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  1. #1
    Join Date
    May 2003
    Location
    East Anglia, United Kingdom
    Posts
    4

    * Should I charge more

    Hey all,
    Reading through these forums and offers made by some of the hosts here, I see some crazily low prices for hosting here, prices from $1/month, I mean processing fees cost more than that on credit cards, I just don't see the logic behind it all.

    My WebHosting company currently owns two servers, one in Houston, Texas, and one in Long Island, New York.

    The server located in texas is the established server, to which I already have packages design to fulfill the needs of the server, firstly though, looking at the prices here on the forums, am I charging too much?

    xrshosting.com

    We have a fair amount of customers, and they are pleased with the services to which we provide them, along with the uptime and speed of our servers. However, for the company to grow, which it needs to soon, we need to grab other clients into our hands.

    However, to do this, we decided to purchase a server in new york in order to offer faster network speeds to future clients. However, what prices should I quote, as the server itself costs more in terms of bandwidth than that of the texas server.

    Also, we currently do not offer reseller hosting, is it a good idea to start this? Are sales boosted through this? I'm just trying to explore the posiblities that this new server can provide us with.

    Thanks all for any input and its much appreciated, I just can't see why I should drop prices as low as $1 a month and loose out.

  2. #2
    Join Date
    Apr 2004
    Posts
    295
    Maybe reduce your 200MB/2GB price to $4.95 a month or something.

  3. #3
    Join Date
    May 2003
    Location
    East Anglia, United Kingdom
    Posts
    4
    I also don't know how to get the message out there, I don't have much money to spend in terms of advertising, any suggestions? I know you can get people to sell your services and you give them 10% of it, is that a good route to take?

  4. #4
    Join Date
    Mar 2004
    Location
    na
    Posts
    256
    Why not put a signature and participate actively in this forum?

    It is free advertisment and many of us can feel your customer service indirectly.

  5. #5
    Join Date
    Aug 2002
    Location
    London, UK
    Posts
    9,037
    You shouldnt need to drop your prices to compete, but at the same time you need to come up with some way that you can compete - nobody here is going to be able to give you any advice which will turn your hosting site into a success overnight, it just doesnt happen that way.

    To succeed in such a saturated industry takes a lot of time and effort OR a lot of money.
    Matt Wallis
    United Communications Limited
    High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
    UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.

  6. #6
    Join Date
    Mar 2003
    Location
    Duluth MN
    Posts
    3,864
    Many hosts here will agree that if you maintain fair, yet competetive pricing, and offer good service, once you gain customers, you can easily keep them, and as long as they remain happy, they will continue to refer others.

    You may think that you are pricing your plans a little high, but others may think the same about my plans. However, you need to consider your markets, and the kinds of customers you want to attract. For example, as I reach into my local markets, customers cant believe the low prices that I am offering. And yet, when I reach into the WHT market, people cant believe the "Ourtageously high prices" I am charging because they aren't on par with the $1-2 hosts.

    In my local market, I look at my competition, which is the local ISP's. These companies charge $50/mo for 25mb disk space with 1gb transfer, and 5 email accounts, with no control panel. And they have many, many customers at these prices. So when I talk to businesses who have their website with the local ISP, and then they see the business e-commerce solutions I can provide them, they are sometimes wary of my low prices, even though I feel as though I would be ripping them off by charging more.

    So, you need to sit back, evaluate who your potential customers are going to be, and set your prices/marketing accordingly. So if you target the locals, dont worry about the cut-throat price wars that go on here in the offers forums. But at the same time, remain flexible

  7. #7
    Half of the market thinks all prices are too high except the 1-2 dollar hosts, and the other half is not even aware and is the exact opposite. If more of those people from either extreme were to be more educated, we would definitely see a rise in orders. It’s much easier to educate someone paying too much then it is to educate someone paying 1 dollar a month.
    Web Hosting: BlueCapacity.com
    Image Hosting: iownjoo.com
    AIM: bluecapacity | Email: Webmaster at bluecapacity.com

  8. #8
    Join Date
    Mar 2004
    Posts
    1,301
    Show that your a quality host. Not every1 is intrested in cheap hosting, especially busiensses. You have costs to take care of, calculate your costs and see how many clients you need to achieve your break-even, and then support them well. Add your margin to your costs and then sell it. if you have an idea of how many clients you need it would be easier to project how much you need to sell. Set a standard for your company through quality service and reliable host!

  9. #9
    Join Date
    Aug 2003
    Location
    EU
    Posts
    1,671
    I consider that you could increase your prices only, and I say only if you have a superior support staff. Mainly businesses appreciate this more than enything else you have to offer.
    A toll-free number, an online support(that shows online ), a friendly and qualified support staff would encourage them to pay the extra.

    But all of this well advertised of course.
    Lorand R. Minyo
    Co-Founder @ Neveli

  10. #10
    Greetings:

    WHT represents only a fraction of the hosting market.

    Companies like FutureQuest, NTT/Verio, and others are still charging $20 on up for hosting; and they are growing.

    Please keep in mind that if some one advertises something, it does not mean they are making money at it, growing, or even providing adequate service and support for it.

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

  11. #11
    Many hosting business that charge 1$ / month package are trying to grow fast to pay their server and others expense. They don't have any business plan. They will close business a few month after they started because they will have too much clients and to much questions to answer.

  12. #12
    Join Date
    Mar 2004
    Posts
    1,301
    They could also be scams, trying to collect people's credit card information and correct addresses so they can perfom more professional scams. You get what you pay for, not necessarily the higer price the better but providing better support and services are a factor in premium prices.

  13. #13
    Join Date
    May 2003
    Location
    Ottawa
    Posts
    2,478
    $1 and $2 hosts don't last, it doesn't pay the bills. You should never need to reduce your prices to compete, especially against companies that wont last in the first place.
    Webmaster Forum • webmastertalk.net • Webmaster Community Forum
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  14. #14
    Join Date
    Mar 2004
    Posts
    1,301
    You can have promotions like autica and thrillhost
    1$ for first three months

  15. #15
    Well you couldn't never charge enough or not. It really depends on the cosumer that you are targeting. Also i beleive that people who are willing to pay out only a dollar aren't worth the time anyhow.... i don't like cheapskate

  16. #16
    Join Date
    Mar 2001
    Location
    Houston, TX
    Posts
    972
    Raise your prices, add value to your organization, and you'll find that it's worth having a tinier client base that is paying more (and getting more too).

    Soon the world will be educated about ultra-low-cost hosting space just inviting trouble. We have a few customers that have a plethora of accounts on the server - they have no choice but to do this to stay profitable. But then, all it takes is one account to go awry or too many mySQL users to start causing problems.

    Roj
    Web Hosting? Been there. Done that.
    I am niyogi.

  17. #17
    Join Date
    Mar 2004
    Location
    Singapore
    Posts
    6,984
    Yeap agree totally with niyogi, experienced 2day one 200mb mysql client giving problems, one such database giving performance prob for an entire server. Can imagine those charging US$1 /mth how they are going to handle such cases, how are they going to support such CPU intensive clients and able to be profitable.

  18. #18
    Join Date
    Mar 2001
    Location
    Houston, TX
    Posts
    972
    What also seems to be funny is that the customers that pay $1/month expect a world of service, support, and performance.

    Roj
    Web Hosting? Been there. Done that.
    I am niyogi.

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