Price Increase - Why Did We Do It?

by Lynnette Nolan | Mar 19, 2009

I got an email this morning from a long-time user complaining about our recent price increase: "It's great that you've released Remote Access, but why does that justify a price increase?" As you may know, we recently increased our yearly subscription fee by $5, to $54.95. The simple fact is that the size of our average user's backup is growing by about 3% per month. That's 36% more data every year, and consequently we have to buy 36% more disk space and pay for 36% more bandwidth. Luckily the price of disk storage is also coming down, so we can keep our price increase to just 10% after 3 years. There's a new generation of less expensive 2TB drives coming out later this year that should allow us to hold this price for quite a long time — certainly several years. Meanwhile, we're still 10% less expensive on an annual basis than the companies that are hawking $4.95/mo ($59.40/yr).

Dave
CEO, Carbonite