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  1. #1
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    Is it worth is to raise prices and provide better tech support and faster servers??

    We're looking into 24x7 staff shortly and a move to faster quality servers. I was wondering what other WHT had to say about this. Should I hire 24x7 tech support and move to faster more expensive servers and raise prices?? Surely, it would be better for the client. But it seems there are so many people who want cheap, cheap, cheap, that not as many people care about quality. Can anyone give out a percentage of people looking for a web host who are looking for quality instead of quantity(and cheap prices)? Thanks for anyone's opinions.

    - Mike

  2. #2
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    New York, NY
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    Hello,

    If you want to market your business on WHT, then forget about higher prices. Everyone here is just looking for umetered blab, unmetered blab, for US$ 5.00 per month.

    But out there, you can find too many people who are willing to pay well, instead get reliability, and superior custoemr service.
    Amir Golestan
    Executive Director | Micfo
    delivering the divine hosting experience™ | AS53889
    www.micfo.com

  3. #3
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    Yes, I have to agree with HeadMaster. Most people at WHT are looking for the cheapest prices out there, maybe even a free host. If you do advertising out of WHT, you might be able to raise prices. However, I wouldn't consider raising prices until your company has a good reputation and are well-known. Or else, how are they going to know you have great tech support?
    Matt De Leon
    GreekComm - http://www.greekcomm.com/
    Online Community for Greek Fraternities and Sororities.

  4. #4
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    its called capitalism lol we want it cheap so we can resell it and make more profit ;-)
    -Robert Norton
    www.SophMedia.com

  5. #5
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    I think the only occasion you would want to start out using higher prices is if you are dedicated/managed servers.... like Rackspace.

  6. #6
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    Where do you think is a good place on the web to advertise "quality" hosting?

  7. #7
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    No. Some people at WHT want everything for under $10, but after a while, people come to appreciate that they have to pay higher prices for quality bandwidth, quality hardware and quality support.
    Matthew Russell | Namecheap
    Twitter: @mattdrussell

    www.namecheap.com - hosting from a registrar DONE RIGHT!

  8. #8
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    Then again, you don't want to look like you gradually raise your prices for your hosting plans. That might look bad. Maybe it would be best to start high, then if you need to, go low.
    Matt De Leon
    GreekComm - http://www.greekcomm.com/
    Online Community for Greek Fraternities and Sororities.

  9. #9
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    Everyone here is just looking for umetered blab, unmetered blab, for US$ 5.00 per month.
    HeadMaster ,

    I've just check your prices and you are one of the people that give everything for nothing:

    200 MB Storage space
    15 GB Monthly Traffic
    150 E-mail Boxes
    FREE Domain!
    ...

    7.95/mo

    and this is much better :

    4 GB Storage space
    100 GB Monthly Traffic
    Unlimited E-mail Boxes
    FREE Domain!
    ...

    44.95/mo

    The people want to get everything for nothing because there is somebody out there to offer it!

    Peter

  10. #10
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    y don't u ask your clients?

  11. #11
    no, rasing prices will only make it harder for you to get more clients

  12. #12
    I get tired of seeing all these plans for like $3.95 or $7.95 for lots of space and bw. Its going to be hard for a company to survive on such low prices. We need to stay in business for a long time, and offerin hosting at $3.95 (with lots of space and bw) would not allow us to stay in business very long. By increasing your prices, and that gives your customers better support and uptime, then yes in my opinion, it would be well worth it. Our customers want quality first.

    Just my .02...

  13. #13
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    I think there is defenatly a market for higer price hosting plans. people don't really care about paying a little more when it comes to such small amounts, and if they do care I'm not sure you want to work with them so much, because this is the clients who will suck you for everything you got you need to grab your niche market and work on it. I think there's much more growth potantial in quality than in qunatity.

  14. #14
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    I am a reseller and have chosen a company based on QUALITY not quantity. Unless you have dedicated servers you ca not compete with the $3.95 a month people.

    Instead I focus on QUALITY and SUPPORT, even to the extent of writing scripts for my clients and going way above and beyond the call of duty.

    I feel its important to get an 'angle' and run with it, too many cheap skates out there so going for quality and service, is in my opinion the better option.

    I tried cheap and nasty and lost lots of clients, people aren't gullible and won't put up with downtime and poor server reliability. Too many hosts and resellers focus on profit rather than support. In the end quality and support will equal profit.

    Pete

  15. #15
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    Hte qunaitty guys will sophicate each other.

  16. #16
    Originally posted by insider_hush
    no, rasing prices will only make it harder for you to get more clients
    How much worth is it to survive?
    Marc Wyss - [email protected]
    MCHost Inc - Experts in Private Label Reseller Plans
    http://www.mchost.com

  17. #17
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    *

    Hte qunaitty guys will sophicate each other
    Is that a foreign language or are you just illiterate? BTW some of the text on your site is very difficult to read, try a font other than Times New Roman and try at least 11px.

    Pete

  18. #18
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    Originally posted by voxtreme-matt
    No. Some people at WHT want everything for under $10, but after a while, people come to appreciate that they have to pay higher prices for quality bandwidth, quality hardware and quality support.
    I have to agree with Matt. This forum is filled with people looking for hosting for $10 a year and unmetered everything, and $90 servers with top notch support and multiple bandwidth providers, and those same people are here day and night screaming "my servers down", or "My host won't respond to my emails". What do you expect? If you purchase a cheap server with 100% Cogent bandwidth, don't get mad when they have network trouble, have a party when they don't. You know before you purchase the product that there is no way the host can provide what they claim, but you take a chance, and ruin your business.

    mas3000, to answer your question, go for the support and better servers. Not only will you provide your current customers with better support, but you will attract a better breed of customers. Ones that realize you have to spend money to make money, and don't want the world for $10 a year so they can host porn and warez sites on them.
    A signature will go here soon...

  19. #19
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    Originally posted by Kiwi


    How much worth is it to survive?
    I don't think you should post on this thread Marc as you have clearly shown you know nothing at all about quality, at least you never when I hosted with MCHOST. Are your servers still overloaded and always down? Do you still lie and cheat your clients?

    If you had one minute taken off your life for each time your servers were down you would be dead 100 times over!

    All the best my friend

    Pete

  20. #20
    Pete: Haven't seen you for almost half a year, where have you been? Almost like a miracle, that particular server never had any more problems after you moved your domains to another provider and now has 60+ days uptime, so its all good

    Back onto the thread, there are too many companies thinking that WHT is the limit of the hosting industry and they match their prices depending on other companies offering their services here.

    It doesn't matter if you offer 100MB space and 3GB bandwidth for $30/month ...you will most probably get the exact same amount of clients with a good marketing strategy, you'll simply target a different audience.
    Marc Wyss - [email protected]
    MCHost Inc - Experts in Private Label Reseller Plans
    http://www.mchost.com

  21. #21
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    Originally posted by vwh


    Is that a foreign language or are you just illiterate? BTW some of the text on your site is very difficult to read, try a font other than Times New Roman and try at least 11px.

    Pete
    Well I have noticed that my typos attracted your attention, maybe thats a good marketing startegy . Thanks for the comments . Which site are you refferring to, empirehost or empirecommece? And where is not clear?

  22. #22
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    Originally posted by Kiwi
    Pete: Haven't seen you for almost half a year, where have you been? Almost like a miracle, that particular server never had any more problems after you moved your domains to another provider and now has 60+ days uptime, so its all good

    Back onto the thread, there are too many companies thinking that WHT is the limit of the hosting industry and they match their prices depending on other companies offering their services here.

    It doesn't matter if you offer 100MB space and 3GB bandwidth for $30/month ...you will most probably get the exact same amount of clients with a good marketing strategy, you'll simply target a different audience.
    If you recall I had 2 plans, Rome and Tahiti, both of which ended up with way too much downtime. If you recall, you blamed MailMan then after that spammers, then after that all downtime was disguised as 'maintenance'. It simply wasn't good enough, you have lost a customer for life, I doubt you care at all as you obviously have many others. I am sure you have many happy customers but you should have looked after the ones you had much better.

    I also doubt that the servers suddenly healed themselves after I left, the reason I say that is because all my sites, which weren't many anyway were mega low resource users.

    Pete

  23. #23
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    Originally posted by sharkman

    Well I have noticed that my typos attracted your attention, maybe thats a good marketing startegy . Thanks for the comments . Which site are you refferring to, empirehost or empirecommece? And where is not clear?
    http://www.empirehost.com/linuxhosting.htm this page is hard to read. I am using IE6, Windows XP with a 15" LCD monitor at 1024 screen res. You should use px or em not pt for fonts.

    Pete

  24. #24
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    Thanks pete, I will take a look at ti, I apprecaite you comments

  25. #25
    While I've been reading these forums for a few weeks now, I've only recently begun posting. So, with that said, feel free to rip me a new one if you don't like my post. I won't be the one looking stupid.

    First, my qualifications on the subject:
    4 years running a hosting company that recently became profitable.

    Second, my opinion on whether high volume cheap accounts or low volume expensive accounts are the way to go.

    We've done it both ways, but have found that price becomes a filter through which you determine what kind of customers you get.

    While there are exceptions for everything, we've found that, in general, a low price will attract a less desirable customer.

    However, if you design your plans right and closely manage your servers, the low buy in can be the hook to get someone to buy in at a higher dollar amount later when they decide they need more.

    With a high price (and no desirable low price starting point), you will get less customers. Less customers is good if you want to provide that "high touch" support experience and crazy wonderful uptime (provided you know what you're doing). It can have the unexpected impact that you have no reputation because you have so few people using your services. That can be dangerous if not appropriately compensated for.

    Over the years, this is how we did it:

    1. We started with a single relatively low priced account (4 years ago that was $14.95 a month for 100MB).

    2. We raised our prices about once a year, but added in more features, more disk space, and other things to justify the price increase.

    3. At the same time, we introduced new lower priced account versions so that the price sensitive customers would have a downgrade path to maintain their low prices.

    4. When we felt that we were beginning to reach the maximum tolerance level for price increases, we backed off our pricing just a bit across the board to keep everyone happy without significantly cutting into our cash flow in the process.

    The key to the whole process was that for every price increase, we added value. We usually added more perceived value than the price increase amounted to.

    We did have some cancellations, but they were usually combative and otherwise undesirable customers.

    Overall, we've managed to come out ahead. We have happy users, great support, excellent uptime, and workable cash flow.

    Some users of this forum would balk about the way we have done our prices increases, but I would counter with this:

    Is it so unethical to raise prices to match the perceived value of a service? There is nothing unethical about making a profit and pleasing the customer at the same time.

    Face it, if all the hosts in this forum didn't make a profit, this forum wouldn't exist and you all would be out of a job.

    An odd fact of marketing: Increased prices often result in increased perceived value to a certain extent. Just make sure you live up to the expectation or a former customer will come to this board and turn the nasties on you. Sometimes that's just unavoidable, as evidenced by this thread.

    So, to sum it up, make a profit. Do what you're comfortable with. If you have the systems and people to handle high volumes, you could get away with doing cheap hosting. Just make sure you have an upsell. If you have to raise prices, increase the perceived value of the account more than the price increase and you will generally keep the customer. Make sure that you also have an account that the customer can fall back on if they can't afford or won't tolerate the price increase. Also make sure you always have an easily followed upgrade path so you don't lose a customer because they "outgrew" your hosting plans.

    Hopefully this information has been useful to you. I enjoyed writing it.
    Sincerely,
    Andrew Kinney
    CTO, Advantagecom Networks
    http://www.SimplyWebHosting.com

  26. #26
    Join Date
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    697
    Originally posted by vwh


    If you recall I had 2 plans, Rome and Tahiti, both of which ended up with way too much downtime. If you recall, you blamed MailMan then after that spammers, then after that all downtime was disguised as 'maintenance'. It simply wasn't good enough, you have lost a customer for life, I doubt you care at all as you obviously have many others. I am sure you have many happy customers but you should have looked after the ones you had much better.

    I also doubt that the servers suddenly healed themselves after I left, the reason I say that is because all my sites, which weren't many anyway were mega low resource users.

    Pete
    It is very hard to maintain a server when you don't know what kind of scripts your clients are running, let alone your clients' clients. MCHost is a good company, and I think you are wrong stating that Marc does not care that you left. Every web hosting co. owner is pained when a customer leaves. It is just one of those things that leaves you with a dis-satisfied taste in your mouth, and a little voice in your head saying "you could have done better". Even when I have a customer leave that was costing us more than he/she was worth, it still gives me "That Feeling" (which I am sure many web host co. owners know).

    Even though Marc has a very successfull company with many many clients, I am sure he had that same feeling I have described above when you left.

  27. #27
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    May 2001
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    Originally posted by advantagecom
    While I've been reading these forums for a few weeks now, I've only recently begun posting. So, with that said, feel free to rip me a new one if you don't like my post. I won't be the one looking stupid.

    <snip> sorry, too long </snip>

    I just had to add this: Great post advantagecom! It really was excellent... well constructed, with lots of information. You have the right idea (albeit you probably know more about hosting than I do). I truly enjoyed your post, and look forward to seeing more from you in the future!

    Thanks!

  28. #28
    Join Date
    Jul 2002
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    Andrew,

    Finally a post from someone that seems to have some business sense. I really like the statement about what kind of customer is attracted to the lowest priced hosts. The hosts overing unlimited everything for $5 a month always seem to have more people abusing the servers than hosts that actually charge a reasonable rate. Keep up the good work.
    A signature will go here soon...

  29. #29

    Re: Is it worth is to raise prices and provide better tech support and faster servers??

    Originally posted by mas3000
    Should I ... raise prices??
    Not everyone in the world is represented by most of the requests you see at WHT on a daily basis. Ideally, a company would start out with pricing at a level that would give them the ability to provide good equipment, good support, good growth, and so on. However, there is nothing at all wrong with raising prices (assuming you intend to grandfather in existing customers). People will expect more if they pay more, but with commitment, it's entirely possible - desirable, in my opinion - to build a successful company on prices that do not give the impression the host is taking things so low as to be unprofitable and thereby become a concern for the client.
    Annette
    Hosting Matters, Inc.
    Superior service. Sensible price.

  30. #30
    Join Date
    Apr 2002
    Location
    Chicago, Illinios
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    Hey, thanks for everyone's opinions. I've decided to go with a host in NAC's datacenter which I heard was suppose to be an excellent datacenter. The server specs are:
    Dual P3
    1GB RAM
    RAID

    These plans aren't official, but include 24x7x365 support in the following:
    25MB Space
    1GB Transfer
    $4.95/month

    100MB Space
    5GB Transfer
    $9.95/month

    200MB Space
    10GB Transfer
    $17.95/month

    500MB Space
    25GB Transfer
    $35.95/month

    1000MB Space
    50GB Transfer
    $49.95/month

    What do you think of the prices? Any comments and opinions would be appreciated.

    And what do you think about the datacenter and server I chose?

    - Mike

  31. #31
    With your support offering included, those prices should be competitive. Just make absolutely sure you're covering costs. If you plan to oversell, make sure you have real world numbers to back up the amount of overselling you plan to do.

    Our prices are a tad lower for some of our plans, but we don't offer traditional 24x7 support. We do have 24x7 monitoring, however.

    We make people pay a per incident fee of $25 to page us outside our business hours. This fee covers lost sleep and the drive into the office (if necessary).

    We compensate for that with a user forum that people can ask questions on (and get answers) most any time of the day or night.

    We're in the Pacific time zone, but we have customers all over the world that don't seem to mind helping out our other customers if they know the answer. When its 3AM for us, it could be noon for some of our customers, so it works out nicely.
    Sincerely,
    Andrew Kinney
    CTO, Advantagecom Networks
    http://www.SimplyWebHosting.com

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