I'm starting a web solutions company that's targeting the local (Indian) as well as the international market.

I wish to have the same price for both the markets, I know it is difficult for the prices to be competitive in such a condition, but I wish to make the quality of my services so good that they bridge this gap between the pricing structure of both the markets.

I am planning to have a standard rate of 100mb for 2$ for both Indian and International market. So, here's a look at some o' my plans -

+ 100mb Space
+ 1000mb Bandwidth
+ Unlimited Features
+ Cpanel
+ PHP/CGI/SSH
+ Streaming Videos etc.
+ Fantastico
+ 99.9% Uptime Gurentee (I'm pretty sure of this because my Host has never let their customers down in this respect)
+ Good Connection Speed (I'm pretty sure of this too)
+ 2 hour response time, 8-10 hour max solution time (When I start getting a considerable amount of tickets, I'll move to an Outsourced support, so this time will become very less)
+ Cost 2$ p/m



+ 200mb Space
+ 2000mb Bandwidth
+ Unlimited Features
(Same As Above)
+ Cost 4$ p/m



+ 500mb Space
+ 5000mb Bandwidth
+ Unlimited Features
(Same as Above)
+ Cost 10$ p/m


Do you think that the quality of services I offer will cover up for my package costs. In the Indian these markets will be rockers, but these are not the best prices in the international market.

What do u guys think? Will people pay 2$ for 100mb for quality services considering the fact that I'm offering Shared Hosting.

Your right ... its a good price in Indian Market but on international basis it would be a lil expensive ... but if you offer real good 24/7 support with real good uptime & server etc., customers would be happy to pay it.

Yes, it can be hard to "bridge the gap". Though, with excellent support and quality service, many wouldn't mind paying what you have set.

Kool! That's nice to hear.

I don't think thats much bandwidth. Maybe add 50% or double it?!

Originally posted by Tamranda_Ankit
Your right ... its a good price in Indian Market but on international basis it would be a lil expensive ... but if you offer real good 24/7 support with real good uptime & server etc., customers would be happy to pay it.

Sorry, expensive?! Firstly I agree with rondo, but no, thats very cheap. But it depends what market your aiming at, not just geographical location.

Originally posted by Kepplar
Sorry, expensive?! Firstly I agree with rondo, but no, thats very cheap. But it depends what market your aiming at, not just geographical location.

Sorry I didn't got you ... Do u mean giving 500 MB Space with 5 GB Bandwidth for $10/month is cheap ?

Originally posted by Tamranda_Ankit
Sorry I didn't got you ... Do u mean giving 500 MB Space with 5 GB Bandwidth for $10/month is cheap ?

I was focusing on the $2 package. $10 is fairly reasonable.

The way I see it, is that a web host isnt just providing space and bandwidth and what not, but also providing a service, the support. That I think should count for something when costing.

Yes, your packages are very cheap.

Have a read through this thread: http://www.webhostingtalk.com/showthread.php?s=&threadid=359524

We are discussing this exact sort of thing in that thread right now, there is a ton of excellent information in there on how to determine reasonable prices based on your costs (so that you can run a solid business) as well as what is a discount host/discount service.

Folks really, really need to read around on the topic and stop focussing on price. You will never be able to compete on price, a successful business competes on service and niche marketing.

http://www.sitepoint.com/blog-post-view.php?id=221122 is a very good example of the direction to take. :)


:D Bailey

Thanks Bailey, Kepplar, Ankit and rondo.

I agree with bithost, it's hard to compete with price nowadays in the hosting market. Just try to keep your prices competitive, and focus alot on service. I also think your bandwidth could be a bit higher for the packages; you can probably assume that not all of your clients are going to be using their max quota every month.

I'd scrap the $2 plan unless you're charging annually because otherwise the merchant fees will take a whole lot of that...

Intelle:

Targeting the Indian market is a *great* idea - I'm often surprised how much Indian businesses are willing to pay for hosting per month. You can probably manage to charge about 300 INR/month which would come out to just about $6.95/month and local businesses would flock to you.

If you go down to the $2/month bracket it's going to be tough hiring an outsourcing company and still manage to turn a profit (believe me!)

Roj

I'm only allowing 2$ plan to be paid annually. The thing is that its alright if I have a plan like:

200mb Space
2000mb Bandwidth
Unlimited Features
99.9% Uptime
Good Support
Fantastico
la la la.....
4$ per month

But think about this plan:

4000mb Space
40000mb Bandwidth
Same as Above
80$ per month

That's not good is it.....

$2 paid annually seems to be a good pricing.

200mb Space
2000mb Bandwidth
Unlimited Features
99.9% Uptime
Good Support
Fantastico
la la la.....
4$ per month

But think about this plan:

4000mb Space
40000mb Bandwidth
Same as Above
80$ per month


How would you stop people buying 2 of the 200/2000 packages to save the $72 a month?

Its 4000mb not 400mb if u see it properly. :)

Also whether you choose to list is as $2 a month, or $24 a year as an effect. You want to come across as value for money, not cheap. The aura around cheap hosts is crammed servers, bad customer support, unreliable services. Clients are far more willing to part with their money if you can convince them its value for money. Now, being inexpensive is good, but sounding to cheap isnt. bithost(NET) came up with a few good points there. Worth to note.

As I see it, why double your price from plan to plan?
Personally, I don't (As you can see from my site).
I usally space the features, and prices of my plans so that the Oh! why not :) factor plays in.
As in, oo! look at this, only $5/month for 200MBs space! but wait! here's 400MBs space for only $8! wow! why not just buy this and save money in the long run! ^^ .
As of yet, I cannot say how my pricing will do in the real market other then wha I can think of in my head, so I'll get back to you all in a couple of months if business picks up :)

Well, I wanted to ask this question as you pointed out axe9, should I keep my prices going downhill as the plan's resources increase.