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RBS Knowledge Library
HOW DO I COMPETE WITH REALLY CHEAP BACKUP SERVICES?
http://rbsdrive.com/rbstech/TS100227.HTM

Article Number: 100227
Software: RBACKUP Version ALL

"REALLY cheap" means FREE or something less than $50/year. For years companies have come and gone offering online backup services at prices in this range.

If you search the Web today you will find a few people still offering to do online backups for really cheap prices, and sometimes free. If you had searched the web a year ago you'd have found more than today. Had you searched two years ago, you'd have found maybe twice as many as today. The internet is littered with the bones of companies who thought the public wanted dirt cheap, no support, online backups.

On the other hand, you will find online backup companies who have been in business offering great service at reasonable prices for years, with numbers increasing monthly.

You get what you pay for. Almost without exception, these ultra-cheap services have no local representation nor support. They advertise only over the Web, and offer scaled-down, no-frills services. 90% of them go out of business within a couple of years because they don't charge enough to stay in business AND because customers don't take them seriously. When they go out of business their customers' data are simply erased without recourse.

Our successful Service Providers know that this business is NOT price-sensitive. In fact, with customers more aware of the value of their data these days, cheap services are not at all attractive. They don't trust them. This business is sensitive instead to reliability - security - support - integrity. It's hard to get that in a cheap service that sells for $19.95 a year, and customers can see right through that.

The business is also sensitive to software features. Our software has for years led the industry in software design. We invented Remote Backup and continue to lead it with advanced features and security not available anywhere else, and especially not in any of the dirt cheap mass market services.

Most who use our software simply are not in competition with the cheap services. Those are for customers who don't care enough about their data to spend money to adequately protect it. Again, everyone knows you get what you pay for.

Now, if you plan to advertise your service only on the Web or by Email, and you don't plan to offer any kind of personal support to your customers, and you want to try to compete head to head with these cheap services on price alone, then you will need to lower your price (obviously) to their levels. NOBODY in the serious RBS community recommends that, however.

All these arguments notwithstanding, the fact is that almost none of our Service Providers are reporting that their customers try to compare them to any dirt cheap online service. It just doesn't come up.

We are simply not in competition with the dirt-cheap services. And if you DO find yourself in competition with one of them, remind your prospect that if he had been using Driveway or Freedrive or Atrieva or any of dozens of defunct dirt cheap services who's bleached bones litter the 'net today, their mangled data would now be bleaching along with them.

(SALES)

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