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
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.
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