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Non-US customers are suffering double torture from both inflation and dollar appreciation
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Non-US customers are suffering double torture from both inflation and dollar appreciation

I have received countless emails of price adjustment notifications in few months.
As a non-US customer the local currency here has significant depreciated against USD during the last year.
So even without the price adjustment from providers' side, the actual cost for cloud service has increased a lot compared to previous years.
I dont know if providers can reduce overall spending with the dollar appreciation. But the current situation is quite painful for foreign customers.

Comments

  • NeoonNeoon Member, Community Contributor

    We should trade more resources other currencies, however, countries that tried to do that, unwillingly ended up importing democracy.

  • by local. simple as that.

    Thanked by 1Chuck
  • ralfralf Member
    edited September 24

    I know it'll probably affect me more in the future when I need to buy things, but the exchange rate is working well for me as I live in the UK but bill my customer in USD. Just hope it doesn't go back up again before my next invoice is paid!

    It does suck a bit for shares though as most of the US stocks I'm interested in are at their lowest point for ages, but the exchange rate has dropped so much, it's a terrible time to buy them.

  • aliletalilet Member
    edited September 24

    Yup. Previously if I was paying 100, now I am paying 250 for same thing.

  • @alilet said:
    Yup. Previously if I was paying 100, now I am paying 250 for same thing.

    Compared to last year at 100, it should be 125 at most now after this week's sudden drop. Any higher and you're being ripped off.

  • Anyone with basic financial knowledge should have exchanged for some US dollars in March 2022, when various news outlets reported Fed's interest rate hike plan.

    For those who didn't reserve some dollars, however, just let it be and focus attentions and efforts on Big Brothers, which are our biggest threats.

    Thanked by 1vyas11
  • afnafn Member

    GBP hit an all time low now, roughly 1 USD = GBP, and the USD is higher than EUR

    EUR <= USD <= GBP

    It's madness...

    I should have asked to get paid in USD :facepalm:

  • yoursunnyyoursunny Member, IPv6 Advocate

    Non-US providers are enjoying extra profit due to dollar appreciation.
    When I ordered Webhosting24 in 2020, I selected USD currency, so a €10 service became $12.
    Now €10 equals $10 but my next invoice would still be $12.
    Thus, @tomazu could have an extra coffee.

  • One way to combat inflation is to just add affiliate links to your LET signature and post in every thread.

    Thanked by 2yoursunny ralf
  • jbilohjbiloh Administrator

    The global economy is always complicated but it feels even more complicated now than ever.

    The market intervention (manipulation) by the US Federal reserve is outrageous. Unfortunately, it seems necessary after years of overspending by the president and congress. Talk about a public debt bubble for the ages.

    At the same time the loss in value relative to the dollar seen in the Euro and Pound is jaw dropping.

  • vyas11vyas11 Member
    edited September 24

    @afn said:
    GBP hit an all time low now, roughly 1 USD = GBP, and the USD is higher than EUR

    EUR <= USD <= GBP

    It's madness...

    I should have asked to get paid in USD :facepalm:

    This is called Singularity

  • @yoursunny said:
    Non-US providers are enjoying extra profit due to dollar appreciation.
    When I ordered Webhosting24 in 2020, I selected USD currency, so a €10 service became $12.
    Now €10 equals $10 but my next invoice would still be $12.
    Thus, @tomazu could have an extra coffee.

    would hardly be enough to offset his power tariffs though.

    Thanked by 2hostdare yoursunny
  • afnafn Member

    @yoursunny said: Now €10 equals $10 but my next invoice would still be $12.

    Thus, -tomazu could have an extra coffee.

    It really depends on the provider, how many customers pay in USD, and the exchange rate he gates, etc.

    If servers are in EU, these $$$$ are converted to EUR for sure, but sometimes you lose considerably when exchanging currency... Not to mention all the times when the USD was the way weaker than EUR, a month they get 12$ -> 10 eur, sometimes 9ish, sometimes 11. Your provider was eating those small fluctuations for a long period

  • yoursunnyyoursunny Member, IPv6 Advocate

    @afn said:

    @yoursunny said: Now €10 equals $10 but my next invoice would still be $12.
    Thus, -tomazu could have an extra coffee.

    It really depends on the provider, how many customers pay in USD, and the exchange rate he gates, etc.

    If servers are in EU, these $$$$ are converted to EUR for sure, but sometimes you lose considerably when exchanging currency... Not to mention all the times when the USD was the way weaker than EUR, a month they get 12$ -> 10 eur, sometimes 9ish, sometimes 11. Your provider was eating those small fluctuations for a long period

    Webhosting24 has servers in Munich and New York.
    My service is in Munich but I pay USD; other customers might have service in New York but pay EUR.
    I suppose he pay New York colo in USD and pay Munich colo in EUR, so he doesn't need to convert everything.
    Whether he'll pull a PulsedMedia and add $3/month on the next invoice to offset power increase, it's anyone's guess.

  • But have you seen how much Americans pay for a plate of Spaghetti?

    Thanked by 1Logano
  • TIL you can buy unflavoured tea.

    Thanked by 1johnnyquestion
  • DPDP Administrator, The Domain Guy

    @ralf said:
    TIL you can buy unflavoured tea.

    I would assume that's not the regular black tea.

    Probably something like Green, Chamomile, Lavender etc. :smiley:

  • @johnnyquestion said:
    But have you seen how much Americans pay for a plate of Spaghetti?

    Have you seen what spaghetti and meatballs cost in the store? It'll surpise you! Of course that would mean you'd need to spend 30min cooking them but...

  • yoursunnyyoursunny Member, IPv6 Advocate
    edited September 24

    @johnnyquestion said:
    But have you seen how much Americans pay for a plate of Spaghetti?

    Table: 502
    Guest Name: No Guest Name
    # of Guests: 0

    This plate of spaghetti is served to a table that has zero guests.
    Stupid Americans are paying for spaghetti that nobody eats.

    Thanked by 1Chuck
  • @johnnyquestion said:
    But have you seen how much Americans pay for a plate of Spaghetti?

    How does one grill macaroni?

    Seriously, if you eat at a place called Macaroni Grill, the problem is partially you.

  • @johnnyquestion said:
    But have you seen how much Americans pay for a plate of Spaghetti?

    I guess Romano's Macaroni Grill is on my not to go restaurant.
    add inflation fee on top of expensive menu top off with taxes.

  • hwthwt Member

    I'd give them credit for being transparent. The food establishments over where I'm just hiked up their prices by some 10-15%.

  • @johnnyquestion said:
    But have you seen how much Americans pay for a plate of Spaghetti?

    Hawaii has always been extraordinarily expensive due to it well, being ~2,500 miles away from the western coast and everything must be shipped in.
    I live in the midwest, I only spend $16-18 on a plate of spaghetti depending on the place.

  • vyas11vyas11 Member
    edited September 25

    @johnnyquestion said:
    But have you seen how much Americans pay for a plate of Spaghetti?

    That is from March 2022. What might be the rates now?
    Is the inflation fee reduced, removed, higher or the same?
    Is Brandon still working, or quit/laid off?
    Is it cheaper to eat in the restaurant than at the bar area?
    Since Euro is cheaper now, has the restaurant reduced base rates for Italian food

    Much to ponder

  • @ralf said:
    TIL you can buy unflavoured tea.

    Speaking of Tea

  • tomazutomazu Member, Host Rep

    @yoursunny said:

    @afn said:

    @yoursunny said: Now €10 equals $10 but my next invoice would still be $12.
    Thus, -tomazu could have an extra coffee.

    It really depends on the provider, how many customers pay in USD, and the exchange rate he gates, etc.

    If servers are in EU, these $$$$ are converted to EUR for sure, but sometimes you lose considerably when exchanging currency... Not to mention all the times when the USD was the way weaker than EUR, a month they get 12$ -> 10 eur, sometimes 9ish, sometimes 11. Your provider was eating those small fluctuations for a long period

    Webhosting24 has servers in Munich and New York.
    My service is in Munich but I pay USD; other customers might have service in New York but pay EUR.
    I suppose he pay New York colo in USD and pay Munich colo in EUR, so he doesn't need to convert everything.
    Whether he'll pull a PulsedMedia and add $3/month on the next invoice to offset power increase, it's anyone's guess.

    we try to have congruency, so we at least try to get paid in the local currency we are paying our suppliers for the bigger server contracts. Strangely enough that is the USD not only in the US, but also most of Asia and the EURO within the EU. And we also try to have contracts with fixed power prices for a one or two year period in place (quite some years ago we saw power prices being hiked 50% and 60% in one year in Germany (thank you EEG!)), but this varies by county and is stacked across different periods.

    Last but not least for the .COM/.NET etc. purchases we do as an ICANN Registrar in USD we are hedging 70-80% of our yearly volume, so that we should be covered till the end of 2022 from the currency point of view.

    I think that we will have to adapt pricing for some gTLDs in February when the next round of price increases is due for some gTLDs, but currently have no plans for other price changes. We are probably not going to touch the VPS pricing anytime soon - any support requests we receive would cost us more to service than any price increase :-)

    This being said, I feel comfortable saying that volatility for the the next 10 years will be higher than the last 10 years, so everybody needs to stay flexible.

    Thanked by 2yoursunny Shot2
  • @vyas11 said:

    @johnnyquestion said:
    But have you seen how much Americans pay for a plate of Spaghetti?

    That is from March 2022. What might be the rates now?
    Is the inflation fee reduced, removed, higher or the same?
    Is Brandon still working, or quit/laid off?
    Is it cheaper to eat in the restaurant than at the bar area?
    Since Euro is cheaper now, has the restaurant reduced base rates for Italian food

    Much to ponder

    probably the inflation fee is higher now.

  • edited September 26

    Cheap spaghetti is coming!!!
    https://www.olivegarden.com/its-back-countdown

    Hopefully I can snag a Lifetime Pass if they offer it

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