USD Value plummeting is affecting badly
Due to multicurrency being a hindsight in WHMCS and existing service prices not being tied to main currency some people are getting services for over 30% less than expected.
In worst cases this means that service is rendered significantly under cost.
This also causes at minimum to profit margins to drop significantly. a 1% drop in price affects way more than the 1%, depending upon the profit margin. It also means that we cannot lower the price in general because other people have to pay for other people's services, which is not right!
Unfortunately, we have to take action on this, and update service prices for some people paying using USD. This has been a pre-existing condition now for almost an year, but we have so far REFUSED to take action on it, but now the differences can be far too great.
For the most part change will be inflicted only on upcoming invoice, which is not generated yet. On more extreme cases we may change already existing invoice to reflect the USD value fluctuation if due date is atleast 4 days away. On the most extreme cases we may ask customer to pay some of the difference, to allow us to even breakeven for their service. If that extra payment is asked, it is not mandatory and completely up to the customer to choose. Retroactive price increase is not in any fashion ethical, thus it is optional.
If you do not pay in USD, but you are using EUR or AUD this does not affect you at all in any fashion. AUD value has been quite stable over the year with only few % change. EUR is our main currency.
So to put it simply if you are paying in USD:
- Your next invoice might be for different sum, and if you have a subscription it may need updating
- If you have an open invoice which is due in 4 or more days, it might be changed and a reminder sent about it.
- If you renewed within the past month, and the difference was on the extreme side you might be asked to make an voluntary extra payment.
We are regretting having to take this action, but for the greater good we must do this.
EDIT: Only accounts with significant difference was changed, small changes (few %) were not put in effect. If you think your rate should be rechecked, please open a ticket and we will check it. A very small percentage of users got even their prices lowered due to general price decrease/ordered when USD peaked low last summer.
Sorry for the inconvenience caused!
-Aleksi
Sunday, April 10, 2011
