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  1. #1
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    * Should we raise our prices on reseller hosting?

    Time to time I hear that our pricing to too low and scares off potential clients. For over a year, Ive been contemplating to raise prices for new accounts 50 percent. Would this give more trust to potential clients?

    Any input would be greatly appreciated.
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  2. #2
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    Don't worry too much about the pricing being too low
    Instead compare the specifications and prices against your main three competitors

    I started off in 1998 with packages at nearly £100 per year
    As the overhead costs decreased so did this price

    Whilst I do agree that low pricing can put some customers off providing you have been trading for several years there is no issue
    One thing my customer questionaires consistently returns is that new and/or existing customers do not like short-term discounting and would rather have long-term pricing

    However, those customers with 5 or more accounts appreciate a small discount, and this is where upselling them Reseller hosting has its place
    The customer therefore sees a price discount, in turn your costs reduce slightly
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  3. #3
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    That's up-to you and your business plan, I don't think anyone can tell you that your too low or too high. You pay for what you get, and you need to make a living, pay bills, etc it all adds up.

    I recommend what m8internet said and look at your main competitors.
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  4. #4
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    I can definitely see where unrealistic hosting packages combined with cheap prices could be a concern for serious users. With that said, your plans don't appear alarmingly low priced, at least to me. If you were offering 100GB for $5 a month, I'd consider that a red flag.
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  5. #5
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    I dont think I have ever heard anyone ever say they are not going with a service because the price is too low. However if you drop your price too low, the market will eventually perceive your product as being inferior. With that being said, its very difficult to price match in the web hosting industry because you have so many huge extremes when it comes to price ranges. I think someone already set it, charge what you need to charge in order for your business to survive and stick to it.
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  6. #6

    Increase prices

    I have increased prices by 5% on my reseller store, they were too low as compared to my offline competitors. After increasing sales are still steady.

  7. #7
    As a current customer or EZPZ, I am here again evaluating a new place to go. The reason being they recently increased prices, and the increase was significant.

    When I began the search, I looked at price first, but once I narrowed that down, I search for REAL feedback from customers. Not from the fake review sites out there. It was harder, but worth it. I had it down to 3 hosts and chose EZPZ at the time.

    Overall I have been satisfied with them. Their Up-Time had been VERY good for the server I am on. But nothing is perfect,. and with the sharp price increase, I am looking again at my other two choices.

    So, if you have some loyal customers, you may be causing yourself more harm than good.

    To be honest, just saying your "considering" a 50 Percent increase in a post like this might scare people searching for a new host away, thinking "When is it coming??"....

    JMHO from a customers point of view....

    Will be watching for your decision
    Last edited by ChicksHateMe; 12-14-2013 at 12:00 PM.

  8. #8
    You are right 50% increase is too much. You can lose a lot of customers with a 50% increase. Increase by 1% then observe, if sales are steady increase by another 1%. Keep your price below your competitors.

  9. #9
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    We have never put ours prices up since we started, but some customers do say its to cheap for the service they get.

    But 50% is to much and i think some of your customers would leave.
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  10. #10
    Quote Originally Posted by victormeldrew View Post
    We have never put ours prices up since we started, but some customers do say its to cheap for the service they get.

    But 50% is to much and i think some of your customers would leave.
    If the profit is still OK, then you do not need to increase. If you want to increase one day, you may just test them by telling them that you are thinking of increasing by 1%, then hear how they react.

  11. #11
    If u r in industry long enough and assuming u have enough clients
    I think you already have a brand value however that large or small is increasing the price too much can put them off
    Although regular price increase is advisable

  12. #12
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    Quote Originally Posted by ChicksHateMe View Post
    As a current customer or EZPZ, I am here again evaluating a new place to go. The reason being they recently increased prices, and the increase was significant.
    They increased their prices by one pound.

  13. #13
    Quote Originally Posted by AcclaimedHost Alan View Post
    They increased their prices by one pound.
    I now wish I hadn't have mentioned EZPZ directly, but they are one host I am with. And of all the ones I have been with, they seem to keep the servers running fast and smooth. They have great reviews and are extremely responsive.

    That said, I am in USD, so a yearly plan went from about $48.00 to $64.00. An increase in $16.00 or 33%. I think 33% is significant. Especially having only started there within the last year and having started referring and transferring clients there.

    Too big an increase in the short period I've been there.

    So. relating to the OP's question, it is significant enough to make someone consider moving away, and them losing clients.

    The OP should also do a search on themselves, and see what type of reviews and credibility they already have. If it looks like they have great credibility and a positive following, without many things that would be conceived as negatives by a potential customer, then maybe they are worth the increase. I won't comment on what I read, and what I would think. We all need to decide what's best for us on our own.
    Last edited by ChicksHateMe; 12-16-2013 at 06:33 AM.

  14. #14
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    Quote Originally Posted by ChicksHateMe View Post
    I now wish I hadn't have mentioned EZPZ directly, but they are one host I am with. And of all the ones I have been with, they seem to keep the servers running fast and smooth. They have great reviews and are extremely responsive.

    That said, I am in USD, so a yearly plan went from about $48.00 to $64.00. An increase in $16.00 or 33%. I think 33% is significant. Especially having only started there within the last year and having started referring and transferring clients there.

    Too big an increase in the short period I've been there.

    So. relating to the OP's question, it is significant enough to make someone consider moving away, and them losing clients.

    The OP should also do a search on themselves, and see what type of reviews and credibility they already have. If it looks like they have great credibility and a positive following, without many things that would be conceived as negatives by a potential customer, then maybe they are worth the increase. I won't comment on what I read, and what I would think. We all need to decide what's best for us on our own.
    $16 is approx £9.80 that's a bit more than a pound which is about $1.60. And I agree with you, the op needs to devide for themselves, however we can assist them with any questions.
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  15. #15
    Quote Originally Posted by CW Mike View Post
    $16 is approx £9.80 that's a bit more than a pound which is about $1.60. And I agree with you, the op needs to decide for themselves, however we can assist them with any questions.
    Sorry, I didn't mention I usually pay per year. The prices went from £29.90 to £39.90 per year, so £10 is about $16.30 USD, per year. That's why, to me, it is significantly higher. The exchange rate magnifies the difference.

    So I am reconsidering things now. More due to the cost than the service, but there are other factors as well.

    We all have an idea of what our time and services are worth, but competition can sometimes force us to take less. It would be a shame to anger current or potential customers for some reason or another and reduce income even less. I think such a huge price jump would do just that.

  16. #16
    Join Date
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    Looking at your site your prices do seem very cheap, I don't have a problem with you prices, but I think you site feel slightly 'cheap' especially with the flashing order now button

  17. #17
    pricing to too low and scares off potential clients. no is not so infact i think the vps ar on the high price the only thing what wil scare me is the UNMETERED bandwith and disk space
    fore cpanel alowed is oke even for level 1 and 2
    say if u put 50 gb diskspace and 250 gb is much beter than UNMETERED think alot of people get tired of that unlimted and UNMETERED.
    the best host for me is just say what i wil get instead of unlimted
    whmcs billing systeem need olso be a add on when i order it dont see it in the list
    enable overselling is a very big and big plus for me .
    becas i dont call it overselling i cal it i pay and choose a pack 25 gb diskspace
    than i olso whant max 25 gb diskspace
    ther for i think olsocpanels alowed need to be no limited
    becas i oder 25 gb and 125 diskspace and how i dived it is up to me .
    and when i compare u to a other reseller they just have differnt packs and prices
    but it is around the same 50 gb 500 gb for 24$
    and between u reseller acount and master/alfa acount is a big price differnt
    all get 10 gb diskspace 50 gb bandwith but the price is dubbel
    so when i take a alfa pack mijn resellers will get much less

    but overall nice website only think and maby it just me
    but everytime when i click on a link a new page is open
    but see a split sec a white blank page.

    wil order surently a pack but not the unmeterd one
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  18. #18
    No, i think you should keep them. In this competition its all about getting clients and most of them want low prices.

  19. #19
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    Thank you for your input everyone, I greatly appreciate it.
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  20. #20
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    Quote Originally Posted by Underxman View Post
    No, i think you should keep them. In this competition its all about getting clients and most of them want low prices.
    This rule applies only if you are new in market.
    Once you have sufficient number of clients and good reputation, you can increase price to a reasonable level to make some profit.
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  21. #21
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    Quote Originally Posted by JixHost View Post
    Thank you for your input everyone, I greatly appreciate it.
    May I ask if you made a decision? I'd be interesting to know

    And did you plan increasing it for active customers as well? or only new orders?

    If you decided to increase them maybe you can try making some special offers to lower the initial impact and make it a smooth transition

    Regards

  22. #22
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    Ultimately it's your business and your decision. There are segments of the market to be served in both the higher and lower ends of every market. Which piece do you want?
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  23. #23
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    Quote Originally Posted by Chris-WS View Post
    May I ask if you made a decision? I'd be interesting to know

    And did you plan increasing it for active customers as well? or only new orders?

    If you decided to increase them maybe you can try making some special offers to lower the initial impact and make it a smooth transition

    Regards
    If I were to raise it, it would only be for new clients coming in. Existing clients would be grandfathered.
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  24. #24
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    Quote Originally Posted by JixHost View Post
    If I were to raise it, it would only be for new clients coming in. Existing clients would be grandfathered.
    Bingo. In our 12 year history we've never raised hosting fees for existing clients.
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