why are Pair dedicated servers so expensive?
 

They are 2-3x more than comparable managed dedicated servers at other companies.

http://www.pair.com/services/dedicated/

Is there something I am missing?

Thanks

Their servers are actually less expensive then other companies such as rackspace. Remember, price isn't always everything in any market. Quality comes at a cost :)

What is it about their service that is above average - hardware, network, support?

Having never used pair.com, I cannot comment from personal experience. But what sets them apart is their level of support, reliability and longstanding reputation as a quality service provider.

Pair targets a different market than WHT-based companies. Their customers are those looking for quality and support. Pair has been around since the beginning of time as a quality company.

I would like to see someone selling a Celeron 2.4 Managed w/ Telephone support for $83.00 a month that is profitable and reputable.

They include full Management Services, 24x7 phone support, and daily backups. For the price for users that want those types of services it is actually good.

Actually telephone support is 12 hrs/day.
Email support is 24x7

http://www.pair.com/services/dedicated/qs1.html


BTW I see QS-1 priced at $249.
Where do you get $83 ?

He said 2 to 3 times more expensive than comparable offers.

This means he knows a reputable company offering Fully Managed Services, 12 hours a day phone support, 24 hours a day email support, and daily backups for $83 to $125 a month.

All numbers aside I was interested in pair.com because I heard of someone who hosted a CMS site on a high volume accounts (HV-1) and it was much faster than other shared accounts I have seen.

Although it is more expensive, there is good service and the performance is there. These are probably good for most companies that need a good shared & managed host.

The answer to your question is a few fold:

1. Different companies have different cost base:
If I provide phone support to all my clients, I need to invest in a telephony solution, staff the phones, overheads involved in siting etc.

If I hire qualified techs with years of experience, I need to pay market rate salaries which can be up to 50K per annum for better techs.

If I use rackmount hardware designed for racks with, I need to pay a slight premium on the cost.


2. Different companies have different profitability measures.
If I am not a one-man show running from a home office, I may have investors, shareholders etc who demand a certain margin of return and I need to meet those measures to satisfy them.

If I have certain measures, I need to gain a payback on capital utilised quicker i.e. hardware may need to be paid for within a shorter period of time.


This is a simplified answer without even considering quality of service (although that is implicit in some of the points above). But it tells you it's not as simple as it seems.

WHT is only a tiny market in terms of hosting, and MOST providers charge much more than the average hosting company on WHT. There are many factors which effect cost, including bandwith, location, staff, power, etc.