Going to Disneyland - Gas Prices Up - Up Your Hosting Rates

• By Tom Millitzer on July 11, 2008

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Ever since the hosting industry was born the rate of inflation has been low. Historically speaking today it is considered moderate, hovering around the 4% mark.

Well everyone is complaining  so ...how can that be? Most people have either forgotten what it was like 25 years ago, or are just not old enough to really have experienced it. We like McDonalds.

Then those gas prices...news, news, news, blah, blah, blah

Given the current perception of reality all prices have gone up 30% in the past year...well gas did, so that is logical.

TAKE ADVANTAGE OF THE SITUATION. Raise your rates. It is easier to do so today during these high inflation times (4.18%) then when inflation is low (2.5%).

Some reasons to raise your rates today ---- or at least some great reasons and excuses:

• Our electric bill is going up...”energy you know”
• We are investing in alternative energy sources…”everyone has to help”.
• Due to energy prices more people are using the Internet. Demand for Hosting and bandwidth has never been greater…”you are actually a winner”...or.."The world appreciates you."
• We went Green (always use the capital "G") and are passing just a fragment of the cost on to our customers..."Thank you for helping!"
• We are reducing our carbon footprint…”Do you know what carbon credits cost today?”
• Your client is vacationing at Disneyworld...Tickets (no air, hotel, tips or gratuity) for his family of 4 is about $300 day...your increase is peanuts.

Or my favorite..."We have not raised our rates in 5 years".I usually think that the first of the year is the best time to raise rates. It should be an annual event. But with gas, airfare, luggage surcharges and Budweiser increases - now is the time to jump on board.

After all, AOL just raised rates 20% - they have always understood perception.

 

More about Tom:

NCC - New Commerce Communications

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