I have to admit I was pretty pissed off when I found out stargate had raised their prices recently. I was getting used to the buy two or more domain names for $8.00/each.
Still, at $8.85/each with their DomainXpress, I feel a lot safer sticking with them than moving to some new registrar such as this.
Obviously, as others have noted before, this seems to be a marketing ploy to build up the client base. Either that, or you've got to have some big profit back-end products/services to sell me after I register a domain name.
You're not going to stay in business at $.25 profit. Especially since you're not accepting credit cards. You've got a low price/high volume business model and you're not going to get a large volume of clients by not making it easier for them to pay you.
I suggest raising your prices for the first domain and lowering it for each additional domain purchased (at the same time) thereafter. For instance: charge $8.50 for the first domain, $8.25 for the second, $8.00 for the third, and so on and so on.
You can't expect people to get aboard a ship that is doomed to sink.
Good luck though,
Chris