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Thread: Is 6.99 per month too much?
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06-01-2011, 11:20 AM #1WHT Addict
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Is 6.99 per month too much?
Hi everyone,
I am starting my web hosting company and I would like to know if the starter package at $6.99 is too much.
I would be proposing :
10GB of Disk Space
100GB of bandwidth
and so on...
I would like to precise that I will not be overselling at all.
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06-01-2011, 11:49 AM #2Web Hosting Guru
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I think it's a reasonable price for the resource you are offering...
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06-01-2011, 11:54 AM #3WHT Addict
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Ok thanks!
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06-01-2011, 11:59 AM #4New Member
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thats a really good price
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06-01-2011, 11:59 AM #5Web Hosting Master
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Don't feel pressured to have low prices because some of the big players in this industry do. Charge what you think your business and support can handle. If you can't turn a profit, nor pay to have reasonable support at $6.99 then bump it up a few dollars. There are many, many people out there who don't mind paying a fair amount for web hosting so long as your service matches what you're asking.
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06-01-2011, 12:01 PM #6WHT Addict
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Oh ok! So it doesn't seem too much? And $14.99 for 100GB of spae and 1000 GB bandwidth, what do you think about that?
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06-01-2011, 12:06 PM #7Web Hosting Master
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That last one sounds too good to be true, how can you provide that if you do not oversell?
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06-01-2011, 12:09 PM #8WHT Addict
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I won't have many clients on every server. I am really wanting to not cheat the clients and propose them something that they will really have!
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06-01-2011, 03:50 PM #9WHT Addict
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100GB for $14.99 is silly.
Lets be honest you are running a company, you need to turn a profit in order to continue to run and expand, provide support etc.
Lets say your renting a server for $99.99 and you would need a 1.5TB hdd or greater in order to just provide 10 customers hosting. All for $50/month profit. Then minus off your time any additional licences (cpanel/plesk) and you are left nothing.
Then you have to think about backup solutions, additional support staff etc.
IMO of course you are much better to go down the route of providing a much more complete service, say 25/30GB Space for $14.99 but also include extras as in daily backups etc. In reality very very little numbers of customers require such large space and people are becoming more aware that these unlimited and hundreds of GB's of storage for next to nothing tends to mean either 1. oversold service or 2. no long term business plans.
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06-01-2011, 04:55 PM #10WHT Addict
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Ok so I will go lower, you are right! So 30GB of space for 14.99.
The thing is, with all the competition, can I get any customers?
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06-01-2011, 04:57 PM #11Retired Moderator
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Oh ok! So it doesn't seem too much? And $14.99 for 100GB of spae and 1000 GB bandwidth, what do you think about that?
That being said, with the right TOS clauses that basically enable you to terminate any account that's trying to take full advantage of the offer, it can be done. It's what all budget hosting providers are doing these days.
Personally, I think you're choosing a middle route and you risk to position yourself wrong in the market. $14.99 isn't seen as "cheap", so you won't stand a chance to compete effectively against the budget hosting providers out there (which is what the 100GB and 1000GB seem to suggest to be your goal).
So, either go budget and sell the big plan for $6.99, or sell the small package for something like $25, and focus on quality, both in your presentation and in reality.
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06-02-2011, 05:14 PM #12Web Hosting Master
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Believe me, the one-dollar-a-month-buys-it-all hosts don't get too many customers either and once they do both customers and hosts aren't too happy and the former try to leave because of the poor service and the latter try to sell because of the lack of profits and perspectives. It isn't a viable business model and it hurts the more serious part of the industry.
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06-03-2011, 02:16 AM #13WHT Addict
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Ok! Thanks all of you for your input! It really helps me a lot!
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06-03-2011, 07:39 AM #14Junior Guru
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06-03-2011, 11:47 PM #15Junior Guru Wannabe
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not at all, most people charge 6.99/month for 50mb diskspace and 500mb bandwidth.. your offering way more than most.. i'l sign up for your service if you had cpanel and all the standard features most webhost have...
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06-04-2011, 02:01 AM #16Web Hosting Guru
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Don't even look at other people prices, just set a price that you feel comfortable and get profit at the same price, focus on the support you will offer.
Will highly recommend looking for clients locally in your area people that know you for your first customers.█ Offshore Hosting & High Privacy in Panama
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