Decker Luke
05-25-2003, 07:59 AM
I'm currently starting up my Hosting company through local advertising.
Here's what I'm working with:
DISK SPACE: 3 gb
DATA TRANSFER: 30 GB
MAILBOXES/USERS: 300
HOST # DOMAINS: 30
PRICING (for myself): $34/Month
Keep in mind - I'm selling this locally via website and there is literally no competition. What would you all suggest as far as my pricing?
The Pioneer
05-25-2003, 08:17 AM
Well, the way we have our pricing set up is this way;
Merchant Transation Fees + State Taxes + Technical Support Fees + Minimal Server Usage Fees = Base price
and then..
Base price + Your additional dollars [direct income] = Your price
Work with that, and see what it gets you. $34 per month isn't that bad of a pricing, but if you're selling locally, you may want to raise the pricing a bit more, considering this is a reseller account as well.
Decker Luke
05-25-2003, 08:19 AM
Sorry, I didn't specify - I'm using this as an example to split up between customers.
adland
05-25-2003, 11:02 AM
I think he was saying $34 isn't really your base price. Add in the other costs to get your total base cost. Then add how much profit you would like to make on that investment. Divide by 30 to find the ballpark figure for each plan.
From there, maybe beef them up a bit in terms of bandwidth or space to make them more attractive (while realizing there is always the risk that if you oversell your clients may actually use all the resources you promised).
Decker Luke
05-25-2003, 11:07 AM
Alright, thank you for the information!
worlddan
05-25-2003, 11:29 AM
From a capitalist perspective, a fair price is whatever a market will bear. With that in mind, why don't you survey some of the local customers (since that is your focus) rather than posting here. That will give you a better idea. The system the above posts have is fine. But if their forumla gives you the result of $60 a month and no one around will pay that...you have a bit of a problem.
Daniel