Server Pricing (Older plans)

[David2e]

Has anyone else noticed, or fallen into this "trap"?

I have a Pentium 4 server... so a couple of years ago it was $169.95/month but raised to 2Gb RAM so $219.95/month.

Now there is a Pentium D server, similar stats but smaller HDD... $99.95/month... or a better Xeon Dual-Core for $199.95 (with 2Gb RAM, larger HDD).

It seems my old plan will not get updated by CrystalTech to fit in with current market rates. After having me as a loyal customer for some 5 or so years, and had near 2 years of me on a Dedicated Server... their response is to keep old long-term customers on the pricing from years ago?

Just very disappointed to discover this... and if I were to stay with CrystalTech to get current market rates I would have to go through the hassle of changing servers!

[Will [CT]]

I would agree with you that migrating everything over to a new server can be somewhat of a hassle, but consider the long-term benefits...

By moving to a new server, you'll save $20/mo (on the Xeon Dual-Core) since you won't need to purchase the extra memory, and you're new server will be 64-bit and much more powerful.  If needed, we do have staff that can assist with transferring your data over (there is a fee associated with this service, but depending how much data you have on your server, the convenience may very well be worth the cost).

Keep in mind that even though your current box is older, it is more expensive to maintain.  The newer 64-bit servers are much more efficient and, as technology in general tends to be as time goes on, less expensive.  Also keep in mind that you're not bound by any term contract, so you're not exactly trapped in keeping your existing server.  The long term benefits should (in my humble opinion) more than make up for any short term work that you would have to put into it.

Like you mentioned, you're a long-time customer, and we want to be sure the transition is as painless for you as possible (if you do choose to upgrade).  If you would like to send me a PM with your phone number, I'll have a rep contact you ASAP to let you know what we can do for you.

[mhojnik]

Like you mentioned, you're a long-time customer, and we want to be sure the transition is as painless for you as possible (if you do choose to upgrade).  If you would like to send me a PM with your phone number, I'll have a rep contact you ASAP to let you know what we can do for you.

hm, wouldn't saying that he'll have 50% off the setup fee be a better marketing move than having a sales rep calling everyone interested in migrating? does CT have a policy on server upgrades (from old plans to new plans) that includes some discount on the setup fee?

sorry to bother, but I think a plain and simple answer would be the best here, mainly for all the other dedicated customers that are thinking of upgrading to a newer dedicated plan.

[David2e]

Thanks Will & Mhojnik

Since my posting (due to a ticket, not posting), I have had CrystalTech Sales provide quotes etc for a new server and it appears that is the only solution.

Of course a better server for less money is great!  But that is not what I am getting at here.

I already paid setup for a server some years back, which I am currently happy with (but in future expect I will need a lot more bang).  I already went through setting it up etc.  But now, to receive the current market pricing from CrystalTech I have to go through that again... and having remained with CrystalTech doesn't mean I get treated as any more of a client with assistant than someone just 'looking around'.

Regina (Sales) tried to explain that the Xeon Dual was just an upgrade. Which didn't address my point. In order for me to upgrade from the Pentium 4 with 2 Gb Ram ($219.95/month) to a Xeon Pro with 2Gb Ram ($199.95/month) I'd be moving to a cheaper server... Which is exactly my point!

As a long-term CrystalTech customer, I get charged above current market rates for simply not changing and going through the hassle.  Is the setup fee etc worth that much to CrystalTech?  or making the extra money out of long-term customers more valuable than treating them well worth it too?

I'd be more than happy to simply "upgrade" (though it isn't speaking $s - hence my issue) too... but as I said to Regina, I did not currently want the extra upfront cost associated with setup, transferring data and so on.

Her response... for me to pay even more upfront to save on setup & get free months!

As Will points out:

The newer 64-bit servers are much more efficient and, as technology in general tends to be as time goes on, less expensive.

I can certainly understand new technology is cheaper... but has CrystalTech not earnt it's target revenue on my current server? Is my current server still costing, or worth, $219.95 per month to CrystalTech? If leased, is CrystalTech still paying prices of years ago for the old technology? (only fair reason I can think of as to why CrystalTech is treating us like this!)  Obviously it is no longer worth this to me, given the alternatives!

Even as mhojnik suggests, a discount on setup for a long-term/existing customer would at very least be a nice gesture... even if it still doesn't address the issue.

Why should further setup costs and extra work be needed for long-term CrystalTech customers just to keep paying market rates, if the existing server is still adequate?

Unfortunately, for customer service and relations... the burden of switching for these reasons means I would certainly look elsewhere first.

[David2e]

Thinking more about it, and considering CrystalTech's own situation...

I expect CrystalTech charges existing customers setup etc as a new customer, otherwise a customer can simply keep switching servers as often as they like, creating more work than they are worth.

There must be a time where CrystalTech realises a customer has taken on the server for a reasonable life. At this time, in order to properly look after long-term customers, CrystalTech should recognise this and make some sort of arrangement to continue looking after the customer.

For example:

12 months of server usage - CrystalTech may consider waiving setup fee.
18 months of server usage - Waive setup fee & include 1st month transfer period
24 months of server usage - Old plan brought into line with new plan market rates

I feel something like that would start to head towards looking after customers properly.

Until I am treated right, anywhere else will be my first option for 'upgrading' my server.

[David2e]

Just an example I used on another thread to explain the issue a little bit more clearer for some (particularly for CrystalTech Sales staff!)

Example
Say it is floorspace in a building.  Couple of years ago you rent an office and pay monthly $x. No problem.  But now it is 2 years down the track, you've stuck with the landlord and the floorspace.

New tenants can pay $y (less than you) now and get a bit more space, and airconditioning included.

Doesn't that seem unreasonable? ...considering the landlord says you can still pay $x (more) and have the less space and no air-con... or to pay the current market rates you can take the hassle of changing floors in the building to get more space & air-con and will charge you a small fee for their 'admin'.

But if you are currently content with the smaller space, and no air-con... after your years of custom with the landlord, mightn't it be reasonable for the landlord to either:
 - put your rates in line with the market (new customer paying $y); or
 - assist with moving you to a spot where you can get the new market rates (without the hassle & extra upfront cash)

Am I being unreasonable?

For me I would rather pay a new landlord a little more than stick with the landlord I feel isn't really helping me out and purely putting their pocket first.

[morovan]

Am I being unreasonable?

Yes - you are being unreasonable.  You enter into a contract with CT when you leased your server, now you want to change the terms of that contract without any repercussion. 

Unfortunately, the world does not work like that.  You are welcome to stay on the server you have, otherwise pay the Man and make the move. 

Keep in mind, you will also be upgrading to all of the latest Smartertools products as well, there is a lot of value in making the move.

[morovan]

Example
Say it is floorspace in a building.  Couple of years ago you rent an office and pay monthly $x. No problem.  But now it is 2 years down the track, you've stuck with the landlord and the floorspace.

New tenants can pay $y (less than you) now and get a bit more space, and airconditioning included.

Example
You lease a car from Ford in 2005, when 2008 rolls around they will not simply give you a new car because you demand it.  You must sign a new contract and begin your term again.

[Steve Herold]

Example
Say it is floorspace in a building.  Couple of years ago you rent an office and pay monthly $x. No problem.  But now it is 2 years down the track, you've stuck with the landlord and the floorspace.

New tenants can pay $y (less than you) now and get a bit more space, and airconditioning included.

Example
You lease a car from Ford in 2005, when 2008 rolls around they will not simply give you a new car because you demand it.  You must sign a new contract and begin your term again.

Using my ATT land line as an example.   When they cut prices or add new features all I have to do is call them and ask for an upgraded plan.

Cell phone companies do the same thing except they require you to extend the contract....including a new phone every two years. 

From my perspective, ignoring existing customers and giving all the incentives to the new customers is a sure way to have them start looking elsewhere.

Steve   

[italait]

We also offer customers a "loyalty" discout if they want to move or upgrade hardware: after 1 year it is 50% off the setup fee, and after 2 years it's 100%. As Russ said, it's not a matter of the hardware being obsolete after 1, 2 or even 3 years, but the discount does make it easier to change if you want to.

Derek Curtis
dcurtis@crystaltech.com
CrystalTech Web Hosting, Inc.

Derek[CT] made the above post in the Dedicated forum only a year ago under the topic server life.

Surely, if the offer still stands, it answers the criticisms being made.

[morovan]

Derek[CT] made the above post in the Dedicated forum only a year ago under the topic server life.

Surely, if the offer still stands, it answers the criticisms being made.

I can confirm this, they waived my setup fee when I went from Pentium D to Xeon a couple months ago.

[David2e]

I'd have no issue if CrystalTech has terms, but they don't and that is a part of their marketing/sales. Customer retention is usually much easier than the initial sale.

I enter a contract... month by month. I am not saying there is any problem there... just that if CrystalTech expects me to continue on any contract, as a customer I would hope to be looked after... so if that means changing the pricing (I doubt the contract itself) then so be it.

Example
You lease a car from Ford in 2005, when 2008 rolls around they will not simply give you a new car because you demand it.  You must sign a new contract and begin your term again.

When you lease a car, you know about the upgrade, inconvenience is minimal, rates stay much the same, and you can often keep the old car at a reduced rate.

If offers such as discounts off setup still stand - great... but why aren't they telling me this when I have told them my issue with how I am treated no better at all as a long-term customer than someone off the street.

Since CrystalTech have not been the ones to come forward directly and tell me what they can do to keep me as a customer... I have been looking around and found a good size, recommended host that has free setup and double-ram... prices no higher than CrystalTech and a broader selection of servers.

I really think CrystalTech would have to do more thna 50-100% off setup after all this.

[italait]

If someone offered me a brand new computer with more memory and a more powerful processor AND they told me I need no longer pay for the old one, there would be no charge for moving to the new one, and my monthly payment would be less, then I would be pretty happy.

...I really think CrystalTech would have to do more thna 50-100% off setup after all this...

"After all this" - a few whinging posts and you expect virgins to fall at your feet, special treatment and to name your own pricing.  Such an attitude just may lead to a few disappointments.

Stomping off in the huff and telling everyone that you have found a hosting company that charges less does not necessarily mean that you have found a better host.  One could just as easily stomp off to a more expensive host and still receive service that does not meet the level of service and openness provided by CT.

The environment at CT (provided by both customers and staff) provides a resource considerably more valuable than simple hosting.

Just my $0.02

[David2e]

Having found an alternative that has been recommended to me is only what has happened in this situation.

I certainly don't expect special treatment, nor treatment different to others. I was merely stating how I felt at something that surely must be happening to a lot of long-term customers on an old plan.

If you think you can run a business renting out stuff... and leave the old stuff at higher rates for your long-term customers but the newer goes to new customers at a cheaper rate... and everyone is happy... I can only say I'd be surprised.

As a customer I would simply like to feel I was being looked after, in this case I don't and I have said why.  Wish you were a customer of mine, happy with the old stuff!

[wdevine]

I'm in the process of upgrading to a new dedicated server and now is a great time to make the move.  If you can afford to pay for a year in advance you can get 3 additional months for free and the setup fee is waved.  That's a good chunk of cash when you calculate it out.

This also is the perfect excuse for Windows based dedicated users to possibly be early in on Windows Server 2008.  Also by migrating, it makes me have to do some house cleaning and re-address things like backup plans/necessary software, etc.

For me, there are definitely way more pluses than minuses when migrating to a new dedicated server ever 1.5 to 2 years.

Bill