Since price is mentioned here so often I thought I would share this and get some feedback. I won't name the company but their pricing is as follows:

Small Business Package
Contents Pricing
$199 Monthly / $199 Setup
1 - 299 POP or IMAP accounts for up to 4 domains

That's right, $199/month for email accounts. Of course it's secure email with all of the bells and whistles. If they can sell that it should be a piece of cake to sell a $20 hosting plan.

<edit> By the way this is their cheap plan.

Hi Dale

This is very realistic. We used similar pricing for an email outsourcing deal we did a few months ago for a medium sized local business.

If you look at the cost of email outsourcing it can work to around $2-4 per month per account. Adding groupware features can take this up to 8-12$ per month.

I've never really looked at this side of the business before. I guess I can learn something everyday. Thanks for the input.

IMO, that is very reasonable. We have been looking at the same pricing structure for Exchange Hosting Packages.