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Acceptable prices?

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  #1  
Old 03-20-2004, 09:08 AM
IceKickz IceKickz is offline
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Join Date: Mar 2004
Posts: 40

Acceptable prices?


Hi everybody.

I was wondering if you could give me some price tips.
I'm currently having.

Package (Diskspace/Transfer)

Bronze 50MB/1GB
Monthly cost: $4
Semi-annual cost: $21
Annual cost: $39

Silver 100MB/2GB
Monthly cost: $7
Semi-annual cost: $39
Annual cost: $75

Gold 250MB/5GB
Monthly cost: $13
Semi-annual cost: $75
Annual cost: $147

Platinum 500MB/8GB
Monthly cost: $19
Semi-annual cost: $111
Annual cost: $219

I've seen a lot of places with much "cheaper" prices, but is this too expencive for a rock-stable hosting package? (Quality over quantity)?

Server located in The Planet

In advance, thanks

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  #2  
Old 03-20-2004, 09:48 AM
openXS openXS is offline
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Join Date: Mar 2004
Posts: 990
A bit high. !

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  #3  
Old 03-20-2004, 10:01 AM
Fujiwara Takumi Fujiwara Takumi is offline
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Join Date: Dec 2002
Location: opposite lock
Posts: 934
well i dont consider myself cheap by any means. ...this is high. you do what you gotta do to set yourself apart and you can sell at these prices...but a lot of people will throw those prices right in your face. i know they do it to me.

$8/month == 150m/3gig
$12 == 300/5
$18 == 750/10

at least i think thats what i finally settled on. thats with what i consider great support, willing to do some customers websites, install applications, troubleshoot code, and in general be a good friend and hold their hand...so

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  #4  
Old 03-20-2004, 10:20 AM
Vortex-Steve Vortex-Steve is offline
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Join Date: Feb 2002
Location: Reading, England
Posts: 4,243
Your prices are fine. If you are going to be providing a stable place for people to host, and give excellent support then it is very good value for money.

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  #5  
Old 03-20-2004, 10:21 AM
IceKickz IceKickz is offline
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Join Date: Mar 2004
Posts: 40
New prices

Package (Diskspace/Transfer)

Bronze 50MB/1GB
Monthly cost: $2
Semi-annual cost: $11
Annual cost: $20

Silver 100MB/2GB
Monthly cost: $4
Semi-annual cost: $22
Annual cost: $40

Gold 250MB/5GB
Monthly cost: $10
Semi-annual cost: $50
Annual cost: $90

Platinum 500MB/8GB
Monthly cost: $15
Semi-annual cost: $80
Annual cost: $150

better? or still to high?

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  #6  
Old 03-20-2004, 10:45 AM
openXS openXS is offline
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Join Date: Mar 2004
Posts: 990
High Though...I know a reliabe host which gives 50MB/1GB
Monthly cost: $1..

but not bad too..

this might be good until you want to get more customers

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  #7  
Old 03-20-2004, 10:54 AM
Rman2003 Rman2003 is offline
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Join Date: Dec 2003
Location: ./Southest Missouri
Posts: 601
I personally wouldn't even bother with a plan under 4.95/month. Sure, you can find hosting cheaper elsewhere, but I don't particularly care to cram hundreds of accounts on a server to make a decent profit. Web Hosting, like anything else is a business. Sure, customer satisfaction should be your number one priority, AFTER making sure the bills are paid. How happy do you think your clients are going to be when you can't foot the bill for the server next month? Just my opinion. YMMV.

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  #8  
Old 03-20-2004, 11:02 AM
openXS openXS is offline
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Join Date: Mar 2004
Posts: 990
hmm..maybe you're right..there is an option..dont give it too cheap nor too high..the new prices are right. Get going !

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  #9  
Old 03-20-2004, 11:10 AM
Vortex-Steve Vortex-Steve is offline
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Join Date: Feb 2002
Location: Reading, England
Posts: 4,243
Once you take out credit card fees, the cost of the transfer and space you are giving them you will be making so little profit any support time you need to give will be losing you money.


OpenXS, a $1 is not even worth bothering with. Sure maybe it will bring it a few customers, but you will not be making any money off them. For most hosts that would lose money because they do actually have other costs than just the server

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  #10  
Old 03-20-2004, 11:19 AM
tensixteen64 tensixteen64 is offline
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Join Date: Apr 2002
Location: Southern Maryland
Posts: 246
Many companies use the following formula for pricing, maybe this will hlep you IceKickz

price x 40=profit margin for MB
price x 800 = profit margin for BW

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  #11  
Old 03-20-2004, 11:21 AM
IceKickz IceKickz is offline
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Join Date: Mar 2004
Posts: 40
Thank you for all your tips.

Ill try out the formula Southern Gal. Thank you

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  #12  
Old 03-20-2004, 11:23 AM
tensixteen64 tensixteen64 is offline
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Join Date: Apr 2002
Location: Southern Maryland
Posts: 246
Welcome IceKickz...good luck!

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Sara Nelson Photography Preserving your moments since 1973.

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  #13  
Old 03-20-2004, 12:13 PM
pmabraham pmabraham is offline
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Join Date: Dec 2001
Posts: 5,221
Greetings:

I often wonder when I see threads like this with people posting, "too high, go lower," if such people are trying to sucker the thread starter into going down the tubes.

From what I see in the market place, and mabye I need newer glasses than the ones I have on, the reputable companies often charge around $20 per month.

And then you have WHT posts stating $1 per month... sigh.

Pricing cannot be based on pure technology costs <smile>.

Thank you.

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  #14  
Old 03-22-2004, 12:31 AM
DSD DSD is offline
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Join Date: Dec 2001
Posts: 506
If you are going to provide good support and uptime, I would not go lower than $5 a month. You're going to lose at least $1 a month on credit card fees.

Make your largest account bigger, with a higher price tag. Most businesses will purchase your largest account, so put it well over $20.


I've noticed that the people that are willing to pay more money, and are not shopping based on price are usually better customers (more mature, less likely to jump ship if there are problems).

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