In one year I went from budget host to expensive host and didnt even change prices!
Isn't it amazing? When I first came to these forums one year ago I was concidered a budget host with prices so low they were unbelievable for some.
Nowadays when I advertise on WHT I have to put in lines like "you pay a little more, but you pay for quality" or whatever.
And I didn't even change my prices
An average small site seems to get hosted for $ 20.- per year these days (at least if you look at the requests forum).
That would be $ 1.66 per month.
Even if you have the cheapest RS server it'll cost you at least $ 200.- per month for a server. (99 basic, 65 cpanel license, 29 additional harddrive for backup, 29 aditional memory to keep things running)
So you'll need to put 121 customers on the server for that price to break even. Not counting the hours that go into supporting 121 customers.
Where does this end. Will we soon be giving money to customers for hosting with us
I have a question for you guys, if you are offering a package with 1GB bandwidth and 50meg space (UK based) what price would you charge if you wanted to be out of the budget market but not so over priced no-one would pay?
Ohh.. I put a thread like this more than 1 year ago , prices will be still go down, but you'll see more and more pople complaining about those host, the problem its not uneducated people looking for the world for a nickel, the problem are uneducated "host" who think that they can provide it.
Still BW cost around $1-$2 per GB depending the provider if you don't use cogent, and I dont want to offer cogent bandwidth.
I still think serious customers will pay the extra money to get REAL hosting instead of getting some $1 lifetime hosting. The ones who fall for the crazy-priced deals usually leave quickly, as they'll find an even better deal People in the local market will usually not bother to pay a bit more for hosting.
I think the problem is that simply the average person has no idea what it takes to run a hosting company and that also there website is not a neccessity. If someone was going to host a site called "Dougs Home Page" or "My Favorite Poem" than of course they are not going to understand or be willing to purchase a $30 dollar a month hosting account that they can do with out and dont feel is worth the money.
But take a business or a prof. that needs quality and they wont touch that $2 a month account.
Best way to look at it is that based on your cost, quality, market, target audience, and business plan you need to descide which end of the spectrum to advertise and gain business from.
Middle road normally doesnt work in my opinion... why, you offer a cheap solution at .95 a Gig. to an average "My Favorite Poem Customer" and they might send you one email a month regarding something like "Whats my url again?"... But you try to sale at that rate to a business that is going to us 30GB a month of transfer and require you to answer emails, support, tech issues, and be on call 24/7 and you will not get your money out of it....
But on the flip side,, sale a $50 dollar a month account to a business and your fine, but try and use the same plans in the average market and you can hang it up.
Your prices are not too high or too low in my opinion ever, just not appropriate for certain markets or customers.