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  1. #1
    ABW Ambassador
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    I wanted to get some pricing opinions. Here is what I'm trying to work out. I've decided to offer incremental discounts to customers based on prepayment. For example, user signs up for 1 month and pays x dollars...prepay for 3 months and get 10% off...prepay 6 months and get 20% discount....prepay 1 year and get 30% discount....On our front page, I use several graphics that show a few details of a plan and that graphic leads to more info...Is it right to use a 'As low as' on those graphics based on the prepaid 1 year 30% discount. I could say that our Plan 1 is $14.95 a month, or I could say our Plan 1 starts as low as $10.45 a month. I see merchants doing this all of the time...the goal is to sell product, but I don't want to be misleading in our prices. There is a comparison chart that shows all plans side by side (and each page of Plan info will show it)...therefore I wouldn't be hiding any information...do you guys see anything wrong or unethical advertising the lower price...

  2. #2
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    I resell for a couple of companies. One of the hosting companies I deal gives similar discounts. What they do is put "As low as $9.95*" then down at the bottom of the page (in tiny print of course) it says "*requires multi-year signup."

    AFAIK this is a standard practice - using the lower price with "as low as". It automatically implies that there are certain conditions.

  3. #3
    ABW Veteran Student Heyder's Avatar
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    When I see "as low as" or "starting at" I always assume this means there are options and I never feel mislead.

    What bugs me is when the options are not displayed right away on the first page view. It is very annoying to get through ten pages of entering my name, address and telephone number and then finding out that what I thought I was getting costs more than I had been told.

  4. #4
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    Thanks for the replies, guys. I too have always assumed that when I see 'As low as' or 'Starting At' there were conditions to it. I would also think that *most* of the clients that use our services were knowledgable enough to know...I'm used to dealing with things like this, so I just wanted some other opinions (as many of you know we tend to see things differently than the general public [img]/infopop/emoticons/icon_smile.gif[/img])

  5. #5
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    >prepay 6 months and get 20% discount....prepay 1 year and get 30% discount

    If those are real numbers, it would be cheaper for them to get 6 months twice than one year once (like I said, "if").

  6. #6
    ABW Veteran Student Heyder's Avatar
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    The percents wouldn't come out short I think he just posted numbers for the sake of discussion.

    [ 04-24-2002: Message edited by: Heyder ]

  7. #7
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    Like I said, "IF".

  8. #8
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    Actually, those are the numbers, however, a 30% discount on 1 year is still cheaper then 2 6 month discounts. For example

    Monthly -14.95 (monthly)
    Quarterly 14.95 x 3 = 44.85 -10% (4.485) = 40.365 (rounded to 40.37)

    Bi-Annual 14.95 x 6 = 89.70 -20% (17.94) =
    71.76

    Yearly 14.95 x 12 = 179.40 -30% (53.82) =
    125.58

    If the customer went for the 2 Bi-Annual plans, his cost would be 143.52
    If he went annual, it would be 125.58

    Perhaps I'm tired or something, but you can double check my numbers.

  9. #9
    ABW Veteran Student Heyder's Avatar
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    No Tom you are exactly right, always have been.

  10. #10
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    Thanks Heyder...had me worried...With 6 plans and each plan having monthly, quarterly, bi-annual, and yearly, there was A LOT of number crunching...then I had to add in the discount rate for ABW (will be labeled Reseller) with just as many numbers...thought maybe I was just a little too tired [img]/infopop/emoticons/icon_smile.gif[/img]

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