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Thread: Re: Pricing

  1. #1
    Join Date
    Aug 2002
    Location
    Canada
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    363

    Re: Pricing

    Although these two blog entries have nothing to do with web hosting, they have a lot to do about pricing strategy. Have a read:

    http://sethgodin.typepad.com/seths_b...n_pricing.html
    http://www.joelonsoftware.com/items/2005/11/18.html


    JP
    JP
    Justified Existence - my blog on blogging and writing for a living.

  2. #2
    Join Date
    Nov 2002
    Location
    Canada
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    1,544
    Very interesting articles...but I don't really see the connection to "running a web hosting business"...

  3. #3
    Join Date
    Aug 2002
    Location
    Canada
    Posts
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    Pricing has a lot to do with running a web hosting business.


    JP
    JP
    Justified Existence - my blog on blogging and writing for a living.

  4. #4
    From all of the posts I've seen here, I think that both of the articles are right:
    1. New hosting customers or customers who do not use their account much do not care about the price. They assume that hd space = hd space and bandwidth = bandwidth.
    2. Businesses and others who have experienced the dread of downtime understand that a higher price is generally equivalent to better service.

    Of course, differentiating yourself from others solely by price is not the best way to market. The #2 crowd probably also knows that they can still receive that crappy $2/mo service with a $10 host, so you want to establish yourself as a provider of a great service in general -- any combination of uptime, support, usability, etc.

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