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Cloud pricing term

What is Promotional vs renewal pricing?

Promotional pricing is a temporary lower rate, while renewal pricing is the rate that applies after the promotion ends or the first term renews.

Also called: introductory price, promo price, renewal price, first-term pricing.

The expensive mistake

Multiplying the promotional month by the full contract. IONOS VPS S+ has a lower recorded price for the first three months and a higher renewal price afterward under a 12-month term. The first-year total must use both rates.

Where it appears on your bill

The same plan line changes price after the introductory period, or the renewal invoice uses the regular monthly rate.

Worked example

For the recorded IONOS VPS S+ terms, first-year cost is 3 x $2 + 9 x $5 = $51. Using $2 x 12 gives $24, a $27 or 52.9% understatement. A second full year at the recorded renewal rate is 12 x $5 = $60.

Example prices checked:

Primary sources