Quote:
Originally Posted by Broadbandings
You can understand the confusion. Rather than charging 38GBP for XXL on its' own VM charge 45GBP then discount 7GBP just for the hell of it to take the price down to 38 which is frankly bizarre.
You do have to wonder if someone was high when they were doing the pricing and just picked random numbers out of the air or threw darts at a board.
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Having been in business myself there is always an upfront and fall back logic behind apparently ridiculous decisions.
The fact that they are discounting implies that the higher price is the price they desire but for however long they choose they will discount. At some point in time they can increase prices, but avoid touching the headline price, by clawing back part of the discount. They would have the argument that the headline price is unaltered but the discount (which they graciously gave away) has been reduced.
I had this discussion with sales when they wanted to trim my retention discount over and above the 20\50Meg differential. Neither of us got a deal because my stance was that a new contract was worth more to them than a small claw back and unless recognised within price they would get 100% of nothing.
They IMO have given themselves room for manoeuvre and at some point will implement that option. If en bloc VM customers were to be canny buyers then nobody would buy into 50Meg and price would have to fall. If on the other hand they buy in droves then STM and price rises will follow whenever a critical mass of such customers is acquired.