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  1. #1
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    Quality vs Quantity

    Just curious these days how the little guys are surviving today in the hosting world? Seems like all these large companys are offering some sweet deals, say 6 months free hosting and a domain with the exception of a contract and paying up front. In a way i'm curious how any of the smaller hosts with higher prices or resellers are getting any sales at all? Is everything just overselling now or is there actually a demand for Quality? Seems like all these Quantity hosts are starting up faster than the HYIP business and fold overnight.
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  2. #2
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    Everyone starts out with the quantity, some love it, many others don't -- then they realize you get what you pay for in terms of quality hosting.

  3. #3
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    You could still provide quantity, while providing quality.

  4. #4
    You could still provide quantity, while providing quality.
    I am not that sure about that. Depends on how you define quantity of course, but when I see an offer like 1000GB traffic and 100GB storage for $10/month, I know I shouldn;t expect quality....
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  5. #5
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    VP-Kaumil - I do agree with you if done properly. The one thing you don't want to do is sacrifrice the quality and many times when you offer these "sweet" deals you end up pulling in more clients which from my personal experience, become the needest bunch of children your company can cater too.

    Many of the clients that look for the lowest rates possible are for the large part, ones coming from free hosting, and also expect the most from you even though they are only paying you $4 to $5 per month.

    And - it is important that the same level of support is shown to them - but it can become a big headache.

    I think I am just ranting on and starting to make little sense at all so ill stop.


  6. #6
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    Everyone seems to be overselling now. We are pleased to say we don't. I see a lot of unlimited offers, unlimited space is impossible but that does not stop people buying it.
    MK Hosting - Reliable Affordable UK Hosting Since 2005
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  7. #7
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    And maybe you shouldn't expect quantity either. Because someone else will use your 100GB space.

  8. #8
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    Quote Originally Posted by VP-Kaumil
    You could still provide quantity, while providing quality.

    Uh-huh, sure. But lets add what the normal seems to be with that scenario.
    The web host quickly BURNS OUT and realizes the 100 accounts at a buck each is not worth all the headache. Summing up, the client gets screwed (as usual) and the host folds up.
    HostCaters.com - Quality Web Hosting - Under A Gig! - Since 1999

  9. #9
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    I believe that the subject was discussed over and over again. As long your own company can stay up and running and have good feedback from customer's you should not worry about other companies. That's my point of view. Go your own way, see how things go.
    PierreB - Montreal

  10. #10
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    Eh, we charge $20 - $200/month for shared hosting, been doing it since 1995, and still signup new accounts each day. And we offer less than 1 GB of space on all plans and less than 50 GB of monthly transfers. Offer great service, exceed clients' expectations at every possible turn, and you'll develop an "uber loyal" client base that will do the selling for you.

    - John C.

  11. #11
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    This is discussed here pretty much daily. You would think that people would start to understand by now. Anyone selling a million GB of b/w for a buck is just rediculous.
    Jim - 2Macs H-Sphere Web Hosting
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  12. #12
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    Quote Originally Posted by JohnCrowley
    Offer great service, exceed clients' expectations at every possible turn, and you'll develop an "uber loyal" client base that will do the selling for you.

    - John C.

    Bingo! I agree. Its annoying though when the net is plastered with such crazy hosting offers. It would be totally different IF clients could NOT utilize a 50mb account but we know what the truth is! We recently changed our plans (within reason!) as our smallest plan used to be 30MB and its now 50MB. When viewing nightly reports it "WASN'T" necessary to do but we did.
    HostCaters.com - Quality Web Hosting - Under A Gig! - Since 1999

  13. #13
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    I've been living off quality over quantity, and so far... It's worked out very well!
    Last edited by tim_w; 08-31-2006 at 01:53 PM.

  14. #14
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    Quote Originally Posted by NationHosts
    Just curious these days how the little guys are surviving today in the hosting world? Seems like all these large companys are offering some sweet deals, say 6 months free hosting and a domain with the exception of a contract and paying up front. In a way i'm curious how any of the smaller hosts with higher prices or resellers are getting any sales at all? Is everything just overselling now or is there actually a demand for Quality? Seems like all these Quantity hosts are starting up faster than the HYIP business and fold overnight.

    Nation,

    We have been in the hosting market since 1998. I belive many new web hosting companys ran by people just starting to get into this industry are overselling. If I get a phone call or an email to our sales department asking to match another hosting companys pricing. I give them reasons why we can't and they can make the decision of; Having problems down the road or Having no problems down the road and having a worry free web host.

    Why should someone oversell? They might make money upfront but realistically they are losing money! Sure if they have 5 customers and they are paying 10$/month there is a good $50 maybe 50% of there server cost but if each customer has 100GB that server can hold what? 10 more customers...... Wheres the profit? there is none. *OVERSOLD*.

    We have to look at hosting as a profitable market otherwise we wouldn't be here. Everyone even my friends pay a 20% markup on all my plans *at cost* and even family pays a good 10-15%. We are here to make money not lose money! Whether the host decides to rob people or offer a reasonable price its up to them! I still see hosts charging 25$ for 1GB of transfer, They tell me its "Quality" and if they drop their pricing half of there customers would leave......... These are people who started hosting in 1990's "small" but profitable companys here in 2006.
    Axcelx Technologies - James
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  15. #15
    I believe you can get both. There are hosting companies with values and good intentions. Some just collect payment and never follow through... There are companies that charge a lot for lacking service too...

    Chris
    Christopher J Smallwood
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    VertuHost Web Hosting Solutions

  16. #16
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    Quote Originally Posted by Crucial
    Nation,

    We have been in the hosting market since 1998. I belive many new web hosting companys ran by people just starting to get into this industry are overselling. If I get a phone call or an email to our sales department asking to match another hosting companys pricing. I give them reasons why we can't and they can make the decision of; Having problems down the road or Having no problems down the road and having a worry free web host.

    Why should someone oversell? They might make money upfront but realistically they are losing money! Sure if they have 5 customers and they are paying 10$/month there is a good $50 maybe 50% of there server cost but if each customer has 100GB that server can hold what? 10 more customers...... Wheres the profit? there is none. *OVERSOLD*.

    We have to look at hosting as a profitable market otherwise we wouldn't be here. Everyone even my friends pay a 20% markup on all my plans *at cost* and even family pays a good 10-15%. We are here to make money not lose money! Whether the host decides to rob people or offer a reasonable price its up to them! I still see hosts charging 25$ for 1GB of transfer, They tell me its "Quality" and if they drop their pricing half of there customers would leave......... These are people who started hosting in 1990's "small" but profitable companys here in 2006.
    I understand where your coming from, the problem is these "bargain hosts" conflict with the current market and steal a lot of potential customers. It doesn't help either when a customer has the lights turned off. On top of that you always have them saying "Well I can go with this host who offers this much more". Would explaining overselling even matter to them? Most clients seem to just want service and don't really seem to care about the technology or the companys business practices until it's too late.
    Nationhosts, LLC
    http://www.nationhosts.com
    "Nationwide hosting solutions"

  17. #17
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    Explain overselling so they understand it then explain how overselling can effect there web site and the trouble it can casue for them and the headache's. I've been able to land about 80% of customers who try to price match with budget hosts who oversell the other 20% either look elsewhere or come back to me.

    Alot of people just see pricing but with the knowledge going around pricing points don't always work. Someone don't want to move hosts if they dont need too even if there saving $24/year.
    Axcelx Technologies - James
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  18. #18
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    Small companies simply say in business because they offer something the big guys don't.

    aka,
    Better, personal support
    Better Quality
    even Quantity.

  19. #19
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    The teams are Quality vs. Quantity; two performance factors that don’t seem to get along.• Representative Super Speedy says, “I’ve taken more calls than anyone on the team today. My average handle time is the lowest on the floor.”
    Coach Level Head breaks it down for him, “But your quality scores are below everyone else on your team.”
    • Representative Detailed Dan says, “My quality scores are top notch. I give every one of my customers the detailed attention they deserve.”

    Quantity is actually efficiency, and efficiency is part of Quality. Instead of focusing on the number of calls we took in a day, we must talk about this performance goal in terms of how efficiently we took those calls. Did we use the time we had with them appropriately? We can not say that we offered the customer a Quality Interaction if we kept them on the phone for 25 minutes trying to solve their issue. On each call we owe the customer courtesy, information, honesty, answers and EFFICIENCY. A customer who received the answer they called looking for in 3 to 4 minutes will be happier than one who reaches their answer after 10 minutes.
    | Robert Mitchell | Dynu.Com - Best for you !
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  20. #20
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    I wrote something that explained it a bit more in detail, however, I'm not going to praise something to people who do not want to listen.

    Quality can be achieved by giving out quantity. Check out the top hosts, they are offering a lot, and maintaining over 80% of their customers ever year. Quality is there, unfortunately, you can never achieve a 100% renewal rate with shared hosting, that is, if you're after the "budget" market.

  21. #21
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    My girlfriend works at a job recruiting company and she submits a users resume to the sales department after she writes a paragraph on why she thinks they fit the posistion. After sales approves it, its passed to the company to interview the canidate. However there are people at her company that submit maybe 10 resumes a day and then she is the one submitting 2 a day or even 5 a day. All her jobs are picked to the next stage interview and the other people submitting 10 a day maybe 1 or 2 get picked.

    It's Quality not Quantity!

    I'ts just like the saying.......... Why do something twice when it can be done RIGHT the first time.
    Axcelx Technologies - James
    Boston Colocation | Boston VPS
    Massachusetts Server Colocation, Dedicated Servers & VPS

  22. #22
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    Quote Originally Posted by VP-Kaumil
    I wrote something that explained it a bit more in detail, however, I'm not going to praise something to people who do not want to listen.

    Quality can be achieved by giving out quantity. Check out the top hosts, they are offering a lot, and maintaining over 80% of their customers ever year. Quality is there, unfortunately, you can never achieve a 100% renewal rate with shared hosting, that is, if you're after the "budget" market.

    The top hosts also have HIGH commit levels which enable them to offer these without overselling. You can oversell but once everyone starts using there full allocation you have to be able to remain at the same quality level as when they first signed up thus increasing your allocation and dipping into profit margines!
    Axcelx Technologies - James
    Boston Colocation | Boston VPS
    Massachusetts Server Colocation, Dedicated Servers & VPS

  23. #23
    Cost does not equal Quality. Don't be fooled into thinking that an expensive host is a reliable one.

    It IS possible to find quality hosting at a low price, but it is a very hard and confusing journey.

  24. #24
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    Quote Originally Posted by JohnCrowley
    Eh, we charge $20 - $200/month for shared hosting, been doing it since 1995, and still signup new accounts each day. And we offer less than 1 GB of space on all plans and less than 50 GB of monthly transfers. Offer great service, exceed clients' expectations at every possible turn, and you'll develop an "uber loyal" client base that will do the selling for you.

    - John C.
    John, I couldn't agree with you more! Very well put. I honestly feel most people today just don't understand hosting and getting their business up on the Internet. It's only natural for people to look for a bargain, so when they look into something they don't understand and see something like what John's company offers and then see someone else offering 10 times the space and b/w for less than half the price they naturally think their getting a bargain. Then they get emailed a user name/password (if they're lucky) and URL to login to a control panel with no idea what to do with any of it. Try and get support or help, OK, maybe, try and find their sites, again, maybe. Get fed up with bad service, help and support and if their lucky enough to find a place like this to vent, then we all hear about it and the host is shortly gone.
    Another bad thing with all these ridiculous offers, many people are beginning to think they actually need 20 GB/month to run a brand new static site when in actuality they wouldn't come close to 1 GB.
    I think people here and elsewhere need to take a closer look at places like John's company along with the handful of other people here that offer realistic plans with realistic pricing. Our company has been around since 2001, I've seen a lot of hosts come and go, now I could be wrong but to the best of my knowledge there's 5 hosts on here that I've never seen trashed, I wonder why that is?
    Jim - 2Macs H-Sphere Web Hosting
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  25. #25
    Quality v.s. Quantity
    - I would never come off this thread...

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