Gtjojo189 wrote:
Servers run on electricity and market rates per KWH have risen significantly in the past year. I have no clue if they have their own data center or not but if they have a negotiated lease with a colocation data center company, their rate could have gone up significantly and they decided to immediately pass it on.
I think it depends what you’re running it off of. Our electric hasn’t gone up noticeably but our NG prices have. I doubt it’s that.
My assumption is the math hasn’t worked for awhile they were banking on user growth, but when that didn’t occur they had to switch the model to try increased pricing to cover costs.
All of that is irrelevant though this isn’t a pricing problem. If you don’t raise prices for 10 years and then decide you need to raise them most users won’t have a problem. If you decide to raise prices with no transparency, then when called out keep the no transparency, then apologize and also not give any transparency. This is where you end up.
The more and more I listen to executives talk the more and more I feel they should just shut up and let an average person in their company explain what they are doing. Your average employee is going to go yeah guys sorry, we need to keep Strava around and we have to raise prices to do it. Here is the price increases, it’s the best logic we can come up with and hopefully we won’t need to do it again anytime soon. If they said that and published a price list with some resemblance of logic they would have zero issues.
We had one of the executives in our company when asked about pay increases due to inflation, go “well we didn’t decrease salaries during the pandemic and we can’t just raise them for inflation. I about put my head through my desk. There were 100 different ways to say that which werent alienating to 95 percent of employees and have the same answer.