Hi All,

I'm wondering....just how price sensitive is the hosting marketplace? What's your opinion?

If you were to break it down into a pie chart, for example, what percentage of folks are in the:

under $5/month slice;
$6-10/month slice;
$10-15/month slice;
$16-20/month slice;
$21-25/month slcie;
over $25/month slice...

And how do these folks differ in what they're like as customers and what they're looking for?

Do you think people pretty much stay in whatever price range they feel hosting is worth to them and are adverse to "moving up" -- or do they move up to the next level fairly easily after they get their feet wet?

Do you think people are much more likely to fall into either the higher or lower end of the marketplace rather than the middle?

Should be an interesting discussion. Thanks for sharing your opinion!


Take care,

Louis

If you market to the "price" market, then it is very sensitive. If you gain customers by your low prices, you often will lose them to someone else's even lower prices. On the other hand, some will start low, learn to appreciate your service and grow into a larger plan.

However, if you market your added value services and support effectively, then you will find you develop a loyal customer base and they are much less sensitive to price.