Results 1 to 36 of 36
  1. #1

    * Price = Quality? How you judge?

    As a VPS provider want to understand more about the client behaviour and perception.

    Is price = service quality, or make simple, higher price = better quality?

    What do you think?
    ControlVM.com :: Cloud Hosting Reliable Xen VPS :: Serving Customer From More Than 40 Countries.
    Hosting Services Available in the USA ● Germany ● Malaysia ● Singapore and Hong Kong

  2. #2
    Join Date
    Jun 2009
    Location
    Turkey / Izmir
    Posts
    10
    Normal Price - Quality of Service because I prefer.

  3. #3
    Join Date
    Sep 2008
    Posts
    86
    Yes, I do believe that the higher the price the better the quality of services offered are. Some providers might offer lower prices and have a great network and / or good hardware, but one might find them lacking in the support area. I think a provider can offer high quality services in all areas (hardware, network and support), but this of course comes at a premium.
    Rock Solid Shared, Reseller and VPS Solutions
    Cpanel/WHM, Fantastico de Luxe, Installatron, RVSkin, RVSiteBuilder, 24/7 Support
    FFMPEG, ImageMagick, PHP5, Ruby On Rails, Subversion, Trac, PDO, Zend
    DashingHost - Fast (dashing) Web Hosting

  4. #4
    Join Date
    Sep 2006
    Location
    Dallas, TX
    Posts
    333
    Price and quality are not always related. Sometimes the price is just what the market will bear. A company can spend lots of dollars on marketing to make an inferior product sell.

  5. #5
    Join Date
    Aug 2009
    Posts
    79
    I will very easily connect price to quality, because this is how the world is.

  6. #6
    Join Date
    Oct 2009
    Posts
    138
    In my mind, price and quality are two disjoint attributes. Windows costs money, Linux is free. Does that make Windows superior to Linux? Of course not.

    I look for a fair, competitive price where service is offered by a competent provider.

  7. #7
    Join Date
    Aug 2004
    Location
    Shanghai
    Posts
    1,449
    Quote Originally Posted by jeff-ay View Post
    Is price = service quality, or make simple, higher price = better quality?
    I don't think that with a high price, you will get a good quality FOR SURE, but with a price really low, you WILL get a bad quality FOR SURE. There's no way you can do support, pay for expensive bandwidth and expensive hardware in a good way if you don't have the necessary money for it.

    Quote Originally Posted by JoshZZ View Post
    In my mind, price and quality are two disjoint attributes. Windows costs money, Linux is free. Does that make Windows superior to Linux? Of course not.
    Your example is irrelevant, because you are comparing a software (which virtually doesn't cost any money once the programming is done) with a service (that has recurring costs, and this is without even talking about support).

    Thomas
    GPLHost:>_ open source hosting worldwide (I'm founder, CEO & official Debian Developer)
    Servers & our leading control panel and our Xen VPS hosting, which are already included in Debian and Ubuntu
    Available in: Kuala Lumpur, Singapore, Sydney, Seattle, Atlanta, Paris, London, Barcelona, Zurich, Israel

  8. #8
    Join Date
    May 2009
    Posts
    215
    Not neccessarily. There's many expensive hosts whose quality isn't so good. You may not get a great service cheap, but you can get them for a reasonable price. You need to get the balance between quality and price. There's no point getting the most expensive, advanced hosting packag if you don't need all the services they offer.

  9. #9
    Join Date
    Aug 2004
    Location
    Shanghai
    Posts
    1,449
    Why are you saying "Not neccessarily" when in fact you are saying the same thing as I did in another way?

    Thomas
    GPLHost:>_ open source hosting worldwide (I'm founder, CEO & official Debian Developer)
    Servers & our leading control panel and our Xen VPS hosting, which are already included in Debian and Ubuntu
    Available in: Kuala Lumpur, Singapore, Sydney, Seattle, Atlanta, Paris, London, Barcelona, Zurich, Israel

  10. #10
    Join Date
    May 2009
    Posts
    215
    Quote Originally Posted by gplhost View Post
    Why are you saying "Not neccessarily" when in fact you are saying the same thing as I did in another way?

    Thomas
    I didn't mean not neccessarily to what you said. I was referring to the original question, saying that it doesn't neccessarily come down to price only. So yes, agreeing with what you said.

  11. #11
    thanks for the respond. In fact, majority of the respond agreed that price is not equivalent to host quality. However, sometimes you have to compromise the service quality when come to the so call lower price offered by the provider because it is "cheap". But, in service industry people always deserved something perfect with minimum cost.

    Quote Originally Posted by gplhost
    but with a price really low, you WILL get a bad quality FOR SURE.
    I'm quite agree with this as the provider need to cover their cost and get the marginal profit because no "business" is no more than profit unless they are going for sponsorship, charity and so on. Or, think in different angle whereby the provider strategy to attract more client with one or two server going to zero profit!

    So, this is your own choice to go for "cheap" or "expensive" provider, yet, without compromising the service quality.
    ControlVM.com :: Cloud Hosting Reliable Xen VPS :: Serving Customer From More Than 40 Countries.
    Hosting Services Available in the USA ● Germany ● Malaysia ● Singapore and Hong Kong

  12. #12
    Join Date
    Oct 2008
    Location
    Singapore
    Posts
    4,521
    Price =/= Quality.

    Some providers may have high overhead costs which result in the high price, but that doesn't mean quality is present.
    LIMENEX WEB HOSTING
    Affordable High Performance Web Hosting in United States & United Kingdom
    Web Hosting | Reseller Hosting | Managed VPS | Managed Dedicated Servers | Cheap SSL Certificates

  13. #13
    i'll rather go for lower cost VPS, but not necessary famous host as i do believe the support can be more focus and the chances of overselling host will be lower (since it is not popular in the industry)

  14. #14
    Join Date
    Nov 2009
    Posts
    40
    Quote Originally Posted by jeff-ay View Post
    As a VPS provider want to understand more about the client behaviour and perception.

    Is price = service quality, or make simple, higher price = better quality?

    What do you think?
    I would say price = overall product quality... not just service. Think of it this way, if your customers are happy with the product, they won't need customer service and support, so you can save money there Of course, it would be up to you to make sure your products are top quality in the first place.

    On the other hand, if you're product is inferior, you might be able to get away with selling it (think shared hosting plans) if your prices are really low OR customer support is really good. In most cases, your customers will stick around for a while until they eventually figure out they're paying for crap and need a better server for their growing sites.

    Finally, if both your product and customer service is lousy, no amount will be cheap enough to attract customers to your company... UNLESS... you have a really huge budget for marketing and advertising! Just look at HostGator and GoDaddy

  15. #15
    Join Date
    Aug 2004
    Location
    Shanghai
    Posts
    1,449
    Quote Originally Posted by g-a-g View Post
    if your customers are happy with the product, they won't need customer service and support, so you can save money there
    This is not what I could see in our multi-years experience. Customers are asking you because running an Unix machine is not an easy thing to do. It's quite a complicated thing, and you always need advice.

    What makes the difference is if your customers have a lot of knowledge or not. If they don't they will ask.

    At the end of the day, what makes the difference is what customer you are targeting. If you target whoever, without any knowledge in hosting, you WILL get troubled. If you target geeks, they wont ask you more than the password that they forgot at max.

    We took over a company that was doing shared hosting in Paris. It was hell. For very few revenue each month, we get 100s of "how do I create an FTP account" even though they just need to click on "ftp accounts" enter the login and password, and then click ok. They don't even read the emails we send to them telling us where is the doc, how to do things, etc.

    Once, a customer, on the same email, told us that he didn't read our mail because he thought it was too complicated. On the same email, he asked for the same information that we wrote to him, and that he said he didn't read. Then I just did a cut/past of that same email, and ... he was very happy with it!!!

    Thomas
    GPLHost:>_ open source hosting worldwide (I'm founder, CEO & official Debian Developer)
    Servers & our leading control panel and our Xen VPS hosting, which are already included in Debian and Ubuntu
    Available in: Kuala Lumpur, Singapore, Sydney, Seattle, Atlanta, Paris, London, Barcelona, Zurich, Israel

  16. #16
    Join Date
    Nov 2009
    Posts
    40
    Thomas,

    I'm not familiar with GPLHost's products. However, just from reading your post, I'm guessing you offer managed hosting along with your servers. Obviously, if the server is managed, then customer support IS part of your product (or at least it should be)! It's not an add-on or a freebie. Customers paid for your support.

    For unmanaged servers, your only real job as a host is to make sure those servers stay up. Customers might need help doing some things every now and then, but for the most part, your customer service staff should never have to deal with tech support issues as long as your sysadmins keep doing their jobs properly.

    ...in an ideal world at least

  17. #17
    Join Date
    Feb 2004
    Location
    Sacramento CA
    Posts
    3,342
    I think that GENERALLY quality costs money. But I disagree that low cost equals bad quality/service. There are plenty of budget providers that may not have all the bells and whistles but provide excellent basic services. I'll use two of my accounts to illustrate, Knownhost and Ramhost. Knownhost is fully managed and pretty much "ready to go" while Ramhost is unmanaged and very basic. You'll need to do some of the legwork to get a website up and running. I do use them for very different purposes but I'm very happy with both of them.

    I really believe that both of these hosts are excellent values even though they are not on the same pricing level. Yes this is apples to oranges but it shows that you can find quality at every price point. Maybe 6 months ago I would have been skeptical about a $10 VPS but now I'm very happy with it. Performance and uptime are better then more then a few of the more expensive hosts I've had.

  18. #18
    Join Date
    Aug 2004
    Location
    Shanghai
    Posts
    1,449
    Quote Originally Posted by g-a-g View Post
    just from reading your post, I'm guessing you offer managed hosting along with your servers.
    I was just giving an example of support we had to do with SHARED hosting, so there's no managed / unmanaged type of thing here. About management btw, I'd say that we do semi-managed. We don't do anything on the customer's server unless he asks...

    Quote Originally Posted by g-a-g View Post
    Obviously, if the server is managed, then customer support IS part of your product
    Customer support is part of ALL hosting products, including the unmanaged ones. What do you do if there's some billing issue? Don't you think you'd have to reply? What do you do if the service is unmanaged, but the customer still asks for some advices? You just say "we are unmanaged, sorry..."? I don't think this is realistic, you always have to do some support, even though if unmanaged, you can refuse to ssh in the virtual server.

    Quote Originally Posted by g-a-g View Post
    but for the most part, your customer service staff should never have to deal with tech support issues as long as your sysadmins keep doing their jobs properly.

    ...in an ideal world at least
    You got the point. In reality, they do ask. Let me give you the last records of our support tickets so you get my point:

    - billing (a long time customer asking for a discount)
    - renewal failed (someone having issues with paypal)
    - pdf link not working (someone having his IE broken and can't download the invoice)
    - register global (someone with an issue with his php.ini)
    - credentials (someone that didn't get how to log into his VPS after setup despite our welcome email with a link to our wiki that explains it)

    All these are self-managed customer, but still need help, somehow.

    Thomas
    GPLHost:>_ open source hosting worldwide (I'm founder, CEO & official Debian Developer)
    Servers & our leading control panel and our Xen VPS hosting, which are already included in Debian and Ubuntu
    Available in: Kuala Lumpur, Singapore, Sydney, Seattle, Atlanta, Paris, London, Barcelona, Zurich, Israel

  19. #19
    Join Date
    Nov 2009
    Posts
    40
    Quote Originally Posted by gplhost View Post
    Customer support is part of ALL hosting products, including the unmanaged ones. What do you do if there's some billing issue? Don't you think you'd have to reply? What do you do if the service is unmanaged, but the customer still asks for some advices? You just say "we are unmanaged, sorry..."? I don't think this is realistic, you always have to do some support, even though if unmanaged, you can refuse to ssh in the virtual server.
    Who said anything about not having any customer support? I just said you can save money on tech support by not offering a flaky product in the first place Anyway, I'm starting to feel like we're about to take this thread away from the OP if we keep going like this, so I'll just stop here now, if that's ok with you, gplhost



    To the OP, here's my advice to you as someone who used to work for a CRM company:

    If you want to offer competitive prices to your customers and still be able to provide them the necessary tech support whenever they need that 'extra' helping hand, you should probably consider implementing a tiered pricing scheme for your managed support services. For example, offer help to all your customers, but don't guarantee results in a timely manner for people who don't pay extra for your services. Tell them SLA is 24 hours, or something like that. Likewise, for those customers who want/need your help and are willing to pay for it, make the SLA shorter and guarantee them results based on the support level they're willing to pay for.

    That way everyone's happy, and you can still advertise those low, low prices on your site

  20. #20
    Join Date
    Jul 2007
    Posts
    88
    It also depends on the products you're offering. If you're offering an every day Linux VPS with nothing special about it and it's un-managed, I would expect to see lower prices. However, if your product has something specific about it that clients may require or need, the price will be higher. It's all about what you offer, your target market and what you're willing to accept in terms of support.
    rootbsd.net :: BSD based hosting for smart people
    FreeBSD VPS :: FreeBSD and OpenBSD Hosting Powered By Xen
    IRC: #rootbsd on freenode
    twitter: @rootbsd

  21. #21
    Quote Originally Posted by rootBSD
    If you're offering an every day Linux VPS with nothing special about it and it's un-managed, I would expect to see lower prices.
    Not necessary so...unmanaged in fact put more flexibility and resources to the end user, pricing not necessary lower.
    ControlVM.com :: Cloud Hosting Reliable Xen VPS :: Serving Customer From More Than 40 Countries.
    Hosting Services Available in the USA ● Germany ● Malaysia ● Singapore and Hong Kong

  22. #22
    From the user point of view, price always the major consideration for purchase. First come to the mind is what can i get with the minimum cost or how to maximize the needs with minimum cost. In terms of quality, you'll never knew before you use it and that's why the "review" always come into the mind of purchaser.

  23. #23
    Join Date
    Jul 2007
    Posts
    88
    Quote Originally Posted by lovehost View Post
    From the user point of view, price always the major consideration for purchase. First come to the mind is what can i get with the minimum cost or how to maximize the needs with minimum cost. In terms of quality, you'll never knew before you use it and that's why the "review" always come into the mind of purchaser.

    Exactly!
    rootbsd.net :: BSD based hosting for smart people
    FreeBSD VPS :: FreeBSD and OpenBSD Hosting Powered By Xen
    IRC: #rootbsd on freenode
    twitter: @rootbsd

  24. #24
    From the user point of view, price always the major consideration for purchase. First come to the mind is what can i get with the minimum cost or how to maximize the needs with minimum cost. In terms of quality, you'll never knew before you use it and that's why the "review" always come into the mind of purchaser.
    This is the realistic world, I love you comment!
    ControlVM.com :: Cloud Hosting Reliable Xen VPS :: Serving Customer From More Than 40 Countries.
    Hosting Services Available in the USA ● Germany ● Malaysia ● Singapore and Hong Kong

  25. #25
    Join Date
    Aug 2004
    Location
    Shanghai
    Posts
    1,449
    Quote Originally Posted by lovehost View Post
    From the user point of view, price always the major consideration for purchase.
    I wouldn't say THE, but A. Big difference here. Also, it depends a lot on what type of customer you are talking about. Sure, many script kiddies in this forum want to save 1 buck if they can... But an enterprise doing 10s of thousands wont really care paying few dozens USD more a month, if the service is better, and vital to the business.

    Thomas
    GPLHost:>_ open source hosting worldwide (I'm founder, CEO & official Debian Developer)
    Servers & our leading control panel and our Xen VPS hosting, which are already included in Debian and Ubuntu
    Available in: Kuala Lumpur, Singapore, Sydney, Seattle, Atlanta, Paris, London, Barcelona, Zurich, Israel

  26. #26
    I think target needs to be reasonable affordable price with excellent quality. this will attracts customer and gives you a solid repo

  27. #27
    I believe now a day price become the first concern of the customers. What mentioned in this forum indicated the comment from both provider and customer and commented in their position. But, back to the realistic world, customer always look for the best options with minimum cost (as what mentioned by lovehost), and provider always want to maximize their margin. Anyhow, thanks for the good comment from everyone!
    ControlVM.com :: Cloud Hosting Reliable Xen VPS :: Serving Customer From More Than 40 Countries.
    Hosting Services Available in the USA ● Germany ● Malaysia ● Singapore and Hong Kong

  28. #28
    Join Date
    Jul 2003
    Location
    Waterloo, Ontario
    Posts
    1,116
    I think it all comes down to who you're targeting and what type of buyers' behavior they will exhibit when they purchase your services.

    If you're going after a niche that is price conscious, then price will matter the most and a lower price will land you more clients in the end (with proper marketing and execution). Then there are consumers that are just going for absolute peace of mind and price is not a factor and will look at a company's reputation over price. Now, most of those companies will be priced higher than the average host, but all competitively priced with the hosts that are in their ball park (in terms of reputation and service offering).

    You can always try going for the higher quality perception with low prices but then if you are not well known, people will think you're one of those hosts that breaks all your promises.

    Another way to approach this is to put your prices high and offer sales every month (or whatever period you decide). The price should always match your strategy and your marketing plans and not the other way around.

    Hope this helps.
    Right Servers Inc. - Fully Managed Cloud Servers in Canada. Join our White Labelled WHMCS Cloud VPS Reseller Program to become your own host!
    SSD Accelerated Cloud | cPanel/WHM | Softaculous | Idera Backups | Bitcoin & Litecoin Accepted

  29. #29
    it seems like to a large degree, it's all determined by reputation. even if you somehow have a low price but high quality, nobody's going to trust you if your reputation doesn't add up well. so it seems like there's a hidden marketing or reputation-building function that's central to the whole picture.

  30. #30
    Join Date
    Jul 2009
    Location
    New Zealand
    Posts
    2,320
    Price is most of the time equates to quality (with some exceptions), if the host is making profit they will invest more in quality infrastructure and hiring trained staffs. If they are making peanuts they you just get what you paid for.
    QuickWeb™ -We Host Servers Like a Boss!
    New Zealand - USA - UK - Germany Virtual Servers
    Worldwide hosting provider with proven 24x7 and 25-Minute Support!
    www.quickweb.co.nz and GETVZ - Complete VPS Package with SSD Drive

  31. #31
    Of course, in order to survive minimum profit margin is a must. Else, funding to expansion will die automatically.
    ControlVM.com :: Cloud Hosting Reliable Xen VPS :: Serving Customer From More Than 40 Countries.
    Hosting Services Available in the USA ● Germany ● Malaysia ● Singapore and Hong Kong

  32. #32
    Join Date
    Aug 2003
    Posts
    130
    Provider reputation beats price and quality

    Good reputation = no matter the price
    bad reputation = nor for free I would sign up


  33. #33
    Join Date
    Nov 2009
    Location
    Fairfax, VA
    Posts
    9
    I judge the hosting providers by the specs versus the price (it needs to be well balanced).

    The design of their site is also an influencing factor... I never trust sites with cheap looking designs.

    Sure it's not an accurate way to tell if they're a worthy host but it just makes me think what else they're too lazy to do if they haven't spent much time/effort on their product-selling presentation.

  34. #34
    Join Date
    Mar 2009
    Posts
    33
    Offering, Price, and Reputation should all come into play when making a decision. Like many have said a high price tag doesn't always mean high end service. You also shouldn't shop the bottom of the barrel hoping to find all the bells and whistles for a low cost. Hardware, Software, and Time all cost money so try to find a balance between a hosts offering, price, and reputation across the board.
    Top VPS Hosting Providers
    See some of the best VPS hosting providers and learn about VPS Technology at
    Best VPS Hosting

  35. #35
    Join Date
    Nov 2006
    Location
    search.php?do=getnew
    Posts
    1,238
    In most cases price does dictate quality, however it obviously is not always true. You can only know by experience or carefully judge from reviews and reputation.
    http://www.rskeens.com
    A casual blog mainly about the web hosting industry

  36. #36
    The issue some real cases happened and damage the reputation of a forum, such as the topic here http://www.webhostingtalk.com/showthread.php?t=905862.
    ControlVM.com :: Cloud Hosting Reliable Xen VPS :: Serving Customer From More Than 40 Countries.
    Hosting Services Available in the USA ● Germany ● Malaysia ● Singapore and Hong Kong

Similar Threads

  1. Replies: 0
    Last Post: 09-18-2004, 02:48 PM
  2. Replies: 0
    Last Post: 09-11-2004, 09:46 AM
  3. Replies: 1
    Last Post: 03-31-2003, 01:16 AM

Posting Permissions

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