The current pricing right now on renew of domains went up to 17.99. However, if I purchased a new domain. I get the first year for 11.99. While other companies out there are offering a lot less for both the first and multiple years.
I have about 20 domains right now. I can transfer to other equally good registras for half the 17.99. Honestly, it isn't enough work that it deters me from doing so. 20 domains * 9.70 each savings. You are looking at over 180 dollars in savings.
The point is godaddy isn't the only company out there trying to win customers over their company.
Support these days is pretty universal. Maybe the average individual who has one domain and runs their personal site might find it not worth while moving or those who have enough domains that they can benefit from the clubs and other discounts otherwise Just transferring each year is a good savings. Right now godaddy is offering transfers to them for 0.99 including one year registration.
Basically all you have done is create a group of people who move their domains around. Why not just do the smart thing and price the domain registration competitively. That way you don't have people like myself who are going to go off to the other company to get a discount. Then you end up saving me time and effort and you don't loose out on what profit you would have gained from keeping me around. All you managed to do is create a revolving door system that creates more work for your company transferring people in and out. it cost me less than $8.30 to transfer, next year I come back to you. so that 2 years for just over $9 And your company probably does more work doing that they did with having me as a customer for over decade. That just doesn't seem to smart.
There are several domain pricing models @GRHayes and the model you listed is one. I'm not going to pretend to know why any company does what the do but I suspect they have a reason? I appreciate having my domains consolidated and close to my hosting but you can of course configure domains to point to anywhere. Choice is great though right?
roy darling *my posts seem a lot shorter in my head