See my post here http://forums.hostgator.com/black-fr...nt-t94424.html

I knew the price when I signed up. In that time, HG has upped my disk space and bandwidth more times than I can remember, and the price is the same. I don't have anything to complain about, and neither should anyone paying what they agreed to pay for the service they are getting.

[backslash05]

Originally Posted by Dwight

I knew the price when I signed up. In that time, HG has upped my disk space and bandwidth more times than I can remember, and the price is the same. I don't have anything to complain about, and neither should anyone paying what they agreed to pay for the service they are getting.

Also added new features and services.

[Dwight]

Originally Posted by backslash05

Also added new features and services.

That's right.

And as long as I'm jumping back in, if the sale wasn't "new customers only" what would have prevented us from getting the same package as we have now, transferring all sites, and then cancelling the old one? Honestly, HostGator didn't get this far being stupid.

[eurgbp]

even if Black Friday brings losses to HG in short term, it is still a great PR move and profitable in a long run. And what real losses you can actually sustain in online business? it is web hosting, it is a selling of digital virtually unlimited services, not goods.

[Dwight]

Originally Posted by eurgbp

even if Black Friday brings losses to HG in short term, it is still a great PR move and profitable in a long run. And what real losses you can actually sustain in online business? it is web hosting, it is a selling of digital virtually unlimited services, not goods.

That's just wrong. Diskspace and bandwidth cost HG. It is not the same as selling a downloadable program over and over.