Hacker News Reader

Maybe it's just me, but it always seems like a cash grab whenever a company updates its prices and allows customers to prepay x amount for the old price. Why not offer a discount, or coupon code instead? Not saying that I disagree with the price increase, just that specific method of rewarding existing customers.

View on HN

Yev here -> it does absolutely move money "up" - but as a company (at least if you're disciplined) it doesn't mean you get to use it. You're basically deferring revenue (the amount lost from not increasing prices on existing customers for X amount of time) and the money you bring up is for a service you still have to provide, so for accounting purposes it's more or less "locked down". So you're absolutely right, it does bring money forward, but there's costs involved as well!

Reply on news.ycombinator.com