Reseller hosting prices

Aviva

New member
Hey guys,

How do I set my hosting prices and plans? Need some suggestions to improve my profit margin.
 

SynTax

New member
There are many criteria to determine this. You add up the server, hosting and license fees and divide the price by the number of customers. you add some profit margin to the result.

It can be done this way. this is an example.
 

SenseiSteve

HD Moderator
Staff member
Hey guys,

How do I set my hosting prices and plans? Need some suggestions to improve my profit margin.
Looks like you've already set up your hosting prices and plans. As a baseline, what criteria have you already used?
 

easyhostmedia

Well-known member
There are many criteria to determine this. You add up the server, hosting and license fees and divide the price by the number of customers. you add some profit margin to the result.

It can be done this way. this is an example.
I highlighted a flaw in your comment.
If you are setting up then you won't have customers to divide by, so yes

add up all your costs

1) servers/hosting
2) licence fees (WHMCS etc.)
3) module costs

they decide how many accounts you would like on the server

they divide all your costs by the amount of account you want on the server.

this will give you a break-even price, they decide how much provide you want ( say 30%), you then add 30% to the break-even price and this gives you the cost you would charge.

I have noticed on your page https://avivahost.com/contact-hosting-provider.php

'We are one of the first companies in the USA that offer fully automated web hosting solutions. '

have you got evidence to back this up
 

nonenon

New member
most of the providers 'oversell' just to have an edge over the others. you may want to use this marketing gimmick to attract new customers.
 

Smith_euk

New member
First, do research on your competitors plans before deciding on a pricing, since if you do not compare prices with other providers, no consumer will purchase a server from you.
 

SenseiSteve

HD Moderator
Staff member
First, do research on your competitors plans before deciding on a pricing, since if you do not compare prices with other providers, no consumer will purchase a server from you.
Of course, you should be aware of your competitor's pricing, but consumer's will still buy from you if your product or service eases their pain and fits their budget.
 

easyhostmedia

Well-known member
Of course, you should be aware of your competitor's pricing, but consumer's will still buy from you if your product or service eases their pain and fits their budget.
But still too many consumers will just look at the price. How many on here have had customers who will say ' I bought unlimited hosting from eBay and all my sites are down and I cant contact the host, can you help me get my sites back' and you find out they bought a $2 per year unlimited everything plan from someone on eBay who did not have their own website.
 

SenseiSteve

HD Moderator
Staff member
But still too many consumers will just look at the price. How many on here have had customers who will say ' I bought unlimited hosting from eBay and all my sites are down and I cant contact the host, can you help me get my sites back' and you find out they bought a $2 per year unlimited everything plan from someone on eBay who did not have their own website.
And on the other end of the spectrum, you have providers like Rackspace, with over 5000 employees who could care less what some eBay provider is offering. Why? General perception is they offer a premium service that minimizes their client's pain and their business model seems to be working quite well.
 

easyhostmedia

Well-known member
And on the other end of the spectrum, you have providers like Rackspace, with over 5000 employees who could care less what some eBay provider is offering. Why? General perception is they offer a premium service that minimizes their client's pain and their business model seems to be working quite well.
yes, but when people have less disposable income they think going to feebay (opps eBay) and paying $2 a year is great until things go wrong and host vanishes, so they will then goto rackspace etc. understanding that you need to pay for a good provider
 

SenseiSteve

HD Moderator
Staff member
yes, but when people have less disposable income they think going to feebay (opps eBay) and paying $2 a year is great until things go wrong and host vanishes, so they will then goto rackspace etc. understanding that you need to pay for a good provider
I get the point you're attempting to make, but I'm pretty sure prospects searching eBay for hosting are not going to Rackspace, rather somewhere in between. I think you missed my point in that you don't necessarily need to follow the trend for pricing (from your competitors) if you're offering a recognizable value-add product or service, or the perception of that. Pricing is absolutely a factor, but not always priority number one.
 

huncky

New member
Be sure to do some research on your competitors so you will have some insight into the price range. Distributing over- or under-priced products is up to you.
 

navyasri

New member
You may find that the best way to increase your profit margin is to focus on increasing your customer base. This will be easier if you provide high-quality customer support and respond promptly to customer inquiries. It’s also helpful to offer a variety of features and plans so that customers have a range of options. But even then, you can always look for ways to cut costs or reduce your operating costs to increase profits.
 
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