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  1. #1
    Join Date
    Jan 2004
    Posts
    64

    Local Market Prices?

    I am in the process of creating my business plan for my hosting company and I am curious on what webhosting companies charge to their local customers. I for one do not want to compete by low price. What's a fair PLAN and PRICE to offer my local clients.

    If anyone has any experience with web hosting locally, I'd be interested how you find and present your offers to the locals in your city.

    Also please let me know if you have any local marketing strategies that have given you good results?

    Thanks

  2. #2
    What's a fair PLAN and PRICE to offer my local clients.
    Whatever it takes to pay the expenses.

    Seriously though, calculate your expected expenses, plus what you yourself want to have left over after these are paid, and calculate prices from that. If your service is good enough, people should be willing to pay almost anything.

  3. #3
    Join Date
    Mar 2005
    Location
    Baltimore, MD
    Posts
    11
    it's been my experience that if you're direct your efforts towards the local market your prices can generally be a little higher than if you're marketing to internet customers. they don't seem to shop you as much. it's almost impossible to compete, price wise, with other hosts when marketing online only...some people actually believe that unlimited space and bandwidth for $1.99 is real...lol

  4. #4
    Join Date
    Jan 2004
    Posts
    64
    Yeah, Also local customers don't have much internet experience at times. They won't know how to shop for web hosting.

    They have plans that offer 80GB for like $5.95 a month. Crazy :-/

  5. #5
    Join Date
    Mar 2005
    Location
    Baltimore, MD
    Posts
    11
    Originally posted by bluemc
    Yeah, Also local customers don't have much internet experience at times. They won't know how to shop for web hosting.
    you gotta love em...
    www.pulpwebsolutions.com
    www.pulphosting.com

    targeting my local markets...

  6. #6
    Not only will you be able to sell your hosting services at a higher price (generally speaking) to your local customers, but in many cases they will be an easier sell in comparison to advertising on the Internet since they can meet you in person and know you are not far out of reach if anything goes wrong.
    Sedna Solutions Internet Marketing Web Design Branding Advertising Graphic Design Public Relations Consulting
    Sedna Hosting Web Hosting Solutions

  7. #7
    Join Date
    Mar 2005
    Location
    Baltimore, MD
    Posts
    11
    Originally posted by sednasolutions
    Not only will you be able to sell your hosting services at a higher price (generally speaking) to your local customers, but in many cases they will be an
    easier sell in comparison
    to advertising on the Internet since they can meet you in person and know you are not far out of reach if anything goes wrong.
    also, locals are likely to be much more loyal. nothing like pressing flesh, can't do that online.
    www.pulpwebsolutions.com
    www.pulphosting.com

    targeting my local markets...

  8. #8
    Join Date
    Feb 2002
    Location
    New York, NY
    Posts
    4,612
    Local customers are easier to deal with, and pay more money. We stopped doing internet marketing a long time ago.
    Scott Burns, President
    BQ Internet Corporation
    Remote Rsync and FTP backup solutions
    *** http://www.bqbackup.com/ ***

  9. #9
    Join Date
    Jan 2004
    Posts
    64
    How do you guys find and approach your local clients?

    I'm not sure how to present myself when selling hosting.

    I'd also like to know if anyone does sales leads, you get their contact info and you cold call, pretty much soliciting. Anyone know anything about this?

    Btinternet: How do you deal with your clients, do you visit them and help them out. Or do you tell them to post a support ticket? Where do you find most of your local clients?

  10. #10
    Join Date
    Feb 2002
    Location
    New York, NY
    Posts
    4,612
    Originally posted by bluemc
    How do you guys find and approach your local clients?

    I'm not sure how to present myself when selling hosting.

    I'd also like to know if anyone does sales leads, you get their contact info and you cold call, pretty much soliciting. Anyone know anything about this?

    Btinternet: How do you deal with your clients, do you visit them and help them out. Or do you tell them to post a support ticket? Where do you find most of your local clients?
    I usually find local clients through networking. People refer us to new customers.

    We don't do cold calling, but if I'm talking to another business person, I try to find a way to bring up the subject of their website.

    Local clients usually don't require much support. If their website works properly, they're happy. I have made local visits before, but not often, and I usually charge extra for the support.
    Scott Burns, President
    BQ Internet Corporation
    Remote Rsync and FTP backup solutions
    *** http://www.bqbackup.com/ ***

  11. #11
    Join Date
    Mar 2005
    Location
    Baltimore, MD
    Posts
    11
    when we have contractors out to the house they always give me a business card. if there's no url....easy in. also, calling local small business' (like a fish store for example...somewhere the owner would normally work him/herself) and asking the name of the owner, saying thank you and hanging up..then walk into the store and ask for him by his first name and laying it out. if they don't have a site it's easy to put them on the spot and make them feel inferrior (nicely) works well. when a small business owner finally gets a website he feels like he's working on a completely different level.

    you're right...if people have never had a website they are really happy so long as it's working...they don't know nor care about cpanel or plesk...whether you run kayako or cerberus...find a strip mall where joe business owner is working and i'll show you a gold mine.
    www.pulpwebsolutions.com
    www.pulphosting.com

    targeting my local markets...

  12. #12
    Join Date
    Jan 2004
    Posts
    64
    My plan was to keep everything simple for them to maintain.

    Planning on using Direct Admin with the new AWBS system.

    I would also think the amount of fraud orders would be a lot less since you are dealing with your customers in person.

  13. #13
    Originally posted by bluemc
    My plan was to keep everything simple for them to maintain.

    Planning on using Direct Admin with the new AWBS system.

    I would also think the amount of fraud orders would be a lot less since you are dealing with your customers in person.
    I am considering taking the same path. Could you elaborate a little bit on AWBS and directadmin?

  14. #14
    Join Date
    Jan 2004
    Posts
    64
    I've heard many great reviews on companies who are Cpanel based switching over to direct admin. An they said their clients love it.

    Direct Admin is more straight forward, simple, and its more stable. You can view the direct admin (http://www.directadmin.com/) The direct admin is the control panel for your websites.

    I also think they have a great knowledge base. Which you can see at http://www.site-helper.com/.

    AWBS is the Billing software, and automation software. You can take a look at it at http://www.dramsystem.com/. AWBS is formally known as DRAMS the AWBS should be a lot better.

    AWBS also has domain management if you plan on selling domain names.

    You the search feature and find posts on reviews on Direct Admin.

  15. #15
    Our local newspaper releases the names and addresses of all newly registered business in the area. If you want to take the direct mail path to advertising, sending letters to these new businesses works great. There are two reasons why I recommend a letter over a postcard ad:

    1. You can be much more personal with a letter by including the customer's name and writing how affordable it is to have your own web site and how effective web sites are to attract customers (keep in mind they are new businesses and they are most probably open to new ideas on how to attract customers).

    2. New businesses, along with most businesses in general, are flooded by postcard advertisements from many companies and many of them simply throw them away.

    3. Generally speaking, it is less expensive to send a letter in comparison to getting postcard advertisements printed. Just remember that if you send a letter it is important that it is printed on a professionally-designed letterhead (better if in color) as you your reader is going to judge your company based on this letter, even if it is just a sheet of paper. You want to present yourself as best as possible.

    And of course you can also go to InfoUSA or USPS and buy targeted mailing lists for your direct mail advertising campaigns, but if your local newspaper publishes this information as mine does, its a much cheaper way to reach these potential hosting customers.
    Last edited by sednasolutions; 04-17-2005 at 04:39 AM.
    Sedna Solutions Internet Marketing Web Design Branding Advertising Graphic Design Public Relations Consulting
    Sedna Hosting Web Hosting Solutions

  16. #16
    How do you guys find and approach your local clients?
    I sold a website and hosting to an Auto Repair shop owner this morning. I was there getting my oil changed and asked "do you guys have a website?"

    Sometimes it's that simple.
    This is not a signature.

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