I am always wondering, why renewal price is either double or 3 times of new purchase? At times I have lost clients since renewal price were 2 times or 3 times of new purchase. This is the standard practice these days, I would like to know why?
A recent example, Today morning I got an email for Norton that my Norton Internet Security is about to expired on 30th Aug and my credit card would be charged Rs 2190.00 for 1yrs subscription renewal. I thought of check the price of new purchase on their website and was surprise that 2yrs new subscription is Rs 2073.99. So, Why are existing customers being ignored by most companies?
Similar is the case if you planning to buy domain or hosting. Like in case of Godaddy, they would sell a new domain any where in between Rs 250 to Rs 350.00 and renewal would be anyway in between Rs 550 to 750 for .com domain.
Similar is the case with hosting, rather I have noticed that Godaddy renewal price are 3 times then their new purchase price.
So here are my concerns:
- Why are companies following these practice?
- Why you cannot have a standard price for new/renewal?
- Why renewal are 3 times then new purchase?
- Why are existing customers don’t get discount and benefits like new customers?
Do you feel these companies are just fooling us and this practice should be stopped!