Wednesday 26 October 2011

How do I put a positive spin on this, from a business perspective?

I have an internet service where I offer a free website and unlimited audio hosting as a perk for signing up. However, I realized too late that offering a free website with unlimited audio hosting is not the best choice economically, as when storage space for the audio goes up, the money needed to maintain the space also goes up. Some people have been customers for up to 3 years, some for a year or less.



So, my question is, how do I let members know of price changes without them going into fits of rage about it?



Even better, how do I put a positive spin in this so I end up looking good instead of bad, both to the customer and to my employer?



Thank you!
How do I put a positive spin on this, from a business perspective?
it was free wasn't it? what are they going to do if you require a payment...leave? So what, you're not getting money from them anyway. No loss on your part.



Simply tell them that due to the explosive growth of your service and the rising costs associated with maintaining the existing high quality of your system, that you will no longer be able to offer free websites with unlimited audio hosting. Maybe give existing customers a one-time price discount offer. Let them know that as of X date (something like within 60 days), your service will no longer be free.
How do I put a positive spin on this, from a business perspective?
Take the blame. Come clean about how you under-estimated costs and how it would be unsustainable to continue in this manner. Show numbers if possible. Stress the good service you had provided for the past few years FOC without imposing any obligations on members. Apologize and ask for understanding.