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[LowEndFeed] Kudohosting thought nobody would notice a 10x increase in price - Page 2
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[LowEndFeed] Kudohosting thought nobody would notice a 10x increase in price

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Comments

  • tgltgl Member
    edited October 2019

    no kudos for them

  • DPDP Administrator, The Domain Guy

    @Francisco said:

    Sofia_K said: I cannot digest this theory that for the sake of Black Friday deals a host would first increase their price for 100%-400% and later in couple of days/weeks they'll offer something like $18/yr 2GB RAM, 50 GB disk VPS or alike offers just to make feel the customer : "Wow I'm saving sooo muchhhh, let's buy!"

    Why not? It's an old trick done in retail that's illegal in Canada at the very least.

    I mean, ChicagoVPS used to list their pricing as $24.95/month or so with a constant 75% discount. People always want to feel they're getting a deal/discount even if you're lying to them.

    Francisco

    That's sick :|

  • uptimeuptime Member
    edited October 2019

    There was a settlement of $50,000,000 in a class action lawsuit against JC Penney (an American retail chain) for deceptive pricing (fake discounts via "price anchoring") a couple years ago.

    Here is the website of an attorney involved in that case:

    https://www.stanleylawgroup.com/attorney/matthew-zevin/

    Matt has obtained numerous appellate and trial-court decisions that have helped shape modern consumer and securities fraud law, including the seminal case of Hinojos v. Kohl’s, 718 F.3d 1098 (9th Cir. 2013), in which the Ninth Circuit held that consumers who allege they would not have purchased a product but for a false price discount suffer an economic loss and have standing to sue under California’s unfair competition laws. In another false price-discounting case, Matt developed custom damages and restitution models that the district court relied on to deny the defendant’s motion for summary judgment, Spann v. J.C. Penney Corp., 2015 WL 1526559 (C.D. Cal. Mar. 23, 2015), and to certify a class of millions of consumers. Spann v. J.C. Penney Corp., 2015 WL 3478038 (C.D. Cal. May 18, 2015).

    @deank please advise :smiley:

  • deankdeank Member, Troll

    Amitz.

    Thanked by 2uptime Amitz
  • @Francisco said:

    Sofia_K said: I cannot digest this theory that for the sake of Black Friday deals a host would first increase their price for 100%-400% and later in couple of days/weeks they'll offer something like $18/yr 2GB RAM, 50 GB disk VPS or alike offers just to make feel the customer : "Wow I'm saving sooo muchhhh, let's buy!"

    Why not? It's an old trick done in retail that's illegal in Canada at the very least.

    I mean, ChicagoVPS used to list their pricing as $24.95/month or so with a constant 75% discount. People always want to feel they're getting a deal/discount even if you're lying to them.

    Francisco

    You're mistaken. It is legal to increase and decrease prices, it is illegal to claim high regular price when it never was. What the company is doing is legal, normal and fine and specifically to avoid being illegal. That's why I'm reacting the way I am.

    It's like saying something on sale for $39 when regular price is $99 and they've only ever sold it for as high as $69... that is what Sears got in trouble for and what is illegal.

  • @Hani said:

    @TimboJones said:
    Have you met "promotional offer"? They are pretty common.

    If I understood correctly the issue here is that they are doing price increase just to decrease it after approx 1 month on BF . So the price increase here is not done as corrective measure to have more sustainable offers , it is merely marking tactic used to give the customer false sense of having an offer

    another point @teamacc is trying to imply (i think) is that those offers seems all managed by same entity and not what it looks like as different companies competing for customers (all offers doing price hike at exact one point and doing price discount at exact another point in the future)

    To verify if the claims by @teamacc has any base I think 2 easy tests can be done

    1- wait till BF and see if the prices of those hosts will drop again (or other set of hosts will drop their prices if we assumed all is managed by same entity )

    2- to verify this is not normal behaviour having all hosts in LEB increasing their prices before BF we could easily check LEB offers before BF 2 or more yeas ago . I mean if this was normal practice in the business it should have been done regularly before every BF every year

    The tests are flawed because we know the result is a sale on BF to be better than previous deal offered. This is expected. For everyone.

    How can things ever be on sale if prices don't go back up ever?

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