Gandi will apply Verisign's 3rd price increase on July 1st 2010
By Ryan on Monday 31 May 2010, 15:04 - Gandi - Permalink
Verisign, the registry for the extremely popular extensions (.com, .net), unilaterally decided to raise domain registration AND renewal prices for the third time in four years. Gandi was informed about this decision on December 17th 2009.
A quick flashback: Verisign and ICANN (basically the Trustee Authority) for the technical management of the internet) signed an agreement towards the end of November 2006 stipulating that the former has the right to increase rates by 7% for .com and 10% for .net every year until the end of 2012.
Gandi absorbed nearly all the cost of the first two increases (2007 and 2008) for historic, commercial, and economic reasons. Since December 17th of last year, we have been looking for a solution to avoid having to pass on this unfortunate price increase to our customers.
We should mention right away that we were unable to do so. We have nonetheless tried to provide you with an offer that is attractive and realistic, that takes into consideration your expectations, our values, and market forces.
Beginning July 1st, only .com renewals (in euros only) will be affected by this increase. .Com renewal prices (in euros, excluding VAT) will therefore be:- 12.50 euros excluding VAT under A rates, (14.95 euros incl. VAT)
- 11.40 euros excluding VAT under B rates,
- 9.50 euros excluding VAT under C rates,
- 7.90 euros excluding VAT under D rates,
- 6.30 euros excluding VAT under E rates
We will not increase the price of .com and .net creations, nor the price of renewing .net domains.
Our idea is simple, all customers, whether new or loyal customers that have been with us for the past 10 years, may continue to benefit from the same creation prices. You are our greatest advocates and understand the quality of our service, we appreciate the trust you have put in us. We understand you may choose to accept this 7% price increase when renewing your domain name. Or not.
For 6 months we tried to protect our customers from the price increases, however we can no longer sit back and do nothing, as this would put us in a very delicate position (especially as on top of this there is the current unfavourable euro/dollar exchange rate). We do not want to sell domains under cost or lie to you about the real price of our services unlike some providers. As you know that is just not our style.
The majority of registrars throughout the world have already raised these rates (creation and renewals) for both extensions, or will soon be doing so. At Gandi, we will have a look at the end of the year to see if we can continue to absorb the price increase for creations and the .net.
If you are going to renew your domain name, it may be a good idea to do so before July 1st, in order to avoid the additional cost.













Comments
GANDI wrote:
"Our idea is simple, all customers... may continue to benefit from the same creation prices."
A domain is registered once and renewed many times and you know that. Increasing the renewal price alone is a move more befitting other registrars who advertise low up-front costs but sting with ongoing costs.
It would be more honest to increase the prices across the board, creations and renewals, and not try to pretend that you're doing us a favour by charging us more each year for the domains we already have.
@Bunting: We are totally honest and transparent in what we have chosen to do: Verisign is increasing its prices by 7% and but have chosen to raise ours by only 1% to 4%, and in a way that we hope will allow us to not be obliged to raise them again when Verisign's next allowed increase will occur.
I totally understand what you are saying however. If we were to raise prices across the board, as you say, so that we charge more for both creations and renewals, we would then encounter a lower volume of sales in new creations - which in turn put us in an even more delicate position for Verisign's next price increase, where we would have to raise rates even more.
If the current pricing scheme does not work however (we are trying as hard as possible to avoid raising rates!) we will indeed need to raise creation rates.
For me and my business, as well as my clients for whom I create and manage domain names, I no longer require GANDI to compete on the basis of price. Over the last ten years, GANDI has shown itself to be an ethical, innovative, extremely hardworking organization. It is evident in everything that you do. I've watched with great pride as GANDI has matured in its business and offerings, adding improvements to its web interface, DNS management, mail forwarding, site creation, educating users... the list goes on and on.
Speaking only for myself, I don't begrudge ANY price increase that GANDI must pass on to its users - in fact I expect that. The costs that GANDI charges are, frankly, trivial - and I can't remember the last time there was a price increase, even as the value of American currency has tanked. GANDI should not feel pressure to protect its customers from its costs, as far as I'm concerned.
More importantly, I have come to know that I can TRUST GANDI. In the business world, that's priceless. I'm proud to do business with you.
I have nothing but praise for GANDI as an organization, and for your remarkable employees and contributors. It's a shame that virtually no American companies have stepped up the way you have. But, hey, that's what free competition is all about.
Roger Bond
Portland Computer Guys, LLC
P.S. Sorry about the "freedom fries" thing. I think we're back to calling them "French Fries" now...
I find myself in the opposite situation from SquareWave. I have been with Gandi for many years and continue to stay with it due to the excellent service and trust. However, with my growing number of domain names it is getting to the point where I have to consider moving. When you have 1 or 2 domain names, paying $5 a year or paying $15 a year is not a big difference. With 20 domains, it is. Of course, I will probably stay with Gandi anyways, but it's just getting more and more difficult to justify it to myself.
The large difference between E and A rates, make me a lot less happy customer. Such price difference for a fully automated service (without any human intervention), does not feel right. I would love to receive E rates and pay for any human intervention necessary (in 15 minute increments) up front.
Gandi was recommended to me over 10 years ago by one of my business associates. At one stage we were moving domains away as our automated system required we use OPENSRS. Since we dont allow our customers to register their domains themselves I can now say that most of my domains have been moved back to GANDI. I have about 9 more domains to move from OPENSRS back to GANDI and this will be done when the renewals are coming up. I want to thank GANDI for all their help and hard work and for the excellent rates they have given me for my domains registrations/renewals. Keep up the good work guys.
I've been with Gandi for over 10 years and I maintain 20-30 domains at any given time. I simply wouldn't register or renew through any other company. So please, do what you need to do to keep Gandi running for another 10 years
Thanks Gandi for the honesty.
Your service is exceptional and there's really no bull$$it. Your prices are really quite reasonable when I consider how much time I waste wading through the bull at those other places.
Keep up the good work!
I have a lot of domains at Gandi and the highe5 cost will mean that I am going to get rid of most of them and only keep a few. Instead. my use of sub domains will replace many of them. The result will be that my costs will be very much reduced, instead of increased. I had already started to reduce, for practical reasons, but can probably reduce much more due to the price hikes.
In the last year, I moved my fifteen domains from GoDaddy to Gandi at about a 50% cost increase.... and it has been worth every penny. Gandi's web tools are a breath of fresh air after navigating GoDaddy's... even after using GoDaddy for several years, it still takes me awhile to find some of the tools I want. *AND* GoDaddy can't let me buy anything without trying to sell me a bunch of stuff I don't need. The no-nonsense renewal process at Gandi simply makes me a happier person.
And I no longer have to be ashamed about giving my money to a business that takes pride in being "just a little bit inappropriate." That's actually what drove me to leave GoDaddy... I could put up with the increasingly annoying tools and constant selling. The last straw was disgust at the business and marketing tactics.
I expect Gandi to pass on ICANN price increases to me. GoDaddy did (their prices basically doubled in the years I was with them)... they wouldn't have dreamed of absorbing the cost of ICANN increases. And I don't expect Gandi to either. The cost of doing business goes up, I expect my registrar to do what's necessary to maintain a healthy business so they can continue to provide me with the excellence I've come to rely on.
Dear Sir,
we are the India base manufacturing company, and we tried to get the domain name metalpower.com which is registered by your company, we would like to purchase the same domain name. kindly suggest us the best possible way to obtain www.metalpower.com
Thanks
Nagendra
I find the complaints about rising fees amusing considering there was a time when we had no choice in registrar whatsoever and the fees were in the 100's (as opposed 10's) of dollars.
For what it's worth, the Gandi team has my continued business, the utmost respect and my complete support.
Price increases are to be expected with the passage of time. I have always used Gandi and will continue to do so, knowing that they offer the best services and support in the industry. I recommend Gandi to everyone who asks...and even to those who don't.
Perfect to Gandi, Shame to the ICANN
I don't have a large list of domains so this will not affect me greatly, and I understand the concern for those who have many domains to maintain. But I simply wouldn't trust any other company. I recommend Gandi every time that domains come up in conversation.