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  1. #1

    Creating Packages and Setting Prices?

    I would like to ask a couple of questions here....

    I am very new to the web hosting world, it all started because I am freelance web designer and I have seen myself looking for web hosts to host my customers websites and then as you might be thinking I said to mysef that I should host their sites myself. So I have a reseller account on a pretty reliable company and I would like to start my own web hosting business.
    I have been lookng at other companies and their offers and there is definately not a standard on the features and prices. For example, some companies sell 5 GB of BW for 7 a month and then there is a company selling 100 GB of BW a month for the same price. How can you compete with these companies?

    And then another question that I have, what are the bases for deciding what features and HOW MUCH to offer, for HOW MUCH money?

    Any info on this will be appreciated....

  2. #2
    Join Date
    Mar 2004
    Location
    Arkansas
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    93
    you really dont need to compete with the $2 "unlimited everything" host. For a couple reasons, once a person gets burned enough they will realize you get what you pay for. Second if your doing it for your webdesign business you can probably get away with charging alot more. As alot of people like to get everything at one place, so they dont have to deal with alot of different people. Like i said i wouldnt pay much attention to the budget host, if a company can afford to have a page designed 30 or 40 or even 50 bucks a month isnt going to kill them (so long as it is backed by good service)
    YourDotComPeople.com Hosting And Web Design For Small Businesses!

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  3. #3
    Join Date
    Mar 2003
    Location
    Leeds. UK.
    Posts
    460
    Originally posted by shotgun7
    you really dont need to compete with the $2 "unlimited everything" host. For a couple reasons, once a person gets burned enough they will realize you get what you pay for. Second if your doing it for your webdesign business you can probably get away with charging alot more. As alot of people like to get everything at one place, so they dont have to deal with alot of different people. Like i said i wouldnt pay much attention to the budget host, if a company can afford to have a page designed 30 or 40 or even 50 bucks a month isnt going to kill them (so long as it is backed by good service)
    You really think its possible to get 50ish bucks a month? What kind of resources would you be giving the client in return for this fee?

  4. #4
    Join Date
    Mar 2004
    Location
    Arkansas
    Posts
    93
    While $50 would most definetly be on a higher end plan i sure dont see why not. As long as the service was there to back it up.

    Alot of isp's charge close to that for very little space and bandwidth. The whole point of the matter goes back to not trying to compete with the unlimited everything budget host.
    YourDotComPeople.com Hosting And Web Design For Small Businesses!

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  5. #5
    Join Date
    Aug 2003
    Location
    USA
    Posts
    1,030
    The biggest point of interest for you will be your design connections.
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  6. #6
    Join Date
    Nov 2003
    Posts
    1,093
    Just target the right places, remember, the highher the price, the less you'll sell, meaning your ROI on advertising will be less unless you target places which are likely to buy those higher priced plans. Don't hit places where other hosts are advertising low priced plans or that plan will go to hell.
    ManageMyServices was sold by me in September 2009. I no longer have any affiliation with this company.

  7. #7
    Join Date
    Jun 2005
    Location
    Canada
    Posts
    2,493
    There is no point in even thinking about competing with the $2 unlimited hosts. They are just going to run out of resources or burn out.

    What I would do is check out many other hosting companies around here (can find a lot in signatures), and check out their prices. Get an average price for space and bandwidth see if it suits your reseller and use it

  8. #8
    Join Date
    Sep 2004
    Location
    Sussex, England
    Posts
    193
    As a company we charge different rates for hosting from our site and for web design customers.

    With web design customers you can get away with charging a lot more as they don't know the industry and what prices they should expect to pay. I'm also presuming that you deal largely with businesses who probably won't think twice about spending £50 or $50 a month on hosting.

  9. #9
    Join Date
    Jun 2004
    Location
    UK, England
    Posts
    133
    I think its ok to charge them a bit more as you are giving a more personal and a "We will hold your hand" kind of service but ripping them off just because they are not very familiar with the web industry is wrong, if your doing that i think you need to review your buisiness plan.

  10. #10
    I have the same problems. I can't offer clients XXGB amounts of guarenteed bandwidth since my vps only offers me 50GB total! So I tell them that they bandwidth isn't measured but if it's excessive then it will be measured and charged extra. Hard drive space too I can't give 5 gigs to every client cause my current vps plan is 5 gigs total, I think I will advertise 500megs of space. I started charging $15/month back 3 years ago for hosting, a local isp was charging $25 or more. I now have dropped my prices to $10/month or $100 per year, and may drop it again to $8/month or $95/year. I can't afford to go lower and still make any money. I only have 10 or so paying customers at the moment.

    Jim

  11. #11
    Bandwidth & disk space are cheap theses days, what you really have to consider is the cost for costumer support etc. If you're really providing them a good service with good support, Uptime I don't think there's anything wrong going all the way up to 30-50 bucks..

    Best Regards,
    Stephen M

    SkyNetHosting Support - SkyNetHosting.net

  12. #12
    As sketchy rightly said, you should add value on your service if you are charging little high and I would like to add by dealing with such customerís right from beginning truthfully and providing the knowledgeable support to them you are be able to build a good will in long run.

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