Sure, because they've got you where they want you, by the IP#s and installations. Most of us can't move easily, most of us won't move. As an example, note the UK-based company that shall go nameless... their customers are still there, a year or more later, long after they've realized the low initial price is no bargain, simply because it's so complex to move.
That's the problem - people often get lured in by the cheap offer without actually reading the small print and working out what it will cost when they start to shift more traffic (bandwidth), require an upgrade, need some "support" or want to move only to find it very hard (and expensive).
If its the same company I am thinking of (and to be honest there are a few that spring to mind) they quote very low rates for things like domain registration (something like £0.05) but then you find out that the cost is per month, it excludes the central NIC fees and its for a minimum of 2 years plus if you decide to manage the DNS yourself or transfer it elsewhere you get hit with high charges that meant it would have been much cheaper to go elsewhere in the first place.
If I rented out systems (which I don't), I'd never allow the second option. If there's something wrong with the RAM that shorts out my RaQ, who's going to pay to replace it? Do you buy RAM from swap-meet sellers, or from unknown sellers on eBay? Lots of people do. The RAM may be guaranteed, but who pays for my machine?
That's right - if you are renting the machine you have to go with an upgrade provided by the people who own the machine. If you own the machine yourself its up to you if you fit cheap or unreliable stuff that doesn't work properly and probably pay for it 10x over in downtime, hassle or engineers fees.
I'd hardly call either eBay or computer trade shows (read: swap meets) wholesale venues. And yes, I speak from hard-learned experience. These guys are just traders; they buy excess and/or distressed merchandise (often pulls), and sell it at a meager profit; too meager most of the time to be worth their trouble if anything goes wrong.
I agree - I have seen a few of these shows - they are usually full of "junk" that people either don't want or doesn't work and you mostly get zero warranty.
Value Added Tax; it's much simpler to figure/collect than the U.S. "sales tax" system. There are no exemptions. Everyone who sells a product sells adds the percentage of VAT on the difference between what he bought it for and what he sold it for. So there's no such thing as a "wholesale" exemption.
Not wishing to carry on a discussion about taxation but there are some goods that are exempt (see: http://www.hmce.gov.uk/notices/700appa.htm if you are having problems sleeping!) and a few others charged at a lower rate (domestic fuel & power). But it is correct - 17.5% is applied to pretty much anything that people in the forum are likely to be concerned about!
Thanks...