Is the most money for the shareholders determined over the here and now or over the long term?

If you lose 600,000 registrations at $6 but increase the price by 7% n exisiting registration you might make a little more in year one, but take into account all the renewals you won’t be getting at $6 for every year thereafter on the 600,000 registrations you chased away.

Do the math and you will see the normal Wall Street philosophy, that a $1 in profit today is worth $10 in lost profit in the next few years.

This is one of the reasons we have the mess in the market.

Big business needs to get smarter.

The quick buck today is not worth the loss of revenue down the line or loss in reputation or trust of the public

If you raise your prices by 7% but lose 10% of your business, I think that’s a net loss of 3%.”

Verisign is not seeing total registration drop by 10% every time it increases prices. It is in a monopoly situation, demand dropoff isn’t likely to be anywhere near the level of the price increase. Verisign should be putting up prices as much as possible if they want to maximise profitability (and that is their obligation to shareholders).

The real issue here is poor oversight by Icann to allow prices increases with little justification for them. Verisign is only doing its job and that is to make as much money for shareholders as possible. at the end of the day the finger should be pointed squarely at Icann for failing to protect registrants in allowing all those prices rises.

All these companies will feel the pain if any of their foundation was built on greed and unethical business practices IMO.

This includes some domainers and their businesses.