Seriously? A mini-rush to save a bloody dime?
That said, it seems nearly suicidal for a registrar to be raising prices
at _all_ when there's enormous competition in the industry and so much
downward pricing preasure. Tucows service has been nice, but I think
we'll be moving on to a new registrar where we can save some real money.
A 30 to 50% difference in cost is something we can no longer ignore.
----- Original Message -----
From: "George Kirikos" <gkirikos@yahoo.com>
To: <discuss-list@opensrs.org>
Sent: Tuesday, November 23, 2004 1:05 PM
Subject: Re: wholesale pricing impacts
> Hello,
>
> Since the price increase doesn't take effect for a few days, and we're
> allowed to renew domains early, we should see a mini-rush of renewals
> on the day before the price increases by smart investors. It's kind of
> like when the TTC (Toronto public transit system) announces a price
> increase for tokens -- it makes sense to invest in them before the
> price increase.
>
> The size of the increase is 1%. If your opportunity costs (alternative
> similiar risk-free investments) are 2% per year (realistic under
> current interest rates in Canada/US), for example, then it takes 6
> months to earn 1% of your original investments. Thus, you should renew
> 6 months' worth of domains early (assuming simple linear interest, no
> compounding).
>
> Roughly speaking, mathematically, if your opportunity cost of funds is
> C (e.g. C = 0.02 for 2%, 0.05 for 5%, etc.), then you should renew:
>
> 0.01/C * years in advance.
>
> C = 1% ---> a full year of renewals in advance
> C = 2% ---> 1/2 years worth of renewals in advance
> C = 4% ---> 3 months worth of renewals in advance
>
> Since it's only a 1% price increase, TTC tokens might be the better
> investment (those often go up 4 or 5%!). ;)
>
> Sincerely,
>
> George Kirikos
> http://www.kirikos.com/
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