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VentraIP loss leading on .com.au prices

Discussion in 'VentraIP.com.au' started by Sim, May 3, 2017.

  1. Sim

    Sim Membership: Community

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    VentraIP are currently selling new .com.au registrations for $9.95 per year ($19.90 for 2 years) for the month of May, which is less than my wholesale buy price through Synergy Wholesale.

    Would be nice if they could at least match their wholesale prices to what they are selling retail.

    (*goes to look at the pricing on the Melbourne IT page to reassure himself that he's still on a good thing with SW*)
     
    DomainNames, Cherie Quin and Scott.L like this.
  2. Scott.L

    Scott.L Membership: Trader

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    auDA Member:
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    Wow, that sounds very unfair and anti-competitive to do that to their resellers.
     
  3. eBranding.com.au

    eBranding.com.au Membership: VIP

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    auDA Member:
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    It's a limited time promotion:
    https://ventraip.com.au/megamaymonth17/

    They're also giving away a $20K prize.

    As a reseller, you're also able to run promotions to attract new customers, encourage increased order size, or reward customer loyalty etc.

    It's also worth pointing out that VentraIP and Synergy Wholesale are separate business entities.
     
  4. Sim

    Sim Membership: Community

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    At the end of the day, we're talking substantially less than a dollar difference in price - I'm not overly concerned since I'm not actually trying to compete with VentraIP for domain business.

    I charge my clients substantially more than Ventra's standard pricing and instruct my clients to use Ventra if they don't need my value-added services and would rather DIY.
     
  5. Mick

    Mick Membership: Community

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    VentraIP pay the same price as all other resellers, meaning they're absorbing the cost to offering this promotion. :)
     
    eBranding.com.au likes this.
  6. VentraIP

    VentraIP Membership: VIP

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    Hi Sim,

    VentraIP Australia is an accredited registrar in its own right, so technically we could be buying .au domain names directly without Synergy Wholesale in the middle.

    However, as is known we actually buy domains through Synergy Wholesale and I can assure you that we pay the exact same price as everybody else. The loss is taken on our side and is factored in to the promotion.

    Everything is above board - promise. :)
     
  7. Scott.L

    Scott.L Membership: Trader

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    Fair enough. But, why? Why buy from SW? or, Am i having one of those moments when that dumb kid claps first and no one else joins in?

    .
     
  8. VentraIP

    VentraIP Membership: VIP

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    LOL - definitely not. :)

    It's because of the way we originally set everything up. Originally VentraIP Australia was the accredited registrar under the VentraIP Wholesale banner, which we changed about 3 years later because feedback from wholesale customers was that they didn't want to be seen using what is a retail brand.

    The problem was that we set ourselves up as a wholesale customer inside of that system so when we created the Synergy Wholesale brand it kept the management system that we used for our own domains and it was going to be a massive undertaking to split them up and maintain two separate systems so we just kept it the way it was.

    When we first set up as a registrar we never really thought that we would be a serious wholesale player because at the time DistributeIT had a great reputation and seemingly had the market wrapped with TPP Wholesale, so having a retail brand with a pseudo wholesale division was all we ever envisioned. But when DIT had their unfortunate events it only left one real white label wholesale provider in the market which is why we opted to make the change to Synergy Wholesale.

    It's also important to note that they have always been operated as two separate companies. We do share some resources where it makes sense, but the majority of what we do is completely separate, even to the point where VentraIP Australia pays the same costs for racks, SMS message, and bandwidth as every other wholesale customer.

    I hope that clears things up for you.
     
  9. Sim

    Sim Membership: Community

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    Ahh - I wasn't sure that this was the case and your most recent post explains where my confusion comes from I think - I was aware that VentraIP predates Synergy Wholesale, so I was working on the assumption that you weren't necessarily purchasing through SW.

    If you are indeed purchasing at the same price as everyone else, I'm cool with that.

    And like I said - at the end of the day, we're talking about only a fraction of a dollar difference in price.

    Hope the promotion goes well for you!
     
    DomainNames and eBranding.com.au like this.
  10. Scott.L

    Scott.L Membership: Trader

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    O, structural seperation. Thanks VP, if only all organisations were as transparent and responsive as yours. ;)
     
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  11. johno69

    johno69 Membership: VIP

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    This reminds me of the time I asked SW why they were 20% more expensive than VIP with .TV. I got the same info, then 5 mins later VIP updated their price somewhat higher. :)
     
  12. DomainNames

    DomainNames Membership: Community

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    Dear VentraIP,

    IF wholesale au prices where reduced by $4 a year would you pass on some of this?

    With Ausregistry gone and not taking their massive profits out of the Australia and auDA running the wholesale registry with the latest technology and some government support they will be able to do this.
    So the wholesale price for .au will be $3 once Ausregistry is gone and if auDA do it right.

    From a good supply member. Please support such innovation. To make the .au more attractive and competitve against the other now available 3000 global extensions
     
  13. Mick

    Mick Membership: Community

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    Of course! we'd pass on any savings to our resellers if the price was to drop. :)
     
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  14. DomainNames

    DomainNames Membership: Community

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    Mick that is great news and one reason why dntraders like you and Ventraip / Synergy wholesale

    Maybe it is time to vote off Ausregistry from the auDA board so Supply registrars and resellers really get a say in the wholesale pricing also.

    Some on the auDA board think the wholesale price should not go down... why not... what is their own financial benefit?

    It's pretty hard to justify $10 million of Australian domain name .au registration / renewal/ COR profits going offshore to a 100% foreign owner of wholesale registry contractor every year...

    Both supply members and demand members deserve the decrease.

    $3 AUD is a fair and reasonable possible wholesale .au price. Everyone can see m ASAP more than that is just plain profiteering

    With Ausregistry/ Neustar Inc / Golden Gate foreign owned wholesale registry gone this is a win for Australian resellers, registrars and consumers.

    auDA will make the same money and remain profitable ( they are in fact a "not for profit". They should be happy to even remain in their role at all. They DO make a healthy profit.. so much so they have $10 million in the bank in profits and for many years they gave money away via the foundation and grants and overpriced non tendered suppliers...

    I can register over 400 of the new domain name extensions for $1.99 USD each. This is really what Australia is up against... auDA needs to know they must compete for the domain name registrant consumers...
    .xyz domains are now just 99 cents Retail from good registrars!
     
  15. findtim

    findtim Membership: VIP

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    i'm interested why "loss leading" is a problem? just look at your woolies brochure every week !
    i was with woolies in the 80's and our coke price was always FAR lower then wholesale from coke, WHY? because it bought customers in to buy our meat/deli/fruit which were high GP items.

    its a standard business practice imo.

    just look at petrol prices EACH DAY, the other day ( i have 3 shells within 2 klms of me) the petrol was 139ltr in the morning INBOUND, it was $115ltr around the corner OUTBOUND. it tokk me 2 minutes to drive past the 1st to get to the 2nd and both are on my way home from kids school drop off.

    asking if you'd drop $4 in wholesale reduced is an obvious answer, they would just keep the promo alive of course.

    mick has kindly explained their business structure but i think dan murphys is owned by woolies as is BWS ? and when i go to my woolies they are NEXT to each other ! WHY? so liquorland don't take the empty shop ! its all just business.

    tim
     
  16. DomainNames

    DomainNames Membership: Community

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    Tim what are you saying?

    With Ausregistry/ Neustar / Golden Gate foreign owners gone and auDA running the wholesale registry can you propose to the auDA Board and auDA now as the Demand Class representative on the auDA Board for the wholesale price to come dow to $3?

    This is really why we voted you in.. to act on issues and also out forward suggestions for the benefit of the .au namespace.

    Nobody puts baby in the corner.. Get up and start dancing.. Be the star.. Speak Up like you did before
     
  17. findtim

    findtim Membership: VIP

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    i'm saying that "loss leading" is a geniune business marketing tactic in any business, simply that
    tim
     
  18. DomainNames

    DomainNames Membership: Community

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    Will you put forward that with Ausregistry gone and auDA running the wholesale registry they reduce the wholesale price?

    Ausregistry ( entity and owners) make hundreds of millions in profits from .au.. YES that is the fact most people do not know... They make this due to over pricing of the wholesale price and profiteering for too long...
     
  19. findtim

    findtim Membership: VIP

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    the thread was about loss leading,
     
    Sim likes this.
  20. DomainNames

    DomainNames Membership: Community

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    The thread progressed to what we all want to know... what is auDA doing and what is the benefit for domain name consumers? .. We have to grab you when we can as you evade other topic areas totally or post things like movie reviews of no relevance at all to the current serious auDA issues..

    Please look at the many posts here and on domainer and speak up. ..Show everyone you are not involved in the auDA mess... if you are own it and say yes you are and why... why delete all the auDA website info, why censor nearly any old public info. .... It is the least you owe people here whose vote you asked for.

    Apologies to others but seriously... why will the board members we voted in not speak up or even engage on the forum in the relevant serious topic areas so many are concerned about?
     
    snoopy likes this.