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View Full Version : Features or Price


DrAtomic
09-26-2001, 03:37 AM
Hi,

What is your experience with features vs. price in your package deals? I seem to notice that most of my customers don't care about the amount of features too much but instead care for the lower prices. Is this your experience as well? I am trying both approaches where I have a really cheap package deal with very basic features (1 e-mail adres, 10 MB of webspace, 1 GB traffic) for about $5 and a heavy feature one for about $15 the signup ratio I scored with this approach was 79% for the cheap package and 21% for the heavy feature package. I was really surprised by these numbers since I excpected the majority to choose the heavy feature plan. Are you guys experiencing the same thing?

Cheers,
DrAtomic

Dexter
09-26-2001, 12:01 PM
well I haven't looked at any statistics personally but I'd say that's probabbly about right on.

You'll probabbly find most sites are simple html and image only and so just need a cheap place to host. add in that many are first time website builders that haven't advanced to the point where they would even know what some of the features are!

Jaiem
09-26-2001, 12:19 PM
I think many hosts use it as a marketing gimic. They know most customers have simple sites, relatively small sites but load the packages with features. Makes customers think they are getting a lot for very little.

It's a thin edge to ride. If you do get a bunch of customers that take you up on all those reasources for such a low price that could blow your entire cashflow picture.

sPoT!
09-27-2001, 02:23 AM
I have often thought the same thing. It is best to cut back on the resources, and offer a reasonable price to bring in new clients. I would think one catch to that however could be, support. Since you are targeting "newbies" you would be better off making sure you have extensive FAQ and even step by step tutorials with screen shots. But beyond that, as long as you are covering your cost plus some margin, it is a good strategy. After all, once they are a customer, you can always offer them Value Added Services!

:D :D

sPoT!

mithilesh
09-29-2001, 04:02 PM
I encountered by both type of customer.Some of them preffered lower price but I have also seen some customer who preffered features.:o