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Depreciating Hosting Prices = Trouble?

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  #1  
Old 03-20-2008, 02:34 PM
Sentric Sentric is offline
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Depreciating Hosting Prices = Trouble?


Web hosting can be purchased now for $.50/month, $6.00/year... when does hosting completely lose its' value?

Does it bother some, that my 10 year old brother makes more selling a cup of lemonade in the summer than some do by selling a web hosting account? You spend hours setting up your server, installing software, setting up automated billing systems, while he mixes water and artificially flavored lemon powder in minutes, and profits instantly.

...He doesn't even offer 24/7x365 phone support, FAQ's, or trouble tickets!!

How about the fact that he makes three times as much ((in a week)) than some of these hosting companies do in a year?

Maybe lemonade is just where it's at...

Don't get me wrong, my brother is very smart, and business savvy... BUT... when do we call it quits with these ridiculously low prices? When does it become more trouble than what it's worth?

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  #2  
Old 03-20-2008, 02:37 PM
Encrypted Encrypted is offline
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The hosting business is very competitive and will always be this way. This is probably one of the cheapest types of businesses in the world to open ($300-400).

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  #3  
Old 03-20-2008, 03:06 PM
TmzHosting TmzHosting is offline
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First they say prices are too high now they say prices are too low. What do you guys want!! Just kidding. Well everyone is looking to attract costumers so they will do anything.

- Daniel

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  #4  
Old 03-20-2008, 03:10 PM
imountain imountain is offline
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The turnover rate in this industry is quite high, many hosts that startup during summer break are done by Christmas vacation.

Despite the downward price trend, we've increased our pricing to provide a better service...it's all about finding the right niche.

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  #5  
Old 03-20-2008, 03:16 PM
BudWay BudWay is offline
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Quote:
Originally Posted by Sentric View Post
Web hosting can be purchased now for $.50/month, $6.00/year... when does hosting completely lose its' value?

Does it bother some, that my 10 year old brother makes more selling a cup of lemonade in the summer than some do by selling a web hosting account? You spend hours setting up your server, installing software, setting up automated billing systems, while he mixes water and artificially flavored lemon powder in minutes, and profits instantly.

...He doesn't even offer 24/7x365 phone support, FAQ's, or trouble tickets!!

How about the fact that he makes three times as much ((in a week)) than some of these hosting companies do in a year?

Maybe lemonade is just where it's at...

Don't get me wrong, my brother is very smart, and business savvy... BUT... when do we call it quits with these ridiculously low prices? When does it become more trouble than what it's worth?
I too was thinking in goin into the "farm" biz, the people in the world are getting too damme ungly to deal with (to say the least).

I was looking at tv other day and saw that a guy had a small grape farm that was worth US$40Mi.

And I said ****! This guy life most be real hard....!!!

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  #6  
Old 03-20-2008, 03:30 PM
sgarbus sgarbus is offline
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Quote:
Originally Posted by imountain View Post
Despite the downward price trend, we've increased our pricing to provide a better service...it's all about finding the right niche.
Ditto. Not everyone has decreased their prices and not every customer is looking for the same service. This is a huge industry and I believe the customer will always have a choice.

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  #7  
Old 03-20-2008, 03:33 PM
Mysteerie Mysteerie is offline
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Those type of host that offer that amount usually don't last. Like others said, it's all about your niche.

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  #8  
Old 03-20-2008, 03:53 PM
WireNine WireNine is offline
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One day web hosting will be free, and I will have the first data center on the moon

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  #9  
Old 03-20-2008, 03:54 PM
cloudrck cloudrck is online now
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How would you know how much a hosting company makes in a year unless they disclose their earnings?

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  #10  
Old 03-20-2008, 03:58 PM
rrhodes rrhodes is offline
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Quote:
Originally Posted by WN-Ali View Post
One day web hosting will be free, and I will have the first data center on the moon
Put me on the mailing list. I want my site hosted from the moon.

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  #11  
Old 03-20-2008, 04:58 PM
tjthayer tjthayer is offline
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Quote:
Originally Posted by WN-Ali View Post
One day web hosting will be free...
Yes, and it will be called Geocities.

Quote:
Originally Posted by WN-Ali View Post
...and I will have the first data center on the moon
Not a bad idea actually. If I remember my astronomy correctly, the dark-side of the moon is always dark, and on the light-side of the moon there is always light.

This would be a great place for those "green hosts" to set up 100% solar powered data centers. As an added bonus - no clouds.

On the other hand, I would imagine the server response lag time would be a bitch.

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  #12  
Old 03-20-2008, 06:34 PM
MikeDVB MikeDVB is offline
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Quote:
Originally Posted by tjthayer View Post
On the other hand, I would imagine the server response lag time would be a bitch.
Inter-planetary optical transmissions... Fibre optics without the fibre... Radio waves would take a while, but if it were lasers or some form of light, and you got good reception it wouldn't take long

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  #13  
Old 03-21-2008, 02:47 AM
Sentric Sentric is offline
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Haha, great posts... I really have to agree with imountain... we've pretty much done the same thing. You just have to do something to give yourself a bit of an edge, and find a niche. Maybe we can't say our prices are the lowest... but we can certainly take great pride in their value... with customer support/hardware/software as our focus, we price our services accordingly.

I just thought it was a little humorous to see some of the wild prices today, and wanted to see what everyone else thought... I'm not alone

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