Black Friday deals hurt small hosts

ronwit

Member OP

Budget King

Joined:: Jun 2024
Posts:: 122
From:: Osaka, Japan

2y ago

7 #1

Actually~ I run tiny VPS shop in Osaka and basically every November I lose money~ (´・ω・｀) customers who pay $3/month suddenly want $12/year price forever, then churn when I cant match next year. Actually this is not sustainable~

Big guys like Contabo can absorb loss-leader. I cannot. My friend who runs RackNerd in Fukuoka same problem. Actually we thinking to skip Black Friday this year but scared to be invisible~

What do you guys think? Basically am I wrong here~?

instant noodles, instant deploys

srelet

Member

Joined:: Jul 2024
Posts:: 135
From:: San Francisco, USA

2y ago

#2

Transparency: we ran loss-leaders at my last gig. Error budget on customer acquisition cost went negative by February. Churn rate 340% annualized — they came back every November for new "first year" deal. Blameless postmortem said we trained them to behave this way. Small hosts can't absorb that re-education cycle.

Izmir

Member

Joined:: Jun 2024
Posts:: 69
From:: Izmir, Turkey

2y ago · edited

#3

I run 8 node in Izmir and every Black Friday I lose money very very bad... customers not staying, just jumping host to host. Actually I tought about raising renewal price but tten they leave faster. No win situation my friend.

Maybe we skip together this year my friend!

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