Answer for: New prepayment options: Your thoughts?
#3 Insufficient information to make
an informed decision.
My initial and honest reaction is an observation that the way this partial picture is presented suggests discounts are masquerading as price increases.
Based on the no-addons scenario, moving to the new single plan on a monthly basis means starting $1 higher than the current $14.95 value plan it's based on. For a new starter that would be $6 higher than the current starter of $8.95, or a 44% hike, making prepayment more of a necessity than an option. If all someone needs is an $8.95 plan then two years pre-pay is not good use of the money in order to save $24.
As the value of money decreases with time, my modest expectation were for an up front payment discounting the current prices. There is of course an efficiency saving to be made by having only one plan, but that's a saving that directly benefits modwest, so in terms of the new plan, for me, much will depend on the full picture.
My advice is for many small and gradual changes rather a radical overhaul.
Are there similar plans for VPS?
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The payment scenario is somewhat complex, but the complexity is not meant to obscure price increases. Our aim is for transparency, so what further information do you think customers need to understand these different payment options?
The transparency and openness is most welcome as I hope my input is.
Your point, that the single new plan is more complex than those it replaces. When topics were raised about the possibility of a prepayment discount there was no mention of any new plan, the expectation was for a prepayment discount on existing plans.
While I see many benefits for a one plan approach, easier to discount being just one, I do not see any benefit for those on an existing starter if they switch to the new plan, because the new higher starting price forces a prepayment to bring the price back inline with the current starter. I do not want to be forced to prepay and don't want to be penalized for not.
The same would hold true for a similar VPS plan. I'm not knocking either as I think it's a good idea, I just do not want to be paying more than I do now, more so when the exchange rate has for some time been an unwelcome squeeze.
You might say that people do not need to switch, but a single plan is easier to administer and bill. My previous host did something similar and forced the switch by giving notice on the old plans. I found myself paying almost double, so I left. I do not want to be priced out of hosting at modwest.
You can argue that the new plan is more generous, but that leaves some unfairly paying more for what they do not need and do not use.
I noticed votes of "well said" agreeing with me and "poorly said" disagreeing but not saying why they disagree. It would help if those disagreers contributed some counter argument as I'm only saying why I feel there is insufficient information for me to make an informed judgment at this stage.
I guess an email with an illustration based on my existing plan would put my mind at rest and an undertaking that no-one need pay more would put all others at rest. Do that and you will have pulled off a switch to single plan that leaves no customer or modwest worse off then they are now.
@Squiggle: Your concerns make perfect sense to me--this is exactly the kind of dialogue we're hoping for.
I agree with the OP on their observations. I would add the following:
I would not have chosen Modwest for my new project with a 1 year pre-pay commitment, nor with a $15/mo starting monthly rate.
As an EXISTING customer who has experienced your outstanding customer service first-hand, I would be happy to pay a full year at a time to keep the $9 rate.
I suggest offering new customers a one-time 60-day or 90-day trial at the 1 year rate (prorated), to overcome such buyer doubts. (After working with three different international hosting giants, I would say your customer service is FAR superior - though I haven't done anything that challenges bandwidth yet).
If/when my projects begin producing significant revenue/traffic, I'll probably upgrade to your more expensive hosting options. Until then I like/need the low cost for the prototyping and testing period.
@Aheld: Your point about new customers (as opposed to preexisting Modwest customers) being hesitant to make long term commitments really struck a chord. Thanks for you input, this is something we'll consider very seriously.
@Squiggle: Thanks for your feedback so far! You've identified some key information that has been left out of the hypothetical payment options and new plan. Specifically, we didn't make it clear that customers can stay on the plan they've got if they prefer it to our new offerings. (I've created the answer "I prefer my current plan over any of these options" to show this is an option, too.)
What other information do we need to include in this topic so you and other customers can make an informed decision about these different payment scenarios?
Cheers!
I've just placed a comment on the main topic re OnSite, which might make all the difference.
http://community.modwest.com/comment/1145
Aha, so that was the crucial piece of missing information!
It's true: If you are happy with your current plan, you can stay on it, but the new prepayment discounts won't be available for it.
Anyone still lacking relevant information that they need in order to give us feedback about these payment scenarios?
Um, yeah. I read all the comments and comments on the comments multiple times -- and maybe I'm just dense -- but I don't see anywhere any details about what we would be getting for our money.
The topic says "One Plan!", but it doesn't say what that plan is. How does it compare to the current cheap plan? How many GB of space? How many GB of traffic per month? How many mail boxes, etc.?
-- Will
@wilbert -- we're keeping this vague for right now, but it will include a lot more than the current Value plan.
Will makes a good point--#2 in the topic's description should be amended to say that the new plan will include a lot more resources than the current Value plan.
my comment http://community.modwest.com/comment/1139
"You can argue that the new plan is more generous, but that leaves some unfairly paying more for what they do not need and do not use."
When discussing discounts the carrot is the comparative price between what is paid now if you don't switch, and what is paid if you do.
While some existing customers will stick and other existing customers will twist, there's a risk that new customers looking for a switch from elsewhere will be driven to stick or look elsewhere by the wrong sort of carrot. However, it's swings and roundabouts, because elsewhere many will be paying through the nose to get the resources they need ... but attracting resource intensive users could turn out to be more costly than discounting those who use fewer. Just a thought, and yes, I have been drinking :)
Mblaue -- I've updated the topic description to be clear that this new plan will include substantially greater resources than our current Value Plan.
Thanks to all for the candid feedback, keep it coming.
Oh and also -- if we've filled in the blanks on "insufficient information", please Unvote for this answer, and add a new answer if needed.
To recap:
* this is not a forced change; you can stay on our existing plan if desired
* the resources associated with this new plan will be substantially greater than the current Value Plan.
We're still refining our plans, and everyone's feedback is helping. Thanks.
I can't unvote and select another as I still have insufficient information to make an informed decision on the other options :-\
Sorry squiggle, what's still missing?
By your own admission, you're still refining the plans, so it would be the refined plans ;) When do you expect to announce these?
Sorry, I mean it, one new plan.
At the moment I think it's worth the extra dollar not to enter into a two year commitment, which means sticking with the current starter on shared. Which has been my point all along.
The Next Q for the FAQ, is what happens when people who CAN STAY ON their existing plans outgrow them? Will a switch become mandatory or will they be able to upgrade within the existing plan scheme?
Oh, I see I was accidentally the top point earner for Oct. As I already have a T-Shirt and pub glass, will you please pass it down to the next in-line who doesn't. Thanks.
Are you sure Squiggle? You may already have a Modwest T-shirt, but only in ONE color. ;) Private message me if you decide you want a second, thanks.
I can't explain why, but I (incorrectly) assumed I wouldn't be eligible for a 2nd T-Shirt. This bodes well for multiple discounts :)) So, with that in mind I thought I'd initiate a random act of kindness, which I shall stick with unless there's a Grupthink one available?
Squiggle, sorry for the delay here. In response to your most recent points/questions about insufficient information:
1) We haven't provided enough info about the refined plans, when will we announce these?
--Well, we plan to refine future plans based on Modwest customer votes and discussions on this topic. So....there are no definitively refined plans at this point; though we are already building the infrastructure to introduce more flexibility into our payment system, all plan and payment ideas can be considered hypothetical until we hear more from Modwest customers.
2) What if someone wants to stay in the existing plan framework?
--Good question: If keeping the current plan framework is important, then we want to know. I've modified one of the available answers from "I prefer the current plan I'm on" to "I prefer the current plan offerings". If you prefer the current plan framework, please endorse this answer with your vote.
If there is any other information gaps we can fill, please let us know soon. ( I suspect we are going to have lots of community visitors to the topic this week and I want to make sure we've provided sufficient information.)
Thanks to all!
The topic doesn't read as-if this is all hypothetical.
In this hypothetical world, would I be able to add NEW HOSTING ACCOUNTS using the EXISTING model that I prefer at the same cost? Or would you only be "grandfathering" in existing hosting accounts?
How about new accounts for people I'm working with (customers)? Would I be able to use the existing model to bring them on as ModWest customers, or would they come on using the new model(s)?
@aheld, that wasn't our original intention, but it's why we posted this topic.
What I am hearing is that our existing 'Starter Plan' is really the right plan for some people: month-to-month, sub-$10, and relatively low resource capacity.
@squiggle, what isn't hypothetical is that we're changing things -- developing a system for long-term discounted prepayment, and creating what we think will be a more competitive plan. We posted our proposal here to get some feedback -- which we've gotten. Thank you! =)
From my point of view the best of all possible worlds is:
Entry level, Month to month, under $10
AND
a more feature rich version with deep discounts for 1 and 2 year prepayments.
The features of interest to me? In no particular order: no additional fees for:
more mail boxes
multiple databases
parking domains
subdomains
more bandwidth (perhaps averaged over a quarter rather than a month)
the same great high-touch support.