Wow, alot of penny pinching goes on over the net. There seems to be a different mindset with people who deal primarily on the Internet. They're transient, and they'll move around just to save $5 a month.

On the other hand, go after hosting accounts from local businesses in your area. $10/month? $15? $20? What does it matter? Don't waste my time, give me a pen so I can sign the cheque, they'll say. Such amounts are trivial for most businesses, and they won't even give it a second thought writing a cheque for $300 versus $120 for a year of hosting.

And it'll likely be the best kind of customer you'll ever have - low bandwidth, hassle-free, loyal, & no spam.

All I've got to do now is make some time to go out and follow my own advice. I keep getting busy with work that I haven't made time to go out and get those accounts. But I know that with some effort, local hosting accounts can be golden...


Vito

We're trying to establish a better local foot print and I must admit I enjoy working with the local customers a lot more.

I know of at least one company that got approached by a local web hosting company a couple of years back and as a result, most of their clients are hosted with this local web host. I've got no idea why they use them (from what I have heard, they still do) as they are so expensive - they charge for everything... even for modifying the DNS records. And for some reason they manage to charge the same for UK domains (.co.uk) as international ones (.com) which incidentally already have around a £25 (~$35) markup.

I guess you just need to spend some time finding the right sort of client and the money will just start rolling in! :)

This is true .. we charge $50/mo for "Managed Hosting" to local businesses ... they are the best customers to have ....

How true, vito!

But this scheme is based on the absence of local competitors
Once a local hosting company advertises lower prices
Even "old fashioned" local customers will move to the cheaper
Especially if the cheaper is biger, which usually will be the case
Old economy customers like to work with the big companys
That´s why they kept buying IBM PCs for decades

When local competition arrives, competitive pricing is important
You drop your prices to become more attractive locally
Thereby getting also more attractive for "cyber customers"
But also exposed to cyber competition, for those customers

To make profit with low prices you need to reduce your cost
To reduce your cost you´re looking to work more efficiently
Which turns out to require a "critical mass" of customers
Sales to non-local customers allow to reach that "critical mass"
To sell to non-locals, low prices are important (and quality too)

Local competition can thus force you to be competitive regionally
And regional competition can force you to be competitive worldwide.

Very good point Vito!

All the local businesses we host even give us "tips":)

While I agree that in general competition tends to bring prices down in most markets, I'm not sure it applies as much in this case.

There are alot of business owners out there very aware of current hosting prices, and pricing certainly plays a role in their decision of who they go with.

But I think there are even more small business owners who are not as internet savvy. Nor do they care to be. They just want to run their businesses, day to day, and turn a profit. They don't really have an interest in spending alot of time developing their online prescence (although they should be). These are the customers I'm talking about. They want to be online, but don't want to fuss with it. They want someone to put a site together for them, put it online, and maintain it for them. Hassle free.

As long as you give them what they want, and make it effortless for them, I think that this type of client is far less likely to respond to competitors' low-price promotions. They're happy being taken care of. And the $100 a year they could save isn't even a consideration.

I would love to have a few servers filled with nothing but customers like this. Pure gold.

Vito

Originally posted by vito
Wow, alot of penny pinching goes on over the net. There seems to be a different mindset with people who deal primarily on the Internet. They're transient, and they'll move around just to save $5 a month.

On the other hand, go after hosting accounts from local businesses in your area. $10/month? $15? $20? What does it matter? Don't waste my time, give me a pen so I can sign the cheque, they'll say. Such amounts are trivial for most businesses, and they won't even give it a second thought writing a cheque for $300 versus $120 for a year of hosting.

And it'll likely be the best kind of customer you'll ever have - low bandwidth, hassle-free, loyal, & no spam.

All I've got to do now is make some time to go out and follow my own advice. I keep getting busy with work that I haven't made time to go out and get those accounts. But I know that with some effort, local hosting accounts can be golden...


Vito
Go for it :D

Yeah, but

1. even the non-initiated will notice if there are several local hosting providers (those who advertise in the local newspaper etc.) and compare their offers.

2. of course the "turn key solution" thing is an argument, they like to get all from one preferrably local provider and are willing to pay much more for that hosting. But this isn´t a hosting company anymore, hosting is just an accessory they´re selling. My thoughts were more about those for whom hosting is the main business.

I know a chap that hosts local sites for AUS$495.00/yr per domain. He's not short on clients too. :)

<working calculator>
Let's see, $495/yr * 1000 customers equals...
</working calculator> :eek: :eek: :eek:

Hmm. I'd finally be able to afford that trip to Australia to see how the real world lives... :D

Vito

Hello

I have about 200,000 banners on the internet each month but yet 90% of my sales comes from my local business (and local resellers).

It is easier to work with local customers. They pay easily and you will not encounter charge backs, spam, fraud etc. and Most of them are serious.

Mac

Let's see. In about an hour I can contact about 10 - 15 prospects (over the phone) in my area.

In that same hour I can contact 100 prospects across the world.

Considering that even the best sales force probably only sells to about 1% - 2% of its prospects. I think I'll stick to the web.

Brian

Hmm. I guess you're assuming the only way to promote your company locally is by phone?

What about inexpensive ads in neighborhood papers?
What about flyers?
What about providing free hosting for a local church, charity or organization in return for free publicity?
What about an inexpensive yellow pages ad?
What about handing out a business card to everyone you run into?

Assuming, of course, that you'd have to spend some money with your online promotions, I'd rather put my $$ into local advertising.

But hey, that's just me. However, if online promotion is working for you, who can argue with that? Good for you, keep it up!

Vito

no kidding, local businesses really take it any which way but loose. i started work at a place part time a while back just to help out in a few areas. got chatting about webhosting etc. turns out this is what they spend

one co.uk name 120 pounds for two years
0845 !!!!! dialup 100 pounds a year, theyre paying for a non freecall dialup
and 200 a year for 200 mb and 2 gb with 10 pop boxes. and the host has lost their site every two months like clockwork. why do they stay? cos its simple. they sign the cheque. it all happens and no one needs to think.

lol if your wondering what i did, i just rang up and renegotiated the deal. lets just say it went from about 600 dollars to about 150 :)

Gota Love the locals,

I feel that every company depending on what services you offer, should be presented to the local community first. If the locals enjoy your service, they will tell others, and soon you will have customers from all parts of the world. Its much easier to connect with locals on a personal level, i talk to a few of my clients about whats going on in the area, the new mayor, etc. Building a strong relationship with locals, is easy since you know whats going on, and in return will bring excellent benefits.

How i attract local users is,

pay for ads on google etc, so if example someone from the area types in "voorhees new jersey", my advertisement will come up.

Visit local business conventions, pass out business cards, flyers or whatever you can get your hands on.

Advertise a bit in local news papers/news letters.

Talk about your business with others, and hand them your business card.

Connect with web based local business's, and see if you can each reffer customers.

And (where allowed), post flyers with your purpose and URL. and cut the bottom of the paper in small cuts "please take one".

Get your business REGISTERED in your town, this can bring benefits especially if your town sends out news letters with local registered small business.

If you have the Funds, co-sponsor a small event with a good cause, the locals will see this good deed, and choose you. This one really brings great benefits, and to co-sponsor a co event, is not as expensive as you think. Not to mention, your company name and URL will be over handouts, posters for the event.

I have used all of those with great success, if you want to go really extreme get a magnent advertisement for your car lol, been there done that.


Sorry went a little off topic, but i figured i could lend some assistance for those looking to promote their website to local business. If those methods dont work, nothing will :)

nice tips.
remember word of mouth is king. treat local business very well. pay some special attention to a few if you wish. advertising on the net is one thing. one store owner personally recommending you is worth a trillion times more :)

Hmm. I guess you're assuming the only way to promote your company locally is by phone?

Your right vito, I use a number of your suggestions, and wouldn't quit it for the world. But, as mentioned earlier in this thread somewhere, it seems that the locals could care less about price or even spectacular service. They hate change.

If I were an ISP that would be a different thing. We have a total of about 3 - 4 ISP's in this county and they get all the hosting business. And, keep in mind that the county I live has a population of about 70,000 people, I almost have to market on the web.

As of right now, for the month of May, my site has been visited by almost 40 countries (I haven't checked today yet, so it might be 40 by now). That's hard to ignore.

TTL
Brian