The cheapest alternative has to be to ask the users where they are and store it on the user device? I never understood the need for geoip unless you ship spyware. If the exact location is important geoip is not accurate enough anyway. Forwarding to regional sites automatically is just annoying when it doesn't work properly or someone is traveling abroad.
If it's just to route to regional sites, that's fine. Letting the user select just makes sense. However, there's a lot of use cases that semi-accurate geo-locations make sense. The first of which is analytics. If I'm a marketing person at a SaaS company, I want to know where my customers physically are if possible for a variety of useful reasons. Good quality estimates for location also help with security and complia…
What reasons? What makes you feel entitled to that information if not volunteered?