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  1. #1

    suggestions on my new plans and prices needed

    Hi! everyone

    I'm in WHT right from my college days. After lots of struggle I started my hosting business in my city. I'm bit successfull. I learnt how hard hosting biz is from my experience. As an expansion I'm planning to take my hosting business online. I cant price online customers the same I do for my local customers. So, I need your suggestions.

    if plans=="best" && price=="best" && service=="excellent" then
    return("successfull business")
    else
    return("Close ur biz and run away")
    end if


    yes, I feel the above is true. What do you think guys ?

    I worked and cameout with plans for Windows and Linux hosting. I'm posting it here.
    • Guys tell me your suggestions about the plan features and pricing. Is it over priced or under priced ?

    • Does feaures part need any improvement ?



    Plan 1:
    =====


    Space : 100 MB
    Datatransfer : 2GB
    Hostable domain : 1
    Sub domains : 5
    No.of email ids : 5

    Windows:
    ------------
    Supported DB : Unlimited MS access, 1 MySQL (No SQL Server & PostgreSQL)
    Price : $2.60/Mnth

    Linux:
    -------
    Supported DB : 1 MySQL (No PostegreSQL)
    Price : $2.50/Mnth

    Plan 2:
    =====


    Space : 250 MB
    Datatransfer : 5GB
    Hostable domain : 1
    Sub domains : 10
    No.of email ids : 10

    Windows:
    ------------
    Supported DB : Unlimited MS access, 1 MySQL, 1 MS SQL Server, 1 PostgreSQL
    Price : $4/Mnth

    Linux:
    -------
    Supported DB : 2 MySQL and 2 PostgreSQL
    Price : $3.75/Mnth


    Plan 3:
    =====


    Space : 500 MB
    Datatransfer : 10GB
    Hostable domains : 3
    Sub domains : 25
    No.of email ids : 25

    Windows:
    ------------
    Supported DB : Unlimited MS access, 3 MySQL, 3 MS SQL Server, 3 PostgreSQL
    Price : $6.95/Mnth

    Linux:
    -------
    Supported DB : 3 MySQL and 3 PostgreSQL
    Price : $6.5/Mnth


    Plan 4:
    =====


    Space : 750 MB
    Datatransfer : 15GB
    Hostable domains : 10
    Sub domains : unlimited
    No.of email ids : unlimited

    Windows:
    ------------
    Supported DB : Unlimited MS access, 5 MySQL, 5 MS SQL Server, 5 PostgreSQL
    Price : $9.5/Mnth

    Linux:
    -------
    Supported DB : 5 MySQL and 5 PostgreSQL
    Price : $8.95/Mnth

    Plan 5:
    =====


    Space : 1 GB
    Datatransfer : 20GB
    Hostable domains : 20
    Sub domains : unlimited
    No.of email ids : unlimted

    Windows:
    ------------
    Supported DB : Unlimited MS access, 10 MySQL, 10 MS SQL Server, 10 PostgreSQL
    Price : $12.75/Mnth

    Linux:
    -------
    Supported DB : 10 MySQL and 10 PostgreSQL
    Price : $11.95/Mnth


    then, Lots of pre installed scripts, POP3, SMTP, Antivirus, Antispam support, ASP 3.0/1.1/2.0 support, PHP, Perl, CGI, XML, tens of components , customer can reallocate the disk space as per his wish to web,email and DB etc.,

    please spend few minutes and give ur suggestions.

    Thanks in advance
    Last edited by arulkumar; 12-15-2006 at 11:02 AM.

  2. #2
    Are there any differences between domains and subdomains? I think that you will offer 6 domains.
    Last edited by MTempster; 12-15-2006 at 11:09 AM.

  3. #3
    Join Date
    Sep 2006
    Posts
    77
    Have you done a business plan that shows profit on a $2.50 plan? From the previous financial plans I have done I cannot see how any business can even break even at such low prices.
    Mike Johnson - thehostinglist.com
    Reviews of the world's top web hosting providers
    Check our reviews at thehostinglist.com before you buy your web hosting package!

  4. #4
    Quote Originally Posted by MTempster
    Are there any differences between domains and subdomains? I think that you will offer 6 domains.
    yes ofcourse there are differences between a domain and sub domains. A domain is which creates your own identity on the web example: webhostingtalk.com where as subdomains is like this example: search.google.com

    which plan you want me to offer 6 domains ?

    thanks

  5. #5
    Quote Originally Posted by thehostinglist
    Have you done a business plan that shows profit on a $2.50 plan? From the previous financial plans I have done I cannot see how any business can even break even at such low prices.
    Ya, I know $2.50 is too low. I feel I can afford as I'm restricting the resources to my customers and my % of profit is low. Suggest me your price for this plan.
    Thank you for your comments.

  6. #6
    I will be more happy if you can suggest your price for these plans from your point of view.

  7. #7
    As far as I know subdomain and domain means the same. Sun domain=third level domain at least. All of them are domains. If you are going to provide 5+1 why don't you provide 6 domains. Maybe it is necessary in terms of marketing but it is the same in terms of webhosting.

  8. #8
    Join Date
    Sep 2006
    Posts
    77
    Your pricing will be somewhat determined by your business plan and the factors within it. For example are you going to be outsourcing support, phone support, live chat? Was payment processing fees will you have? There are a ton of variables you need to consider before you can set your prices.

    FYI it is better to regularly price your plans high, and then discount them for a sale. If your low level plan is $8.99 per month you can run sales for $2.50/month but you always have the option to end the sale and effectively increase your prices without having to change your entire business.

    If you become successful and gain many clients your expenses will increase because you cannot do everything yourself. When your expenses increase you will quickly realize that $2.50 per client is not nearly enough.
    Mike Johnson - thehostinglist.com
    Reviews of the world's top web hosting providers
    Check our reviews at thehostinglist.com before you buy your web hosting package!

  9. #9
    thanks.. I accept as the customer base increases expenses will increase. once again thank you for your suggestions

  10. #10
    Join Date
    Feb 2006
    Location
    Swellyville
    Posts
    2,340
    Your plans are good, however I see that in order for you to make good money would be to have loads of volume. Now you must turn your efforts to SEO and your marketing. That's the problem with low based plans like that. You have to make it up big time in volume.
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  11. #11
    Join Date
    May 2004
    Location
    Baltimore, MD
    Posts
    1,203
    Quote Originally Posted by arulkumar
    thanks.. I accept as the customer base increases expenses will increase. once again thank you for your suggestions
    Just make sure that if you price the plans out, you'll profit if everyone buys the package with the highest space per $1. Example:

    Plan 1:
    Space : 100 MB
    Datatransfer : 2GB
    $2.50 (40 MB per $1)

    Plan 2:
    Space : 250 MB
    Datatransfer : 5GB
    $3.75 (66 MB per $1)

    Plan 3:
    Space : 500 MB
    Datatransfer : 10GB
    $6.50 (76 MB per $1)

    Plan 4:
    Space : 750 MB
    Datatransfer : 15GB
    $8.95 (83 MB per $1)

    Plan 5:
    Space : 1 GB
    Datatransfer : 20GB
    $11.95 (85 MB per $1)

    Assume you have a server with 80 GB drive, 60 usable by your users for $150/month.

    After you sell 13 accounts of Plan 5, you'll have the server paid off. (not counting fee's like PayPal).

    Make sure you kind of use the same method that I did to make sure you won't sell it out and be negative.

    Good luck bud!
    Automated Tendencies - Brand Management Agency from Baltimore, Maryland.
    Reputation Management Search Engine Optimization Pay Per Click Email Marketing

  12. #12
    Join Date
    Oct 2006
    Location
    Salt Lake City, UT
    Posts
    849
    I'm building my web hosting business as well. I started out with a similar formula, but there are many more things to factor in, eg; Server, Support, Software/Applications(ModernBill, etc..), Merchant/Gateway, Advertising, Taxes, Etc..

    Of course there are many more factors to consider, but I'd say spreadsheets are your friend on this one. As my mentor advised me to work on the plan prices LAST, I'd advise the same.

    If "Plan 5" only costs you $2 and you offer it for $11.95, that's a great profit if it sells... "IF IT SELLS!". Your marketing and sales are so crutual here.

    Focus on your business plan, cashflow management, & business systems first. Then the product.

    "Can you make a better hamberger than McDonnalds? Probably, but can you build a better business system?"
    | | i write code

  13. #13
    To summazise:

    • Make a biz plan

    • Decide the price

    • Then, SEO and marketing


    Thank you HostFrog, RefreshNet,siforek for you suggestions. Now I feel I want to recalculate the prices for these plans bcoz now I'm in reseller plan in future if my customer base grows then I need to go for a dedicated server. So, I should calculate the cost of maintaining a server and then price it for smooth biz in future.

    Can anyone tell me what are the costs incurred in maintaing a server.
    • Server hardware cost (HDD+RAID+RAM ....)

    • Software costs (Win/Linux, SQL server, Control panel)

    • SSL certificates


    then ??

  14. #14
    Join Date
    Oct 2006
    Location
    Salt Lake City, UT
    Posts
    849
    Quote Originally Posted by arulkumar
    Can anyone tell me what are the costs incurred in maintaing a server.
    Depends on the server. I'd suggest getting a custom quote. I'm currently working with http://www.softlayer.com for a business solution. If you're only offering Shared hosting service than it can be quite reasonable. If you're going for a fully managed, Woodcrest 5160 w/16gb memory, 1.5tb storage & 100mbps unmetered link than your investment is a significant one.
    | | i write code

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