RE: [registrars] Regarding transition to market forces

[Tim Ruiz <tim@xxxxxxxxxxx>]

Tom, I know we have been using both terms interchangeably, but this is
really about costs, not price.<BR><BR>Tim Ruiz<BR>VP, Domain
Services<BR>The Go Daddy Group, Inc.<BR>Office: 319-294-3940<BR>Fax:
480-247-4516<BR><A
href="mailto:tim@xxxxxxxxxxx";>tim@xxxxxxxxxxx</A><BR><BR><BR>
<BLOCKQUOTE style="PADDING-LEFT: 8px; MARGIN-LEFT: 8px; BORDER-LEFT:
blue 2px solid"><BR>-------- Original Message --------<BR>Subject: Re:
[registrars] Regarding transition to market forces<BR>From: Tom C
&lt;tomc@xxxxxxxxxxxx&gt;<BR>Date: Thu, November 24, 2005 9:48
am<BR>To: John Berryhill &lt;john@xxxxxxxxxxxxxxxxx&gt;<BR>Cc:
registrars@xxxxxxxxxxxxxx<BR><BR>My question is, at what point do we
stop allowing market forces to <BR>continue driving prices down? Let's
be honest, consumers are not <BR>demanding &nbsp;lower prices. &nbsp;It
is Registrars, and web hosts, who have made <BR>the decision to compete
on price, rather than on service. With current <BR>prices at $1.99,
$2.99, $5.99 and $6.49, I believe we are doing far more <BR>damage to
our industry with lower pricing than with higher.<BR><BR>Market forces
do not always lead to lower prices. &nbsp;The auto industry, <BR>home
prices, gas prices, real estate and coffee are just a few <BR>examples.
&nbsp;My grande double shot, extra hot, vanilla latte at Starbucks
<BR>cost more this morning than a domain name at some Registrars, and
it <BR>wasn't good for a year.<BR><BR>-Tom<BR><BR>John Berryhill
wrote:<BR><BR>&gt;&gt;I am not aware of market forces leading to an
increase. &nbsp;I certainly<BR>&gt;&gt;haven't seen that amongst
registrars where market forces do apply.<BR>&gt;&gt; &nbsp;
&nbsp;<BR>&gt;&gt;<BR>&gt;<BR>&gt;...which, Bruce, is precisely what is
stated in the Q&amp;A 1.4: "Prices have<BR>&gt;dropped from US$50 per
year for a .COM domain name to as low as under US$10<BR>&gt;since ICANN
introduced registry and registrar competition in
1999"<BR>&gt;<BR>&gt;Uhmmm, gee, so in the competitive registrar
market, prices dropped by a<BR>&gt;factor of five, but "market forces"
dictate a 7% per year increase<BR>&gt;henceforth at the registry?
&nbsp;And this is despite the fact that .com is a<BR>&gt;"thin"
registry. &nbsp;So here our anonymous ICANNite is basically saying
that<BR>&gt;the registrars maintain more data and provide more customer
service than the<BR>&gt;registry on margins of less than four
dollars.<BR>&gt;<BR>&gt;This is not a "Q&amp;A", this is a case study
in dissociative identity disorder.<BR>&gt;One shudders to imagine the
childhood trauma responsible for this<BR>&gt;manifestation, but the
author is in need of professional help before the<BR>&gt;apparent inner
tension leads to physical problems.<BR>&gt;<BR>&gt;These are words
intended to obfuscate, not illuminate.<BR>&gt;<BR>&gt;<BR>&gt;<BR>&gt;
&nbsp;<BR>&gt; </BLOCKQUOTE>