Is it just me or are the relationships in the broadband business between costs and prices getting increasingly bizarre.
I regularly check what Plusnet (and the competition) are offering new customers - so that I will know what to ask for when I get to the end of my current contract (October).
I just looked at Plusnet's current offer for 38M Fibre and found that for a 12 month contract I can have it for £24.99/month including line rental. However if I want to commit for 18 months it goes up to £28.50/month. The same £4 discount for a shorter contract also applies to the 78 & 17 Meg products.
I might be able to understand the strategy if the prices were fixed for the duration of the contract (i.e. they are factoring in an anticipated price rise in the way the gas/electricity suppliers do it), but as we know that is not the case - both prices are subject to change at 30 days notice.
What logic are the marketing people using. If they are after customers who want the lowest price, then lock them in for as long as possible. People who want flexibility are usually willing to pay for it.
As I said Bizarre!!
