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  1. #1

    Advice needed for setting prices for hosting services

    I am new to reseller web hosting and am in the process of setting up a Hostgator reseller account with WHMCS. Does anyone have advice or know if there is a guide out there on setting prices for web hosting plans? I was thinking of setting up maybe Bronze, Silver and Gold plans, or something similar with different levels of disk space, bandwith, number of email accounts, etc.

    It would be helpful to know what the industry standards are among reseller hosting companies for setting prices and marketing products. This information has been difficult to find.

    Thank you!

  2. #2
    Join Date
    Apr 2003
    London, UK
    There is no standard.

    Your pricing should be based on your own costs, and your business plan.

    If you just blindly run with something others are offering you'll either be selling at a loss, or unless you're offering some unique value add, just not be competitive and gain no clients.

  3. #3
    It all depends on your niche, your costs, and what kind of customers/market you are going to hit. So set your packages and pricing according to your needs.
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  4. #4
    Join Date
    Dec 2011
    Surrey, BC
    There are no standards, there are providers who offer as little as 100mb of space while others offer unlimited of everything.

  5. #5
    Join Date
    Apr 2009
    New York City
    There are or was never no standards and will never be any. It all depends on how you want to market your services and run your business there are no rules other than don't scam your customers. It is up to you to provide good services and customer support.

    Setting prices is where you have to sit down and build your margins and set your profit and goals what not. You should look at other hosts see what their prices and plans look like compare and see if you can make better or reasonable plans that will compete with them but make you money.

  6. #6
    Quote Originally Posted by Bassman1956 View Post
    I was thinking of setting up maybe Bronze, Silver and Gold plans
    I would recommend whatever you do not to name your plans with olympic medals. Try can come up with something creative.

    If you are just starting out and if you have another income your main objective should be to gain clients and build reputation within the early days of your business after that you can start thinking about profits.

    As for the price there's really no magic formula. You have to play with different prices and keep the best level that works for you. Normally what we do is start with a higher price and lower it till clients are comfortable with it. But if you are a smaller company I think you might be better off with the other way around starting with a smaller price.
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  7. #7
    Join Date
    Mar 2003
    Moved > Running a Web Hosting Business.
    Specially 4 You
    JoneSolutions.Com ( Jones.Solutions ) is on the net 24/7 providing stable and reliable web hosting solutions and services since 2001

  8. #8
    Join Date
    Nov 2010
    Las Vegas
    It all depends on what type of client you are aiming for as well as your monthly running cost. I think that some prices work for some and then some have a lot of trouble with the same type of pricing. You can compare packages and pricing to what you would consider your "competition". You also may need to reevaluate your pricing and packages a few months after you open to see where you are growing and not growing.
    HostClearly Web Hosting
    Shared, Reseller, and VPS Hosting since 2010!

  9. #9
    Join Date
    Jul 2010
    depend on you you could try compared your package with couple webhost to try beating competition

  10. #10
    Join Date
    Jun 2013
    Think about your target clients and their needs and from there you will build the plans - in what regards the resources. The price can be build based on the cost you have with the webhosting plans and the quality and add-on services that you are able to bring into the game.

  11. #11
    Think about the niche or group of individuals you are trying to target; do you want to cater to a market that values the cheapest hosting possible or a segment that values VIP treatment? Only you can answer that question.
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  12. #12
    Think about supply and demand for your product. Is it unique? If yes you can charge more. Are other million hosting companies offering the same thing? Then you will have to charge less to atract new clients.

    Setting the right pricing is a very important issue for a company's products and services. You will have to learn with trial and error what is the formula that works best for you.
    Infinitum Technology Co., Ltd.
    Hong Kong Hosting

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