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  1. #1

    Reasonable Hosting Plans ?

    Hello Everybody.

    I am starting a WebHosting site. I am actually a reseller.

    And i am looking for some suggestions on announcing my hosting plans.

    I am plannig to offer 1500MB Bandwidth for every 100MB space for $1/mo

    (ie) A 200MB space plan will have 3000MB bandwidth and will cost $2/mo

    Similarly a 1000MB space plan will have 15000MB bandwidth and cost $10/mo


    Are these plans reasonable and good ?


    Thanks,

  2. #2
    Join Date
    Jun 2004
    Location
    U.S.A
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    1,463
    Its hard to say if they are "good" or reasonable. You have only posted the amount of space and bandwidth allotted, you have not mentioned any other included features.

  3. #3
    Join Date
    Aug 2001
    Location
    California
    Posts
    1,136
    Hi Darkman,
    When you say reasonable, are you referring to the end user, or to you as a company. I think you need to figure out if you have X clients on X plan, what your expenses and what your profit is. Then take it a step further, and see is the pricing able to scale well, after you factor in things like support, maybe a dedicated server in the future, an office etc.. With a $1 price tag, you will have a little chunk go away towards credit card processing fees, and stuff like that, so I would say raise your prices.

    -Steven
    http://www.insiderhosting.com
    BGP Blend of Telia, GTT, Zayo, and Cogent in One Wilshire, Los Angeles!
    True Definition of Managed Hosting
    Proudly Offering Shared Hosting, Reseller Hosting, VPS, Dedicated Servers, and Co-location

  4. #4
    Join Date
    Jun 2006
    Posts
    405
    Yes I agree $1 dollar plans really only mean a few pennies for you after fee's are taken out.

    Now if you make them pay it annually then there is more margin there for you. I would still consider rasing the price a little but you need to figure how many plans you need to sell to make a profit.

    Do not forget about the fee's involved per transaction either as with low dollar plans these take a big % of every transaction.

  5. #5
    Join Date
    Oct 2004
    Location
    Ohio
    Posts
    1,641
    Quote Originally Posted by insiderhosting
    Hi Darkman,
    When you say reasonable, are you referring to the end user, or to you as a company. I think you need to figure out if you have X clients on X plan, what your expenses and what your profit is. Then take it a step further, and see is the pricing able to scale well, after you factor in things like support, maybe a dedicated server in the future, an office etc.. With a $1 price tag, you will have a little chunk go away towards credit card processing fees, and stuff like that, so I would say raise your prices.

    -Steven
    This is great advice. Hosting is more than just figuring out how much space and bandwidth costs. Most new hosts who enter the market never take into consideration the other things that go along with running a hosting business, like support, growth, disaster recovery, and so on.

    Dont try to keep up with the Jones's, it will kill you in the end. Find your own little place in the market, and charge accordingly. Dont sell yourself short.

  6. #6
    Quote Originally Posted by Chris_M
    Dont try to keep up with the Jones's, it will kill you in the end. Find your own little place in the market, and charge accordingly. Dont sell yourself short.
    Jones's ?? Whats that ?

    Flankly, my reseller account gives me 3500MB space and 55000MB Bandwidth for $7/mo
    So i had those plans. Am i selling short ?

    I am having 4 plans in mind.
    200MB/3000MB - $2/mo
    500MB/7500MB - $4/mo
    1000MB/15000MB - $7/mo
    2000MB/30000MB - $13/mo


    How about these ?


    Thanks,

  7. #7
    Join Date
    Oct 2004
    Location
    Ohio
    Posts
    1,641
    Keeping up with the Jones's is an old expression. The bottom line is this, dont let your competitors determine your prices. If you think its profitable to provide support and services for $2 per month per account, go ahead. The first time a client on a $2 per month account submits more than 1 ticket per month, all profit is lost. Heck, even 1 ticket could kill off any profit depending on the nature of the ticket.

    Another thing you need to consider is payment processing fees. These alone will make a $2 account totally not worth the headache.

    I am not saying that you need to be the most expensive host around, but you really need to figure out who your target market is and charge accordingly.

  8. #8
    Oh. Ok.

    Thanks for those valuable advice.

  9. #9
    Join Date
    Dec 2006
    Location
    Canada
    Posts
    144
    And remember that you should get a profit as reseller. Keep it mind

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