If your business strategy involves going with a vendor with 'cheap' in the name, that's probably the Root Cause of most issues that arise from that vendor
These days I can't imagine using anything other than AWS or Cloudflare.
If you undercut everyone, they will undercut competitors with the same strategy
If a cheap competitor undercuts a cheap competitor margins will tend to zero
If a competitor is pricing at zero and you need to undercut them, you will operate at a loss
Eventually the company will either shut down, or be liquidated, its valuable assets (the existing contracts and list of customers) will be bought by competitor or Private Equity.
This is common in domains, thousands of registrars get acquired by a megacorp, see NewFold Digital.
So in essence, when the business proposition is being cheap, the natural consequence is the business dying and being sold for parts to a purchaser that will have to degrade the cost to value relationship that got the customers in the first place.
Consider a market with three suppliers.
Supplier A charges $12.00 and is widely regarded to be The Worst. Their only support is a broken chatbot with a tendency to lock your account at random and their UI is full of dark patterns that trigger hidden fees.
Supplier B charges $12.50 and is widely regarded to be a reasonable operator that will rarely screw you and offers basic no-frills service.
Supplier C charges $20.00 and is widely regarded to be a reasonable operator that will rarely screw you and offers a bunch of convenience features and integration with WordPress or something.
Which one are you going to choose? Maybe C if you want the convenience features, maybe B if you want the lower price, but never A, right?
Now suppose you're B and you want to pick a name that emphasizes that you have a lower price than C.
The market of people who have been burned and value support is <<< everyone else who is just getting stuff done and don’t care, or don’t have the money to care.
Is this why Kias are the most popular cars in North America?
I was lazy and didn’t want to specify the constraints based on the specific economic good.
Cost is a factor, but not the only factor or even the dominant factor. Spirit Airlines is, after all, bankrupt.
That's what the cynics always say, but do people actually choose A when B is available?
It's not just cars, look at landscaping, cleaning or handyman services, barber shops, etc. These are all commodities. How many coffee shops stay in business by providing poor service and bad coffee?
People mainly pick A when there isn't a B.
How? Magic? No, they operate at a loss for years, (especially if the loss is very marginal, which is the case for selling domains at 10$ instead of 11$).
The profit is pushed in the temporal scale into the future through investment, instead of needing to extract profit instantly at every moment.
This is known as price dumping and it occurs in thousands of industries.
I'm all for understanding what went down the drain, pondering on the name doesn't help much IMHO.
I'd love to get a bit more info on how CVC Capital Partners handle their purchases, what I get online is extremely generic and non descript.