Web Hosting Talk : Advertising Forums : Community Reviews : Other Reviews : Do these prices sound good?

[steveTobb]

Do these prices sound good? or should they be altered?

Shared
350MB | 5GB --> 3.49 month / 35 year
500MB | 10GB --> 6.99 month / 70 year
1500MB | 20GB --> 9.99 month / 100 year
3500MB | 50GB --> 19.99 month / 20year

Reseller
5GB | 70GB --> 28.99 month / 290 year
6.5GB | 90GB --> 39.99 month / 400 year
8GB | 110GB --> 47.49 month / 475 year
10GB | 130GB --> 59.99 month / 600 year
15GB | 200GB --> 89.99 month / 900 year

Please tell whetere you think these prices are too high or too low or just right.

Thank you,
steveTobb

[nipl]

Hmm...99.999% guaranteed uptime and you've launched on 1st Nov 2003. Are you sure you are upto 99.999% uptime

I was just checking the VERIO.com website and inspite of being so so huge, they can only bring themselves upto 99.9%, and EVEN that has a "*" at the end, which means fineprint somewhere.

Offering realistic prices and realistic expectations to customers is what counts towards your overall sincerity. Don't drop in either if you're starting out.

We have been web hosting since May 1999 and settled down on a safe uptime of 99% considering our current resources. Even with this, planned maintenance is excluded...I can't even think about 99.999% and neither can Verio.com

[WCHost]

Well,
if you are looking for loyal business company to join your hosting...pull your prices up!

[Acsiak - Andrew]

Hi there Steve,

I certainly hope you were joking with your reseller packages. Reseller packages are normally more expensive than shared, and with a lot of hosts are minimum $1 for 1GB bandwidth and 100mb space, while the shared hosting plans will be a lot cheaper. Your reseller packages are way too low - I totally recommend bringing them up.

Your shared, some interesting things there - but your last one needs a price increase. I'd really say increase all your prices in actual fact, you need to make a profit - with no overselling and on the cheapest server I know of, with your last shared package if you filled up with only that you'd make about $300 profit and that doesn't include the CC charges and taxes if you do register as a real company and aren't just another basement/kiddy host.


Also, about the 99.999% uptime - specify whether it is network or server. If it's network, that is fine since I presume you do state that you do rent servers from someone else.

Hope this help.

[eachone]

350MB | 5GB --> 3.49 month / 35 year ?????
Nowaday customer very smart. Lower price doesn't mean you are good. Definatedly need to pull the prices up 4x and offer better support. You then have a chance to drop it later when it grows...

[steveTobb]

Yea, but i put this on a 300$ profit, which is good for starts.

Any more advice?

How much profit should we be making?

-thanks,

[RRN]

Originally posted by steveTobb
Yea, but i put this on a 300$ profit, which is good for starts.
Any more advice?

OT, but your "xeoHosting Help Desk" is not working.
I hate when it happens to me...
but it happens, so...

As for advice,
as a customer, I want to have superb support, not low prices...

hth

[steveTobb]

Right, we are getting kayako soon as well.

-steve

[Akash]

Moved to Other Reviews

[Acsiak - Andrew]

Regarding the profit per server - never over sell, and make sure to remember that.

Me, it depends. If support is limited - for example only three days per week, then $200 profit per server is great and $300 is even better. Although, for giving real support at say 24/7 you should make at minimum $1,250 profit per server and possibly $1,500 per server - for me, offering 24/7 support, I'd expect nothing less than $1,600 per month.

It really depends how much you want. The above is really only a suggestion and my choices.

Hope this helps.

[Mark_TVI]

There is no possible way to tell if those prices are good for you or not. You have not listed any costs, no overhead, nothing to help formulate a pricing strategy. If you want to price out some hosting plans, start by listing all your costs and I don't mean how much you pay for your server.

1) Support staff wages (even if you're a one man show you don't do this for free, use a hard number here)
2) Server costs
3) Server administration costs
4) Operating overhead (your internet connections, computers, phones, power, etc)
5) Software costs (gateway integrations, Help desks, Client management, etc)
6) Credit card processing fees (Merchant account costs, gateway fees, etc)
7) Advertising costs (local or internet there should at least be a budget number for this)
8) Taxes and accounting costs



There are a hundred more items one could probably add to this list. My suggestion would be to add them all up, and using some planning and forward thinking come up with a cost per gb. Then you add in your profit margin and you would be in a better position to come up with a stable pricing scheme.

[Vox Hosting]

Yes, if you run a dedicated server then you will barely scrape along. Higher your prices if you want people to take you seriuosly and if you want to be around a while.