But the best thing is to analyze plans of your competitors in your area and try to facilitate your customers more than them. Remember, support is the main part of this hosting company. Provide best possible support because happy customers always refer your company to others.
Don't focus on the price point too much or even what your competitors are doing. Just because "Host A" and "Host B" does "this" for "that much" doesn't mean you need to (or can) do the same.
You need to deliver a solid product, and as a reseller the only area of the service you offer that YOU can constantly improve on is the quality of your support, marketing and outreach. Without control of the server, its up to choosing a quality reseller provider to maintain the integrity of the actual hosting service.
So, you need to figure out WHO you want to sell to and HOW. Just offering gobs of space/transfer for a low rate isn't going to be sustainable long term. Its easier to manager fewer clients paying more each month as opposed to more clients paying next to nothing. You'll find (usually) the ones who are paying more are more interested in the quality of the service as opposed to just getting the lowest monthly price. Usually, they're more knowledgeable and require less support. So long as the service quality and uptime is great, they're happy. The exact opposite is common in the low-budget market, new webmasters who "want" $1/mo unlimited hosting for their first website. You'll be answering tickets all day, dealing with fraudsters, trying to read emails/messages/tickets in poorly written English, etc. At the end of the month, you'll find there is a ton of effort for little reward. Where is the money to upgrade your service? To advertise? How are you going to handle all these extra tickets? How are you going to keep these clients happy when they just move to someone who offers MORE for LESS?
Just some food for thought
Last edited by MannDude; 03-11-2011 at 03:09 AM.
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Why set your prices so low? The goal of any business is to be profitable, so set your plans accordingly. Focus on quality instead of pricing, and people will buy your product. This includes everything from your website, perception of your brand, the quality of your customer service, reliability, and many other things.
$2/month for a hosting plan is not sustainable, you will either go out of business or be forced to raise you prices. When you're forced to raise your prices, how do you think your customers will feel about that?
If you sell just one of those hosting plans for $10 instead of $2, you're already making the same amount of profit with one customer than you are with 5.
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Thank you for all answers. These we will remember:
You'll find (usually) the ones who are paying more are more interested in the quality of the service as opposed to just getting the lowest monthly price. Usually, they're more knowledgeable and require less support.
If you sell just one of those hosting plans for $10 instead of $2, you're already making the same amount of profit with one customer than you are with 5
Provide best possible support because happy customers always refer your company to others.