1&1 unfair prices to existing customers

  Simon_P 20:00 16 Sep 04
Locked

I have had no problems with 1&1 their customer service/ response time has always been good, less than 12 hours in some cases, but do feel a little annoyed about their pricing structure. Although it is good value for money if you are a new customer it is better.

I wrote

I have noticed that the specifications and prices for your MS Home package have changed as below.

Please could you tell me it this applies to existing customers?
600 MB web space
100 POP3 accounts
10 GB/month bandwidth
3 Virus Scans included
Microsoft Windows Powered
£4.99 Per month ( I pay £5.99)

1&1 replied (within 12 hours)
Thank you for your email

Unfortunately these new tariffs only apply to new customers, or existing customers that start up new contracts.

If you have any further questions do not hesitate to contact us.


Billing Department
1&1 Internet Ltd.

I wrote

Thank you for your e-mail.

Could you please clarify if the enhanced webspace of 600MB and 10GB monthly
bandwidth also only apply to new customers?

I do feel that it is unfair that new customers get better rates than your
loyal customers.

Fair enough it is only £12 a year difference, but in my opinion it is more
about the principle that the actual cost.

1&1 replied (within 24 hours)
Thank you for contacting us.

Sorry for late reply, old customers do get same amount of the webspace and the bandwidth I have just had a look at your account and see that your webspace is being upgraded to 600mb at the moment. You will not lose out on anything that is provided to our new customers you will be provided with same features as well as new customers.

If you have any further questions do not hesitate to contact us.

I wrote

Thank you clarifying that point for me.

I would understand that a cheaper rate would apply as an introductory
period, but as this appears to be the rate that all new customers pay
indefinitely it seems to be a little unfair.

This issue has been discussed on certain websites concerning some companies
that offer very cheep introductory rates for a set
period, to new customers, but existing customers have to pay a premium for
upgrades. I doubt that I am
the only one that has raised an issue with it.

My account alone is hardly likely to make much of an impact to a company
that is so big, (and claims to be the best) but I wanted to give you my
views on the way I feel that your pricing structure fails existing loyal
customers. Even if it is just a minority feedback issue.

I have had very good service form 1&1 since I joined, but I feel a little
disgruntled that a price drop doesn't extend to existing customers, as I
understand it the costs involved with my webspace and account are no
different to that of a new customer.

1&1

So far silence

  spuds 23:57 16 Sep 04

The price of loyalty as no thinking with big business's nowadays. I subscribe to a number of monthly magazines, and the difference between new and old customers subscription prices, are more beneficial to new subscribers in most cases.A bit like insurance cover, with the 15%-20% or more introdutory offers.

  GANDALF <|:-)> 00:19 17 Sep 04

Price drops are to entice new customers.

G

  Simon_P 00:50 17 Sep 04

It is the price that will run indefinitely, or until reviewed

If it was an introductory offer there would be no issue as this is common practice.

I am not really concerned about a mere £12 a year, I wouldn’t even notice it, it is the principle.

There is a difference between a price cut and an intro offer.

  Jarvo 07:14 17 Sep 04

You may find at the end of the years contract the price will drop when you pay your next years hosting, As the hosting is paid for a year in advance and I would assume buy credit card with most people it would be difficult and expensive for 1&1 to refund thousands of customers.

I suppose its a bit like buying a suit and seeing it reduced in the shop window the next week sometimes happens. I too am paying and extra £12 a year but Its the price I accepted at the start of my years contract and will have to accept until next year.

I can see your point but working in retail and knowing how much the credit card companies charge retailers for transactions and the administrative nightmare it would cause to refund all the customers, I am quite happy for 1&1 to reinvest my £12 in improving their already excellent service.

disappointing but like seeing your new suit reduced in the shop window, you just have to walk on by (Do I feel a song coming on here ;-) and remember you bought it because it was a good product at a fair price at the time of purchase.

Regards

Jarvo

  Simon_P 18:55 17 Sep 04

That is a good point that it may be reviewed at the end of the 12 month period.

I wasn’t after a refund, I just enquired if it was the same for all, like you have said I to was happy with the price that I had paid, and that goes for anything that I pay for, if I am happy with that price at the time I just except that prices do drop on consumer products as new ones are released, digital cameras being a fine example of that.

I agree that 1&1 do give an excellent service and I am very happy with the hosting that I have from them.

The point that I was making is that customer loyalty doesn’t always count in big business.

  Forum Editor 18:57 17 Sep 04

for a year's service there would be an agreed charge. If the company subsequently offered new customers the same service for a reduced charge I would not expect (or be entitled to) a reduction on the charge for my existing contract. When it came time to renew however I would certainly look forward to paying the reduced charge for the next year.

As far as I know, 1&1 do not have a fixed contract period (I should know, because I'm a customer of theirs, but I forget) and you can opt out at any time.

  Simon_P 01:40 18 Sep 04

As far as I aware you can cancel your contract at any time (probably 30 days notice)

My contract (annual fee) has just been paid and I am not certain if they changed the prices before or after the renewal date as I was away.

I know this may seem like a rant, but my point was to highlight that loyalty may not count for much.

As they say I quiet child gets no sweeties.

And if all I have achieved by this is to let people know and also give 1&1 some feedback then they may consider it in future changes, I am but a tiny cog in an enormous wheel, and like to share my opinion. Maybe it would be wise of them to advise their customers in their newsletter of these sort of changes.

I am however very happy with the service that 1&1 provide me and the price that I pay.

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