What is your take on OVH raising its prices?

[SenseiSteve]

This is supposedly a letter from OVH sent to one of its clients. (not me)

Dear customer,

At OVH we are committed to remaining competitive in both our prices and product ranges. While we have postponed action for as long as possible, economic changes following the Brexit decision have forced us to re-evaluate our pricing.

Back in June the UK decided to leave the European Union which caused the UK economy to rock and weakened the British pound against the Euro/Dollar. This impacted many businesses across the UK and in OVH’s case it triggered a price increase from our suppliers which we have absorbed over the past few months.

In response, OVH has had to carefully review its pricing structure across certain product ranges. As expected, following our in-depth review we have had to increase our Dedicated Server prices by 20%. We are in the process of updating our website to reflect this change today (Thursday the 15th of December). At the moment the new pricing only affects new customers and new orders. In contrast, as a valued existing customer, these changes will not be applied to your existing servers until your 15th of January 2017 invoice.

Thank you for your understanding and continued trust in OVH.

Hiren Parekh,

Director, Sales & Marketing

OVH UK

 

[HostXNow]

Hey Steve,

That customer is probably me from a different forum? Well, I won't copy and paste. It's all good. :thumbup:

In short, I'm not happy about it as 20% is a lot! I find it strange how they offer introductory discounted offers for their new"discovery" locations but charge 20% extra to existing customers at old server locations. What's that all about!? Is it because of Brexit or getting extra money from UK customers because their new locations aren't doing as good as they thought they would!? I know their Singapore, Poland and Australia locations are not even setup 100% properly yet and a lot who pre-ordered aren't happy about that.

I would've preferred it if they only made the change for new customers but what can you do. I don't use their support and so never had to complain about it, but by them charging extra 20% that may well improve their support for those who rely on it but complain how poor their support is. I don't know what their support is like because I very rarely need it unless hardware/network issue -- I don't contact them about non-hardware/network related issues.

Their DDoS protection is some of the best around, though, and so you have to give them that.

I don't think many will say much about it because it only affects the UK at the moment, but if it affects EU and US, then they'd be an uproar about it no doubt.

Ok, I'm done rambling now.

 

[easyhostmedia]

This is supposedly a letter from OVH sent to one of its clients. (not me)

very possible as i saw a big increase in prices from some of my suppliers since here in the UK decided to leave the EU.

 

[kunnusingh]

My provider does not increase price who is also a UK based provider so this is a huge increase, I think they should stick with their price and next time do not sell server at $10/m and then regret that why they sell at this price and now we have to increase price by 20%

 

[easyhostmedia]

My provider does not increase price who is also a UK based provider so this is a huge increase, I think they should stick with their price and next time do not sell server at $10/m and then regret that why they sell at this price and now we have to increase price by 20%

the fact is that costs have increased, yes most hosts will keep the prices the same for current clients, but they will increase plan prices for new clients.

you have to think of the fact is as utility prices increase which increases the overheads for a business then these extra costs have to be passed onto clients.

look at a supermarket. are you paying the same for a tin of beans as you did 5 years ago.

 

[jeff2600]

The pound was hit hard since Brexit, I would say that 20% increase overall on their prices is logical. The profit margins are slim as it is, if you have a 20% devaluation on your charging currency, well, you have to do something...

 

[easyhostmedia]

The pound was hit hard since Brexit, I would say that 20% increase overall on their prices is logical. The profit margins are slim as it is, if you have a 20% devaluation on your charging currency, well, you have to do something...

Yes, i had to close a backup server in Germany as within days of the brexit vote i was told it was being increased from $5 a month to $21 a month .

Also my main servers are in the USA and for all i am paying the same USD for these as i am in the UK the currency conversion has seen a 30% increase to what leaves my bank each month and that is just on servers.

litespeed, softaculous, WHMXtra, WHMCS are all costing me more.

I can only cover these increases for so long before i will have to increase the charges to current clients. My clients are aware this will happen as i informed them, but like any changes i will inform clients at least 14 days before i make these changes

 

[whmcsguru]

At the end of the day, prices go up. I've had to do some of this myself over the past year, with one specific product that demanded more development time than it was worth at the price I was selling it at.

For a company like this to increase that price that drastically, they're probably already taking a hit. I mean, they are going for the bottom of the barrel anyways.

Maybe it's a good thing. Get the really lowest of the low out of there, making the service better for everyone?

 

[easyhostmedia]

At the end of the day, prices go up.

trouble is too many people don't understand this and think they should be paying the same price as always.

I would love to keep the prices the same, but it is impossible.

Since i started in 1999 i have increased prices twice. I know some hosts that increase prices annually