BlueHost recently increased domain pricing from their long-standing $10.00 per domain up to $11.95 for all domain registrations and renewals.
As much as this is bad for us, as customers, it is also bad for them (Or FastDomain, their registrar). As a registrar, the cost per domain from the registry increases steadily each year–in fact, there’s been around a 35% increase in that cost over the last few years. Many hosting companies change domain registration prices a lot to try to match this. Some, like BlueHost, seem to have tried to hang on to the old prices as long as possible, simply choosing not to pass down the rising rate to the customer. Apparently the latest increase was significant enough that, in order to keep the cost of other hosting services competitive, and to prevent losing revenue for each domain sale, the price was adjusted to $11.95.
This is bad for them because they’re not making anything more off the increased price, and bad for their customers because we have to spend more per domain. In addition to that, they risk losing business because of frustrated customers who have this sudden price increase thrown on them. These cost increases, though not BlueHost’s fault, are still bad for everyone around the board.
Some registrars are still keeping low prices on their domain registrations… but likely charging more in other areas, or cutting back in hidden areas or services, to make up for it. It seems that most registrars are now charging somewhere between $12-$15 per domain registration.