Results 1 to 16 of 16
  1. #1
    Join Date
    Mar 2004
    Location
    San Diego, CA
    Posts
    540

    Good Value vs. Cheap

    A lot of people use the term cheap hosting. To me, the word cheap is bad. It means that the cost is very little but I also would expect the product to be cheap too. If someone said "check out this cheap car" I would expect it to be a piece of junk.

    Using the terminology "good value" seems to have a much better meaning behind it.

    Why would hosting be any different?

  2. #2
    Join Date
    Aug 2003
    Location
    Vancouver, BC
    Posts
    1,891
    I prefer cost effective myself.
    Gary Jones

    BlueFur.com - Canada Web Hosting

  3. #3
    Join Date
    Mar 2003
    Location
    Kathmandu, Nepal
    Posts
    3,937
    I have seen 'most bang for the buck' commonly used.

    cheap does have that negative connotation, yet people still seem to like cheap things... even if they are poor quality. Can't change human nature to want to pay very little
    Kevin Ohashi - Founder of ReviewSignal.com - Honest Web Hosting Reviews
    Check out our WordPress Hosting Performance Benchmarks (Updated: Sep 2016), the most comprehensive look at WP performance

  4. #4
    Join Date
    Oct 2003
    Location
    Tas, Australia
    Posts
    2,488
    I usually steer away from hosts who use the term cheap. I prefer almost any other thing: Affordable, Inexpensive, Value for Money...
    New site: www.talkutas.com

  5. #5
    Greetings:

    Economical hosting can be a good value.

    However, if you read WHT for more than a year, you will see regular threads such as:

    * How long have you been with your current hosting provider (average appears to be six months)?

    * How many hosting providers have you used over the years (I've not taken an average, but if years and an average stay of six months or less, do the math)?

    * Why is it so hard to find good hosting?

    And the like.

    The common theme is most of the customers of hosting for those threads are with companies who charge less than $15 per month (or a lot less) or whose resources for a given plan are "too good to be true" for any price (for example $25 per month for the same resources of a dedicated, but on shared hosting).

    That is "cheap" hosting.

    The sad part of the story goes like this analogy:

    There are one hundred grocery stores in the city where you live. At least 75 of them have a gallon of milk for a quarter. The remaining (less than 25) sell a gallon of milk for between $1 and $2 per gallon.

    You have people will go to one store and pay a quarter, get sick or otherwise throw out the milk. And go from $0.25 store to $0.25 store getting sicker or otherwise throwing out the milk.

    All the while complaining that no one sells good milk; and losing faith in the milk industry.

    And during the process not once stating, “maybe the problem is my budget, and I should try the $1 or $2 for a gallon of milk.”

    In the past year, you have hosting customer after hosting customer seeking value in very cheep pricing (whether it be cheap based on resources for the price or just place price), getting little value, and then moving on to another “cheap” provider thinking one day they may get lucky and have “good value” for the money.

    Not once thinking maybe something is wrong with their budget.

    Thank you.
    ---
    Peter M. Abraham
    LinkedIn Profile

  6. #6
    Join Date
    Apr 2004
    Location
    Bulgaria
    Posts
    159
    Many people don't realise that when they go whith a cheap host, the money they save from the price of hosting is ususally less than the money they loose due to downtime. So cheap hosting can get expensive
    Solid-Hosting.net - affordable multiple domain hosting solutions
    Reliability and Customer Service are our focus!

  7. #7
    Well I bet that there is Cheap and Quality at the same time... Everything has it's pros and cons.. I personally would go with Cheap, but Quality..

  8. #8
    Join Date
    Mar 2004
    Location
    San Diego, CA
    Posts
    540
    dynamicnet, the milk anology was perfect. Your right, it's amazing that people will have spoiled milk over and over

  9. #9
    cheap hosting dosent necessarily mean bad service. Granted the majority of it does... I offer cheap hosting ($1/mo -- and I'm removing my sig I dont want this to be an advertisement for me), but I also offer the best service I can. Minimal downtime, AIM live support, toll-free support.

    Granted the cost is a dollar, but I believe in a few things. First someone is more willing to try a service for $1, then if it's suitable, possibly upgrade the account. If they don't like it, it's only $1 lost, no contract, no hidden fees, no setup, etc. For a budding hosting company you just never know. I'm more than willing to answer my phone or IM's tol help out my clients. We've grown from 0 users a month ago to 56 domains currently hosted. During that time, about 10% of the users did $1 for a month, and have upgraded to a higher plan or reseller plan after checking the service.

    I fully understand how you get what you pay for most of the time, but I'm trying to change that at least for my company. Lost leaders in the beginning can normally end up a decent profit a few months down the road.

  10. #10
    Join Date
    Mar 2004
    Location
    San Diego, CA
    Posts
    540
    No, cheap doesn't necessarily mean bad service but there is more likely a chance of bad service. I cannot even imagine how many accounts it takes to make a good profit at $1. I personally would have difficulty paying that little and thinking anything but "cheap" in every way. If you are able to make a good business out of that, then great. It just seems diffiuclt.

  11. #11
    Join Date
    Mar 2003
    Location
    Kathmandu, Nepal
    Posts
    3,937
    difference between milk and hosting is one is regulated.
    Kevin Ohashi - Founder of ReviewSignal.com - Honest Web Hosting Reviews
    Check out our WordPress Hosting Performance Benchmarks (Updated: Sep 2016), the most comprehensive look at WP performance

  12. #12
    Join Date
    Mar 2000
    Location
    San Antonio, Texas
    Posts
    3,689
    Originally posted by dynamicnet
    Greetings:

    Economical hosting can be a good value.

    However, if you read WHT for more than a year, you will see regular threads such as:

    * How long have you been with your current hosting provider (average appears to be six months)?

    * How many hosting providers have you used over the years (I've not taken an average, but if years and an average stay of six months or less, do the math)?

    * Why is it so hard to find good hosting?

    And the like.

    The common theme is most of the customers of hosting for those threads are with companies who charge less than $15 per month (or a lot less) or whose resources for a given plan are "too good to be true" for any price (for example $25 per month for the same resources of a dedicated, but on shared hosting).

    That is "cheap" hosting.

    The sad part of the story goes like this analogy:

    There are one hundred grocery stores in the city where you live. At least 75 of them have a gallon of milk for a quarter. The remaining (less than 25) sell a gallon of milk for between $1 and $2 per gallon.

    You have people will go to one store and pay a quarter, get sick or otherwise throw out the milk. And go from $0.25 store to $0.25 store getting sicker or otherwise throwing out the milk.

    All the while complaining that no one sells good milk; and losing faith in the milk industry.

    And during the process not once stating, “maybe the problem is my budget, and I should try the $1 or $2 for a gallon of milk.”

    In the past year, you have hosting customer after hosting customer seeking value in very cheep pricing (whether it be cheap based on resources for the price or just place price), getting little value, and then moving on to another “cheap” provider thinking one day they may get lucky and have “good value” for the money.

    Not once thinking maybe something is wrong with their budget.

    Thank you.
    Greetings dynamicnet
    You are so correct and as always offer a great response.
    A little I know but I always enjoy reading your posts.
    HostCaters.com - Quality Web Hosting - Under A Gig! - Since 1999

  13. #13
    Join Date
    Apr 2004
    Location
    Bulgaria
    Posts
    159
    Originally posted by goihostdotco
    I personally would go with Cheap, but Quality..
    Who wouldn't?

    Cheap and quality hosts are hard to come by. The point I made was that 5-10 more bucks a month isn't such a great difference to risk your site's proper functioning.
    Solid-Hosting.net - affordable multiple domain hosting solutions
    Reliability and Customer Service are our focus!

  14. #14
    Originally posted by iblive
    No, cheap doesn't necessarily mean bad service but there is more likely a chance of bad service. I cannot even imagine how many accounts it takes to make a good profit at $1. I personally would have difficulty paying that little and thinking anything but "cheap" in every way. If you are able to make a good business out of that, then great. It just seems diffiuclt.
    it is difficult to profit on just $1 accounts. we also have value added services, and other hosting plans. only about 50% of the customers we have are on the $1. as for profit, I don't think I've done too bad, on a yearly point of view from the first 1.5 months we've been marketing online and with just those customers, we've managed to cover the server cost, and profit about $400 a year. Granted that's not much looked at monthly, but a $400 profit a yeaer within only 1.5 month's time isn't too bad.

  15. #15
    Join Date
    Oct 2003
    Location
    Youngstown, OH USA
    Posts
    47
    Originally posted by dynamicnet
    Greetings:

    Economical hosting can be a good value.

    However, if you read WHT for more than a year, you will see regular threads such as:

    * How long have you been with your current hosting provider (average appears to be six months)?

    * How many hosting providers have you used over the years (I've not taken an average, but if years and an average stay of six months or less, do the math)?

    * Why is it so hard to find good hosting?

    And the like.

    The common theme is most of the customers of hosting for those threads are with companies who charge less than $15 per month (or a lot less) or whose resources for a given plan are "too good to be true" for any price (for example $25 per month for the same resources of a dedicated, but on shared hosting).

    That is "cheap" hosting.

    The sad part of the story goes like this analogy:

    There are one hundred grocery stores in the city where you live. At least 75 of them have a gallon of milk for a quarter. The remaining (less than 25) sell a gallon of milk for between $1 and $2 per gallon.

    You have people will go to one store and pay a quarter, get sick or otherwise throw out the milk. And go from $0.25 store to $0.25 store getting sicker or otherwise throwing out the milk.

    All the while complaining that no one sells good milk; and losing faith in the milk industry.

    And during the process not once stating, “maybe the problem is my budget, and I should try the $1 or $2 for a gallon of milk.”

    In the past year, you have hosting customer after hosting customer seeking value in very cheep pricing (whether it be cheap based on resources for the price or just place price), getting little value, and then moving on to another “cheap” provider thinking one day they may get lucky and have “good value” for the money.

    Not once thinking maybe something is wrong with their budget.

    Thank you.
    I don't mean to spam the thread... This is a top notch response though and I thought it needed to be said, again! This is key.
    http://www.rhost.net
    Affordable and Reliable Hosting

  16. #16
    Join Date
    Mar 2004
    Location
    San Diego, CA
    Posts
    540
    All good points. My concern was the use of the term cheap to describe a product/service. Have we as companies fallen into the trap of marketing ourselves with terms that may not mean great things but are terms that customers search for?

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •