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  1. #1

    Question How much is too much?

    I want to convince my boss that he is going to be charging people too much money for hosting. ($150 per month) for basic services. To give perspective the services he'll be looking to provide won't match that of a $5. per month Angelfire acct.

    Personnally it's unethical, I hate to feel that I'm robbing people.
    Uneducated consumers make me angry because they fuel pricing like this.

    Does anyone have something like an industry price scale that shows what kinds of hosting accts would require hugh monthly payments? I want to offer my boss perspective. I'm not interested in an individual company rate but industry rates.

    Another $150 per for average services can one hope to actually keep customers very long? I wouldn't think so.

    Also I'm interested in any resources to learn more about the biz of hosting. Thanks,


  2. #2
    Join Date
    Jun 2000
    Caledonia,Ont, Canada
    Personally what I would do is go around on internet.. get the price charts on say 10 companies.. 5 smaller ones, and 5 larger ones.. don't look for just cheap prices look for a good average.. Perhaps the first 10 results in for "hosting"

    Throw the results in a chart and give it to your boss. I'm sure he will get the point that way.
    [ Jason Berresford | Admin ]
    [ [email protected] ]
    [ (905)765-8140 ]
    [] [Can-Host Networks]

  3. #3
    Join Date
    Jan 2002
    I would say if he gets $150.0 a month for a shared hosting plan then the people that are signing up probably have no clue as to what is really out there or there budget is huge and really just dont care.. Just take a look the special offers forum and you will get a idea of what cheap prices are and then just kind of go look at different hosts and see what they are charging.. While I have heard of hosts charging 50.00 plus for small shared hosting plans I dont think you would get too many customers.. anyway good luck and try and knock some sense into your boss.. let him know that its a very crowded market and reality is going to end up hitting him in the face..

  4. #4
    Join Date
    Aug 2000
    Tacoma, Washington
    Actually you'd be suprised how long some people will stay with a hosting provider that gouges like that - as long as they don't know any better. To a very large amount of the population the internet is still little more than something "they heard about on the news". In the hands on the right salesman he could collect quite a few customers and be retiring to Florida in no time.

    But yes, I do understand your feelings. I'd find it pretty hard myself to sleep at night knowing we were costing people that much money.

    As for industry standards.. there isn't any really, and I'm glad there's not. I'll explain.

    Hosting providers rent and buy their equipment from a vast range of sources. Prices for that equipment range from less than $100 a month per server leased, to hundreds of dollars. Some buy their servers outright, and colocate, some buy datacenters and fill them.

    All the end of the line is the price per account on the website's of various hosting companies. Some guys feel a 10% markup over cost is fine, while others want at least 50% or more is the way to go. Depending on the initial pricing of equipment, staff, merchant fees, then the % markup, you end up with the price.

    I feel our own pricing is around the 'middle of the road' - not cheap, not overpriced, but that's only from observation. I can't claim I've looked at more than a few hundred hosting companies in my time out of the thousands that populate the net now.

    Greg Moore
    Former Webhost... now, just a guy.

  5. #5
    Good enough all. I've already begun to collect other hosting rates. In fact I've got a note on my monitor this morning.

    " me RE: MCHost vs. Verio - Derick" (my boss)

    Verio's charging him $149. per month for their virtual private server,'s a link to the features

    If i'm not mistaken, and I very well could be sense this is not my area... I'm a web designer, the services Verio is offering is no different than mchost or any of the other companies. (Why would someone ask a web designer to be the server administrator/web master? )

    Being new to this however, I'd be concerned that mchost and some of the others didn't have the documentation to walk me through some things. For example, as I write this I'm having a live chat with a Verio vps rep asking some of the same questions I'm posting here. And get this... she contacted me! WOW, I like that now.


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