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I wouldn't know what the margin is in this business but I assume you buy a bit over the capacity, specifically to allow new customers to come in. Perhaps setup
by fierarul 16y ago
I wouldn't know what the margin is in this business but I assume you buy a bit over the capacity, specifically to allow new customers to come in.
Perhaps setup fees /kinda/ make sense if you are some high-quality name in the business and people will know they are staying long-term. But if I see a well-known company without setup fees and your company with a setup fee it won't take long to decide.
What you mentioned is far more decent: a bonus for payment in advance but I don't see how they expect to charge me the equivalent of 3 months in advance just to test them out.
- lsc 16y agoYeah, well, I did what I did mostly 'cause i recognize that I don't have the name recognition to carry off the setup fees... your points as to the customers perception of setup fees are all very valid. Really, it's less about margin, though, and more about credit. If I had more, it wouldn't really matter... but I don't, so it does. for a while I was renting out whole servers at nearly co-lo rates... with the catch that the customer needed to pay a setup fee that would cover the parts cost of the server up front. It was pretty popular, actually; I only stopped doing it because it put me in a bad place as a provider... thing of it is, sometimes you really do need to fire your customers. I don't want to be in a position, though, where I get a bonus for firing my customers.