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Hetzners Statement on the adjustment of setup fees
PacketsDecreaser
Member, Patron Provider
Open and honest communication with our customers is very important to us. That is why we would like to explain transparently why we are currently adjusting our prices and how this came about.
Our server calculations are generally designed for a long, stable term. Our goal is to offer fair and predictable monthly prices that remain stable over many years. However, the current exceptionally high purchase prices for hardware components are significantly disrupting this model. The RAM market is currently dominated by very few manufacturers. In our view, their pricing policy is hardly comprehensible and has driven up costs massively in a short period of time. The situation is similar for NVMe SSDs. In addition, it is apparent that even promised quotas and price commitments from suppliers are currently only reliable to a limited extent.
These significantly increased procurement costs arise directly from the provision of a dedicated server and cannot be distributed economically over the current contract period. We view this development critically—it affects us as a provider just as much as it affects you as a customer.
For this reason, we are initially adjusting the one-time setup fees for dedicated servers. This increase does not cover the actual additional costs by far, but it is a necessary first step in order to continue using high-quality hardware, meet our quality standards, and remain able to deliver.
At the same time, we would like to communicate openly that this is unlikely to be the only step. There are currently no signs that market conditions will ease. According to market research company TrendForce, price pressure is likely to continue in the current year. Therefore, adjustments to monthly prices will be necessary in the coming weeks. We are currently reviewing whether we need to extend the price adjustment to other product lines in addition to dedicated servers and our cloud service, and whether existing servers will also be affected.
We greatly value the trust and partnership we have built with our customers. We are confident that we will continue to offer you competitive price-performance ratios and kindly ask for your understanding.
Source: https://www.hetzner.com/pressroom/statement-setup-fees-adjustment/
Comments
wonder what are they gonna blame the ram shortage for next, not being able to make their wives cum?
Interesting. AX162-R - 542 EUR setup fee, but AX162-S - 411 EUR setup fee. This is RAM bound. Because s type has more storage, but this does not affect setup fee.
Well, OVH to help.
So, realistically, you pay RAM for next clients server setup.
WTAF are those setup fees lol. You definitely pay for (future) RAM here. Crazy.
@Hetzner_OL
Why should we pay for future customers and their ram? Raise the monthly prices if the ram prices are too high but some hundred bucks as setup fee is crazy imo
Hi,
i do not really understand what you both mean with future?
The RAM/stuff is NOW crazy expensive.
The orderform is to order NOW a service that is based on this crazy expensive hardware.
So where exactly is the future? The future is now
Actually since 2 months 
Why is it considered too high?
128 GB of RAM costs around €800 while the setup fee in this example is €200.
I prefer paying higher monthly prices instead of such setup fees. For someone who needs a server only for 2 months, this setup prices are way too high. I'll go eith another hoster, hetzner auction servers or wait until they have a promo for their setup prices
@layer7 I get the logic, but the math is terrible for the customer.
A ~130€ setup fee on a 55€ server means I am basically financing the hardware for Hetzner. If I cancel early, I paid for the RAM/Disk and they keep it. That isn't renting, that's hardware sponsorship.
If procurement costs are the issue, why not offer 12-month contracts to spread the cost? I'd rather commit to a year or pay a higher monthly rent than pay this huge lump sum upfront. This fee structure kills the whole point of renting vs. colo
Short-term customer: “I don’t want to pay a hefty installation fee!”
Long-term customer: “I don’t want the monthly price to go up!”
I can’t help but laugh.
In a sense though, their statement makes sense. If you are planning to keep the server long term, it is better to keep the monthly fees lower and have the upfront fee. Likewise, if RAM prices drop again later on, they can just reduce the setup fee again.
That said, it does make a complete mockery of their hourly charges. On the AX162-R, the setup fee is 1700x the hourly rate (over 70 days) so literally nobody is going to be renting these by the hour!
Take a note, recuring prices will be reviewed upcoming weeks for dedicated and cloud services. So not only setup fees get a bump, but also everything else.
Expect the same all over the place.
Well that's the whole idea so then it works.
As they said in the statement:
Dedicated providers do not want customers that rents a server for 2 months, that's not hard to figure out.
This is my thought as well, I understand why prices have to rise, but high initial setup costs to a customer is like flushing money down the toilet, and it surely encourages people to consider purchasing their own hardware instead of gifting money to a company to buy theirs, and then still being made to pay monthly for it.
In my opinion it would be better to simply raise the monthly price instead and spread that setup cost over a year, because I'd be sure that they are charging a new customer the same setup fee even if a customer before has already paid it.
Damned if you do and damned if you don't I guess. What a mess the IT industry is at the moment.
Holy shit those are impressive setup fees, team all getting new company bmws.
if you pay that high setup fee with other providers (namely ovh) being around, you're genuinely retarded
Hi,
@gbzret4d
doing longterm contracts makes in international business just no sense if you talk about business 2 customer contracts. Do you think a company will sue a private person because of 600 EUR/USD that were not paid on another continent? Nope. Say thank you to all the idiots out there.
No worry, the raise of monthly prices will come too. Not only for hetzner. Just give it some more time until stock hardware is sold and providers are confronted with current pricings that are easily 3x higher than last year for crucial components like RAM and SSD. On top comes reduced availability.
If you plan to rent hardware this year, then better do it now while the prices are still low, even if you dont need the hardware now. Things wont become better this year as it seems.
Worst time to need capacities...
This 600 EUR setups are by the way still low.
Good luck to all of us... thank you dear AI
About to change as well.
https://x.com/olesovhcom/status/2017929649599263218?s=20
⸻
LOL Ram prices skyrocket because of datacenter, then datacenter say we raise price because ram is expensive. Looks like some sort of pyramid scheme to me. Iam going to play outside for the next couple of years ! Already canceled al my servers at Hetzner so more money for beers.
Hi,
no not really ( i think ).
AI wants capacity and order hardware with the big vendors ( micron / samsung / ... )
At some point the vendor's realized that AI is building up so fast capacity that the vendors have to make a decision... selling to AI companies for +500% price or to everyone else for the regular price...
Guess what they decided ;-)
We are here all victims. The endcustomers, the "normal" companies/hosters/...., the datacenters ( AI is growing hard, but the whole rest of the market wont with this prices ).
The only winner's here are the big vendor's who sell the same chip now suddenly for +500% ( current price level, might increase more
))) )
And of course the winners are all the cool people who are using AI extensively because its so cool.
Essentially you are paying now for your ( supposedly free ) AI usage through the backdoor hrhr... well done
And yes, i agree with you... time to do some digital detox ^^; Maybe AI will safe the planet because noone can afford participating anymore with this all internet stuff as the hardware is too expensive ( do not worry, mobile phones will be hit too i assume ). So no energy/resources need to be spend on that.
So i have to correct myself: Use AI, safe the planet!
Seems a multi dimensional scheme to safe the planet... or maybe kill it... not sure yet
Obviously too big for my small brain... have to ask AI for its opinion about it...
Hahaha you see it's a circle, let's go all outside again, and let them die a quick death. Then the pain is gone sooner.
Can't wait for the bubble to pop, then I hope everyone remembers what Micron did.
I can tell you now, will never buy there products in my life again, also Nvidia can go f themselves.