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Thread: Competition

  1. #1
    Join Date
    Apr 2005
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    * Competition

    Can a Small Host servive in this competitive industry as following gaints offering such big packages at very cheap prices.
    Yahoo
    5GB disk space @ 8.95

    Ipowerweb
    10GB web space @ 7.95

    ****** 10 GB space @ 7.95

  2. #2
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    Depends on what you bring to the table.

  3. #3
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    bring a creative brand to the industry with a twist on your offerings... you can also offer the same packages, people make money in this business my overselling.

    good luck in your venture!

  4. #4
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    Branding is everything. Convince your customers that you have something more to offer. In many of our cases, that means giving the customer a more customized experience, something more personal. Yahoo can offer huge space at small prices, but they cannot offer that.

  5. #5
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    Yes, find your niche.
    Mike from Zoodia.com
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  6. #6
    In our experience, competition is tough. What we do is focus on the local market. Provide them great customer support. You will be surprised more business will come your way.

    Stick to your business plan. Don't' lower your price because others are a bit cheap. Concentrate on what you do best for your client. Don't stoop down to the level of price war.

    We wish you well.

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  7. #7
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    Thanks to the Matrix thread today for this...

    You cannot simply beat the competition head on, for they are bigger, better, larger, have more funding, have a stonger user base, and do more advertising...

    You only have to realize the truth... there is no competition.
    Jacob - WebOnce Technologies - 30 Day 100% Satisfaction Guarantee - Over 5 Years Going Strong!
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  8. #8
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    Quote Originally Posted by WO-Jacob
    . . . You only have to realize the truth... there is no competition.
    The only competition I feel, is from within.
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  9. #9
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    Quote Originally Posted by Aussie Bob
    The only competition I feel, is from within.
    You want competition? YOU CAN'T HANDLE COMPETITION!

    Jacob - WebOnce Technologies - 30 Day 100% Satisfaction Guarantee - Over 5 Years Going Strong!
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  10. #10
    You can not compete directly with the "big players" in the general hosting market.

    However, if you specialize in something.. then this becomes your niche (unique selling point), and you can start to attract customers.. since you offer something nobody else does, etc.. in other words:

    Ask yourself WHY should someone choose you instead of one of the companies you listed.

    Possible answers:

    - personal support/service. (ie: You live in the same city, are willing to visit on-site, etc)

    - expertise on a specific subject or market. (ie: You have a program that makes realtor websites, and they must host with you to use it...)

    This should give you an idea of what your possible customers will be asking themselves. Why should I pick you instead of [insert any other company here]?

    If you offer the same things as everyone else.. then the answer to your original question is "no".
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  11. #11
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    Yes, it is possible to compete in this market. And, contrary to what mrzippy says, it is indeed possible to compete with the biggest players. We just closed our most successful week ever (we've been in business since August 2004 and in the hosting business since October 2004), and expect things to keep getting better and better.

    The bottom line is this: if you know you can compete, then you can. If you know you can't compete, then you won't.
    Daniel B., CEO - Bezoka.com and Ungigs.com
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    Data Centers in: Chicago (US), London (UK), Sydney (AU), Sofia (BG), Pori (FI)
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  12. #12

  13. #13
    I do not think webmasters really impress with 5 and 10 gb plans, most if not all website owners know that they will not use this space and who will use it know that he will be terminated if he tried to reach what this "big players" offer.

    they depend on heavy affiliate programs (Ipowerweb, powweb, ..) or in their brands (yahoo) or in their large user base of other service(godaddy) to sell a lot.

    I guess a big Yahoo do a favour for smalls like us, they attract the regular web surfer to have a domain and website, the surfer who turn to webmaster, sooner or later will be a customer to smalls like us, because they need some special and real support ... honstly, no less than %25 of our signups domains was using Yahoo DNS!, another %25 come from godaddy .. I see a lot of 1and1, ..etc

  14. #14
    There is no competition...It is just whether the customer reaches you or not...most customers will sign up with the first web hosting they see on the net...
    Swiftroute.com Web hosting
    www.swiftroute.com.

  15. #15
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    Quote Originally Posted by SR-Chuyang
    most customers will sign up with the first web hosting they see on the net...
    I don't think that's accurate at all. Do you have statistics to back that up?


    --Tina
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  16. #16
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    As others have said above, you really can’t compete with the big names in hosting in terms of sheer revenue. Sure, you can pick up a fraction of the customers they pick up and claim you’re “competing” with them, but you’re really not. Competing is being a major player; picking up two or three customers that Yahoo, GoDaddy, PowWeb, iPowerWeb, etc. might have otherwise gotten is not.

    Also, like others have said, you really just need to find a specialty—something that only you (or very few people/hosts) offer. By simply offering generic hosting, you won’t get that far. Sure, you might accrue a couple hundred people, but your profits (and thus income) are going to be marginal, if anything at all. On the other hand, if you pick a specialty/niche—e.g. “fanatical” customer support as RackSpace has claimed—you might be able to do pretty well for yourself. One big market is the local one, where you can typically charge prices that WHTers would consider insane—like $30/month—for a comparably tiny package, like a hundred megabytes of space and five gigs of bandwith, for a small business or law firm. You certainly wouldn’t be able to charge this to the “online” community, but you can do so locally.

  17. #17
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    I agree, Tina - In my experience, people go to a lot of trouble finding a good host, even at this small level - just because it is a pain to move around from host to host.

    You can compete with the big companies out there - just find where they seem to be lacking and make up for it on your own - i.e. you see people complaining about slow support? Then find a way to market yourself with a "15 minute ticket response" guarantee or something like that.

    Not everyone (though it may seem like it oftentimes) will go for just the cheapest thing out there.

  18. #18
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    Quote Originally Posted by Aussie Bob
    The only competition I feel, is from within.
    That's deep
    Gary Jones

    BlueFur.com - Canada Web Hosting

  19. #19
    I believe that it's all in they way that your site looks, the ease of navigation, tons of information that they want to find out, and word everything in just the right way. You would be surprised how many people will turn down a dirt cheap host just because the descriptions of there services are bland.

  20. #20
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    Quote Originally Posted by MH-Gary
    That's deep
    Yeah. I guess what I'm saying is that I am my own worst and best asset. I compete (battle) against myself, and not against other hosts. So the battle is internal rather than external.
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  21. #21
    First, I also disagree that customers sign up with the first host he sees. I would give the average hosting customer a lot more credit than that.

    In order to succeed as a small host, you have to do something to distinguish yourself. Although it may not seem like it, all small businesses inherently have some advantages over large businesses. While you probably won't beat them on price, you can be more flexible and do things that can better cater to your target market than Generic Host X can.

    Find a niche market and build a brand that appeals to that market. Then find as many ways as possible (personal interactions, forums, great support, etc.) to add "perceived value" to your hosting services. Offer as many benefits as you can that the "Big Guys" aren't able to offer b/c they are so big.

    Think about it in these terms. You are a small retail store that has been forced to open right next to a Super Wal-Mart. You obviously can't beat Wal-Mart on prices, but what can you do to convince customers that they should host with you instead? Your customers are always a click away from a mega-host, but maybe they won't get personal interaction with that host. Maybe they won't know its support staff by name. Maybe they can't interact with their company in forums on the website. Maybe they don't get a personal email or IM thanking them for being customers every few months.

    Ok, maybe i've gone a bit overboard. But I do think that it is crucial as a small business (hosting company) to distinguish yourself in every possible way that you can. It is your competitive advantage.

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