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OVH change pricing, could be UK only, current and existing customers.
AnthonySmith
Member, Patron Provider
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
Interesting as the recovery of the GBPEUR is not only at 10% loss and they are putting prices up by 20%.
Oh well I can afford the extra £3.60 but I am sure that this will drive people in to a frenzy.
Comments
its a strategy marketing
Thank god you pointed that out, I was so confused.
In case anyone wondered this impacts Kimsufi as well so I assume SYS as well.
Interesting that 'price increase from our suppliers' is probably because the British suppliers are themselves absorbing price increases from imports due to the weak pound.
I spend about £400/m with them. I don't think it'll cause me to look elsewhere but perhaps slightly closer to taking that look.
Only OVH UK?
soon or lether is sure will impact. 20% up price is not easy when you buy something wholesale. ....
I think you meant 'sooner or later' , and again, thank you for your wise words, I would have had no idea if you did not explicitly point it out.
I also wonder how long it will be before we see a thread from an annoyed 'reseller' because they just lost their profit margin or worse.
Interesting. Is that just the GBP prices, or are the euro and dollar prices going up too? What happens to people who paid setup fees for servers? They can't just up and leave without abandoning that sunk cost.
I don't see anything about this on either the US or UK OVH sites.
Is a deadpool coming?! Heh. :O
The USD has absolutely tanked against the EUR recently, probably related to that over grown oompa loompa in a wig that is soon to run the country. so expect it to spread to the USA if it is not already counting them.
Could just be a timed email, still middle of the night in most of the USA.
Their reasoning says their suppliers (from Britain) are the cause of the cost increases. This suggests that all their business is affected, not just UK paying customers.
Eh? The USD is way up against the euro (xe.com). I think you are pulling our leg
should be an interesting year for LET.
Ok. I had to look up if Boris was in any succession hierarchy when I read this.
@willie I thought providers never raise prices on customers. Its just not done you argued a few days ago
School boy error, I was reading the inverse on xe.com sorry.
Well.. lets not, no one has a crystal ball, companies eat money to survive, they will do what ever is required to survive within reason, raising prices within reason is a reasonable measure.
I was about to buy a SYS server today, usually I buy from OVH on their US site but if I switch to their world site it saves me close to $10 off the price doing the conversion (at least on the server I want).
hopefully this is just for Kimsufi UK. I pay Kimsufi FR in Euros so I'm not sure how they can justify an increase.
I only have Kimsufi FR and I got this email.
Just got a minor heart attack, just to see it affects UK only.
Title should be changed.
It's strange I don't see how brexit could really make that of a big change for them, as most of their servers & teams are in France.
Maybe they were channeling some of their profits to the UK? Even though, I don't see why brexit would be a problem.
It sounds to me as if they wanted to do a global increase and needed an excuse. This one is pretty lame.
If it makes you feel better, you keep thinking that
"until your 15th of January 2017 invoice."
Since when do they invoice people on the 15th of the month?
Well, we are not completely sure yet, although I haven't received this email and we are only using their Canadian location.
I would be surprised if they ship everything from the UK for their NA operations o_O but it's OVH so who knows.
Francisco
How do you Providers usually handle these types of situations : where your own providers increase their prices ?
Do you absorb the increase as loss ? If so, what's the max and based on what metric exactly ? If not, do you increase your prices ? Increase overselling ratio (when available and when you already have a standard and not just milking the server ...) ? Change providers ? ...
Waiting for the dudes that were bitching about @time4vps discount removal to come to the thread
The bottom line, if they can raise prices 20% and people stay (they will) then they will do it in all regions, because profit.
And if so, it means the management was skimming the shareholders by not doing its job properly.
The majority will stay, as long as OVH is the cheapest option. A huge crowd will jump ship immediately if there is someone offering servers 10 cents cheaper than OVH.
They did change CEO after prices fuckup on kimsufi line and with the will to grow bigger and bigger.
This price increase could be a move they were willing to do for a while...