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webfu
I could be wrong but doesn't that work out to about $2.00 dollars a month ?
NCHChris
I'll give you a good example.
I used to work for a company that sold exclusivly to resellers, granted this was back in the day and everyone was happy with 1GB resellers.
Anyway we sold to this one fellow, who with his 1GB account preceded to offer 50GB Storage sites.
I always hate to see people that fall so easily for these kind of stunts, because that's exactly what they are. Now in some cases they are legitimate, but it still makes it hard to compete.
You have people like myself and other in this thread that have gone the extra mile to purchase 10/100 mbit unmetered connections, good server software being out done by "Crazy Larry's Cosmically Large Consortium of webhosting offering 50 GB Storage and 500 GB bandwidth for 2.99 (before the 50% off coupon of course). It's just not right.
But we have to consider everything competition, we can do as many public service announcements as we want to keep people away from those kinds of hosts, and it will all be seen as a gymick.
I used to work for a company that sold exclusivly to resellers, granted this was back in the day and everyone was happy with 1GB resellers.
Anyway we sold to this one fellow, who with his 1GB account preceded to offer 50GB Storage sites.
I always hate to see people that fall so easily for these kind of stunts, because that's exactly what they are. Now in some cases they are legitimate, but it still makes it hard to compete.
You have people like myself and other in this thread that have gone the extra mile to purchase 10/100 mbit unmetered connections, good server software being out done by "Crazy Larry's Cosmically Large Consortium of webhosting offering 50 GB Storage and 500 GB bandwidth for 2.99 (before the 50% off coupon of course). It's just not right.
But we have to consider everything competition, we can do as many public service announcements as we want to keep people away from those kinds of hosts, and it will all be seen as a gymick.
ttechpt
Quote:
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Originally Posted by NCHChris
I'll give you a good example.
I used to work for a company that sold exclusivly to resellers, granted this was back in the day and everyone was happy with 1GB resellers. Anyway we sold to this one fellow, who with his 1GB account preceded to offer 50GB Storage sites. I always hate to see people that fall so easily for these kind of stunts, because that's exactly what they are. Now in some cases they are legitimate, but it still makes it hard to compete. You have people like myself and other in this thread that have gone the extra mile to purchase 10/100 mbit unmetered connections, good server software being out done by "Crazy Larry's Cosmically Large Consortium of webhosting offering 50 GB Storage and 500 GB bandwidth for 2.99 (before the 50% off coupon of course). It's just not right. But we have to consider everything competition, we can do as many public service announcements as we want to keep people away from those kinds of hosts, and it will all be seen as a gymick. |
I couldn't agree more!
Jordan DeAngelis
If you ask me, people who are newer to hosting will most likely go with the cheapest price they can get for the amount of resources... While experienced webmasters will know the info they need to choose a webhost not based on prices... also they will know that many "too good to be true" hosts are exactly that as they eventually get ran down from too little profit.
In my company, we try to even between the two although we do kind of lean more to the new comers side... but it all depends what type of people you want to serve... Of course dealing with all experienced webmasters would probably be a bit easier...
In my company, we try to even between the two although we do kind of lean more to the new comers side... but it all depends what type of people you want to serve... Of course dealing with all experienced webmasters would probably be a bit easier...
ACENET--Jason
It all depends on the customer you are trying to get. Some customers want a low price and tons of features, while that will drive away others leery of poor quality.
speedyone
You always get what you pay for. One should make sure that they have put enough price in their packages to have enough to pay for proper support, servers, billing systems, and still make a sizable profit per customer.
James L
Quote:
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Originally Posted by jayweb
Hi all
I'm wondering. For a small web host, does offering large, feature packed hosting at extremely low prices actually put customers off rather than attracting them. We see the large hosting companies offering hosting at very low prices now. is it worth trying to compete? i am in a postion to offer hosting at a very low price and I am doing so at the moment. We also offer great technical support etc... BUT, we are by no means a houshold name and i worry that by offering hosting packages at such low prices, i could actually be instilling a degree of suspision into my potential customers. Although i will probably never be able to compete with the big boys when it comes to volume of customers, i would like to compete in price and i actually have the ability to do so. My dilema is that we are a web design company and are new to the hosting game. We have always provided hosting for our design clients but until now have not offered it to the general public. Developed our technical support skills and offer a great servce, but how does a small company make people have confidence in the service they are buying? I could put my prices up in an attempt to make people beleive that they are going to get a great service, but when i know that we are able to offer a great service and keep the price down, such a move seems a strange one to make. We are getting our fair share of new clients, but we are spending a fortune on PPC to do so. I'm not too sure how things will go when we slow the advertising down which we will need to do in a few weeks time. Do I keep the prices low, or do I put them up? i just don't know. Of course all of my existing customers will get the price they pay when they sign up, i wont put the price up on them, but do i increase the price in the future? |
It depends all on what kind of provider you aim to be.. lowering prices for the sake of simply getting more customers isn't necessarily going to do you any good in the long term.
I say review your business plan and try marketing to the right audience.
Hostnetric
James brings up a very valid point. Many hosts try to supply services to everyone, when quite honestly that is not a good idea. Find the niche that most interests you. I know a few very successful niche operators who do not a have a huge client list, but the clients they do have are businesses. They provide total website hosting with full management of these sites for their clients and make a very, very nice amount of money doing so. If you plan on competing with the BlueHosts, HostGators and others that are in the large volume low end market then you might become very dissappointed. You have to be prepared for low Returns on your investment and know that it may take quite some time to build up to the economies of scale that makes such a venture profitable.
Good Luck!
Good Luck!
etechsupport
Yea, I agree with James it depends on what type of customers you are targeting, it can be also observed in our walk of life, if some one offers something relatively in very lowest rate we turn suspicious. 
Jeff - Exceed
It entirely depends on your target market, there is however a limit where people will become suspicious as people are becoming wise these days. "Unlimited bandwidth" and space for $1 a month seems to ring alarm bells for most.
alanspacket
Cheap? does this include Cheap amount of space and bandwidth? But if you're overselling, don't expect it to last forever. Cheap, will this cheap price help your team to maintain the network and customer support? I don't think cheap is the word, maybe a little bit more on the side of: reasonable prices.