[registrars] Regarding transition to market forces
Ross Rader
ross at tucows.com
Thu Nov 24 16:07:40 UTC 2005
There's a difference between cost and price. I doubt that the actual
cost of your latte was actually less than the actual cost of a domain
name. At a general level, increased costs eventually lead to higher
prices - decreased costs, do not always lead to higher prices.
Further *we*, collectively, do not "allow" anything as it relates to the
price of domain names. Prices are, and should be, set by each individual
registrar. NSI and Starbucks have chosen a different model than Godaddy
and Dunkin' Donuts, that's all (with apologies to my esteemed colleagues
from NSI and Godaddy).
Tom C wrote:
> My question is, at what point do we stop allowing market forces to
> continue driving prices down? Let's be honest, consumers are not
> demanding lower prices. It is Registrars, and web hosts, who have made
> the decision to compete on price, rather than on service. With current
> prices at $1.99, $2.99, $5.99 and $6.49, I believe we are doing far more
> damage to our industry with lower pricing than with higher.
>
> Market forces do not always lead to lower prices. The auto industry,
> home prices, gas prices, real estate and coffee are just a few
> examples. My grande double shot, extra hot, vanilla latte at Starbucks
> cost more this morning than a domain name at some Registrars, and it
> wasn't good for a year.
>
> -Tom
>
> John Berryhill wrote:
>
>>> I am not aware of market forces leading to an increase. I certainly
>>> haven't seen that amongst registrars where market forces do apply.
>>>
>>
>> ...which, Bruce, is precisely what is stated in the Q&A 1.4: "Prices have
>> dropped from US$50 per year for a .COM domain name to as low as under
>> US$10
>> since ICANN introduced registry and registrar competition in 1999"
>>
>> Uhmmm, gee, so in the competitive registrar market, prices dropped by a
>> factor of five, but "market forces" dictate a 7% per year increase
>> henceforth at the registry? And this is despite the fact that .com is a
>> "thin" registry. So here our anonymous ICANNite is basically saying that
>> the registrars maintain more data and provide more customer service
>> than the
>> registry on margins of less than four dollars.
>>
>> This is not a "Q&A", this is a case study in dissociative identity
>> disorder.
>> One shudders to imagine the childhood trauma responsible for this
>> manifestation, but the author is in need of professional help before the
>> apparent inner tension leads to physical problems.
>>
>> These are words intended to obfuscate, not illuminate.
>>
>>
>>
>>
>>
>
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