Results 1 to 18 of 18

Thread: Price increase

  1. #1

    Price increase

    Is price increase in the hosting industry unheard of? Everybody is slashing prices or just maintaining price levels for years and I'm wondering if anyone has actually raised prices. Were you successful? Please comment.

  2. #2
    Join Date
    Apr 2007
    Posts
    3,513
    I have seen hosts do it, and you will lose some customers.
    You need a way of working out are you going to lose more than what your going to make.
    Also make sure your ToS allows a price increase.
    Alot of hosts have used fixed pricing as an advertising method and people like it.
    Personally I would never do it... just don't see why its needed as its not really an industry where your running costs increase too much over time.
    And if you need to change your budgeting is wrong...
    - Buying up websites, side-projects and companies - PM Me! -

  3. #3
    Join Date
    Jun 2001
    Location
    London
    Posts
    672
    Not so much in shared hosting, it's too competitive and highly price sensitive, and easy to switch to a new host.

    Price rises happen in colo though - particularly in the UK. Our costs in our London datacenter go through the roof every 24 months or so. The theory is once you've got all your gear in there it's too difficult to move, so you pay.
    Jo Stonehouse - Kualowww.kualo.com
    Shared Web Hosting, Reseller Hosting, Cloud VPS & Dedicated Servers
    UK: 0800 138 3235 ❘ USA: 1-800-995-8256

  4. #4
    Join Date
    Apr 2007
    Posts
    3,513
    Yeh also with colo there is big changes in power all of the time,
    which is one of the main costs for the data center.
    - Buying up websites, side-projects and companies - PM Me! -

  5. #5
    Kualojo, that is precisely we need a price increase because of rising colo costs as we own our hardware. If you lease your hosting servers then that is fine. But there are other costs as well like salary increases of staff, hiring new staff, benefits paid, rent, office internet connectivity, phones, utilities, etc. Another consideration for us is the stronger US$ dollar.

    Zanyhost, you are probably right with the budget. It needs an overhaul and cost control.

  6. #6
    Join Date
    Jun 2001
    Location
    London
    Posts
    672
    Quote Originally Posted by nowanda View Post
    Kualojo, that is precisely we need a price increase because of rising colo costs as we own our hardware. If you lease your hosting servers then that is fine. But there are other costs as well like salary increases of staff, hiring new staff, benefits paid, rent, office internet connectivity, phones, utilities, etc. Another consideration for us is the stronger US$ dollar.
    Yeah we faced the same dilemma with the colo costs, we ended up paying double what we were to host our equipment in London. We didn't raise our prices, ultimately we focused on ways we can reduce our costs. We managed to reduce our footprint and power consumption by moving a lot of servers to virtualized cloud environmets. We also agreed a longer-term contract with a price fix guarantee (although if the data center is bought out that'll most likely be null and void).

    If you can't decrease your costs, and your only option to sustain your business is to increase prices or move somewhere cheaper, I'd do your research and consider moving. Regardless of how many servers you have in the long term, it'll be worth it.

    We've moved hundreds of servers in the past, it's not fun, but with careful planning it is often in the best long-term interests.

    Hope that helps.
    Jo Stonehouse - Kualowww.kualo.com
    Shared Web Hosting, Reseller Hosting, Cloud VPS & Dedicated Servers
    UK: 0800 138 3235 ❘ USA: 1-800-995-8256

  7. #7
    some host are having that. they increase their price and there are some also who are become cheaper..

  8. #8
    Join Date
    Sep 2007
    Posts
    141
    If the prices have to be raised, raising the prices only for new orders works out well. This way the existing customers pay the same old price even for renewal of their accounts while the raised prices are applicable only for new orders.
    Cloud Hosting - Intelligent, Auto-Scalable & Pay-Per-Use | Near Unlimited Resources
    Dedicated Servers - Fully Managed UK Dedicated Servers
    Complete, Fully Managed Web Hosting solutions at eUKhost.com!

  9. #9
    Quote Originally Posted by Ryan-W View Post
    If the prices have to be raised, raising the prices only for new orders works out well. This way the existing customers pay the same old price even for renewal of their accounts while the raised prices are applicable only for new orders.
    That's what I usually do whenever I change prices. All my existing customers pay whatever they were paying before hand - this solves most of the issues.

    How much are you trying to increase your price by? You might also try and sell additional products during the buying processes - you know when the user is ready to order and before they can complete it, you send them through a series of offers. If done correctly, you are looking at a 50-60% conversion rate + and can even double the amount you make off your customer. Take a look at some of the extra services that GoDaddy offers and see if you can't do the same.

    You can even buy white label rights to some software and offer it as your own. Like for instance, you could buy website editing software and charge them $20 to download it. Or you can offer a comprehensive statistics program for an extra $2/month. you could even offer a 'mailing list' server for an extra $5-10/m.

    This stuff ads up.
    Download my eBook + Videos: Starting your own successful web hosting company.
    Learn from a web host with 7 years of experience.

  10. #10
    If you can offer an excellent service that others are not able to compete with, you might find customers will be willing to put up with a small price increase over time. After all, increasing running costs is not an alien concept to most people.

    The trouble is there are many, many businesses offering web hosting so it's very cut throat out there. It's in the customer's best interests to find the cheapest one for what they need so you'll need to give them a reason to stay with you should you increase your prices.
    Roy's Toys - For all your Nintendo needs.
    Hosted by GeekSRV.

  11. #11
    Join Date
    Nov 2007
    Location
    New Jersey
    Posts
    63
    1and1 just did it to my account...up by two bucks....I want my two dollars!! No, from my perspective, the two dollar increase didn't make me want to change hosts.
    www.kuzasneu.com
    Internet|Technology|Intellectual Property
    No comments, postings, or exchanges on this forum are intended to be nor shall they be viewed as constituting legal advice, nor does it establish a client attorney relationship. If you need legal advice, please contact your attorney.

  12. #12
    Join Date
    May 2008
    Location
    Hull, UK
    Posts
    222

  13. #13
    Join Date
    Jul 2008
    Location
    Eta Carinae
    Posts
    2,671
    we promise current clients a price lock so their rates are never to increase - but we have increased prices twice in the past year for shared hosting, it hasn't really done much and our old clients are still here and kicking - and we have a ton of new clients as well with no problem.

  14. #14
    Join Date
    Sep 2007
    Location
    UK
    Posts
    49
    I would also go the way others have suggested and keep current customers at the same price, and make new prices apply to new customers.

    If you have to increase the price for existing customers, you could try softening the blow a little by offering something extra, like more space, etc.

  15. #15
    Join Date
    Aug 2001
    Posts
    4,028
    Earlier this year we found ourselves in the same type of position. After exhausting ALL (and I do mean all) means of cutting costs, we had to cut slot counts for clients that signed up during a promo. In short, the price of their current service doubled.

    We likely lost a good 500 or so clients but I've learned since then that those are the clients we should be avoiding. They were outside of our target market to begin with.

    Loyal customers that truly rely on your customer service and quality will remain. If you provide enough notice and honesty they should have no problems.

  16. #16
    Join Date
    Mar 2009
    Location
    Toronto, Canada
    Posts
    2,570
    A price freeze policy would often keep current clients happy. We've raised prices before, also lowered prices before but we've always kept the prices for our current clients the same.

  17. #17
    Join Date
    May 2009
    Posts
    215
    Look at it form a clients point of view. They see prices shoot up but know they can get a cheaper service elsewhere. Obviously some will leave. It all depends on how good your service is and the amount of the increase - and how that compares to others.

  18. #18
    Greetings:

    If you compete on price, there will always be some one who can do it for less.

    If you compete on value(s), then having higher prices can be done far more easily than not.

    Thank you.
    ---
    Peter M. Abraham
    LinkedIn Profile

Similar Threads

  1. SALE! Beat the Price Increase! You Will NOT See This Price Again!
    By DaKine in forum Software & Scripts Offers
    Replies: 0
    Last Post: 12-16-2007, 09:04 PM
  2. FDC price increase?
    By Xandrios in forum Dedicated Server
    Replies: 9
    Last Post: 07-03-2007, 08:24 PM
  3. Do you want to beat the price increase?
    By Ganah ALLAN in forum Design Offers
    Replies: 0
    Last Post: 06-12-2004, 03:06 AM
  4. Replies: 2
    Last Post: 11-13-2003, 08:23 AM
  5. .WS Price Increase?
    By jmcmike in forum Domain Names
    Replies: 9
    Last Post: 05-24-2002, 07:25 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •