Comment by jm4
9 days ago
I use a cheapo VPS there to host some git repositories. It's going from $6.99/mo to $20.49. Who in their right mind would pay that for a 2 core/2 GB VPS? It makes me wonder if they are trying to shed some unwanted customers.
You continue to pay the old price as long as you don't change your plan!
That's good to know. Still, I'm stuck on that little instance. Scaling it means an exorbitant price increase. I would just leave for another provider at that point - and maybe that's what they're going for. They're not kicking people out immediately but making it uncomfortable to stay.
I would hypothesize that there's a lot more customer churn at the lower price points than there is in the higher tiers and when you get into dedicated servers. You're dealing with people who spin up a cheap VPS, mess around with it for a while and then delete it. Or maybe the kinds of customers whose payment card expires and they don't bother to update it because they're not using that $7 VPS for that little pet project they forgot about. Payments fail and then the VPS runs for a few more weeks before they finally have to delete it due to non-payment.
Higher prices filter out the unserious people who are a higher risk for churn. What they're left with is bigger customers with bigger footprints who lock in long term rates.
Of course, this is pure speculation on my part.