ResellerDedicated opening soon, what do you think of our services?

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ValidB-SG

New member
Hello HostingDiscussion Members,

ResellerDedicated will be launching Monday 12' December 05 and we would like to know what YOU think!

We will be offering reseller packages and dedicated servers only, nothing else, we want to focus and provide expert support on what we sell.

Firstly, in regards to our Reseller Packages, we will have 2. Also i would like to point out that we do not oversell, and allow 9 resellers max per server.

Reseller#1
5GB Disk Space & 100GB BW - cPanel WHM
$14.95 Monthly
Reseller#2
10GB Disk Space & 250GB BW - cPanel WHM
$24.99 Monthly

--

In regards to our Dedicated Servers, i will list the one i feel will be most popular below, tell me what you think.

Intel Celeron 2.4Ghz Processor
512MB RAM
80GB Hard Drive
2000GB Bandwidth per month
FREE! cPanel with WHM
FREE! 3 IPs
FREE SETUP!

-$10 from the price below if you pick DirectAdmin as your control panel.

$95 per month
(month to month contract)

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All services will be on the NTT/Verio network, regarded as one of the most popular networks in the world. We have agreements with a company who has racks inside the datacentre, they are also onsite.

We will offer true 24 hour support, based from our UK office, not outsourced. You will even be able to see how we are doing on the Office Webcam page.

We hope our services will be popular, and hope customers enjoy them as much as we have making them.

As i said, we want to know your thoughts, however small... or big, in regards to our new company launching on Monday.

Thanks!
 
ValidB-SG said:
Also i would like to point out that we do not oversell, and allow 9 resellers max per server.

Reseller#1
5GB Disk Space & 100GB BW - cPanel WHM
$14.95 Monthly
Reseller#2
10GB Disk Space & 250GB BW - cPanel WHM
$24.99 Monthly
Click to expand...
I can't see how your model can be very profitable. Taking nine of your Reseller Plan 2 gives you an income of $224.91/month per server. I can't see how this can be made profitable after factoring in server costs and other business expenses. Your margins must be fairly low?

- Chris
 
Last edited:
Hi Rochen,

Actually no, our server agreement was based upon bulk ordering, this allows us access to reduced price servers.

We have worked out all the financial aspects and i would not agree with the "margins must be fairly low" statement. We would not offer services we can not support.

Thanks.
 
ValidB-SG said:
I would not agree with the "margins must be fairly low" statement. We would not offer services we can not support.
Click to expand...
You certainly can price packages the way you think is most appropriate for your marketing mix, however, Chris, and myself, compare your pricing model to pricing by industry's leading companies. The result is that you seem to have chosen pricing penetration strategy, which will seem to produce lower margins for value-added services like supporting your customers.

ServInt sells 200GB bandwidth for $50/mo.
You sell 250 GB for $25/mo.

What are your margins (percentage wise) that you have left for support services, extra expenses, your personal income, insurance perhaps, etc?

Best,
Artashes
 
Hi,

It is hard to explain the financial side, considering many people on this forum actually own hosts, me telling everyone how we work, what agreements we have with datacentres, software providers and so on will not benefit us, however we have invested a lot of money in getting the business started, we also have the financial backbone to do this.

In regards to the servers, we actually make over 60% profit per server when it comes down to our reseller pricing.

Currently (from Monday) we will employ 1 sales and 2 support staff, excluding me within the UK (all working full time) and 1 sales/support agent within the USA. This will allow us true 24 hour support.

Also in regards to low profit margins as you said above, let me point out that the profit margins may be slightly below others, however not by much. We will not cut back on quality when it comes down to support/services and so on.

Take midPhase for example, $7.95 gets you 5gb space and unmetered bandwidth. Thats not very different from us, sure they are not reseller plans, but compare that to our $14.95 5gb / 100gb b/w plan.

We find many hosts actually charge more just because "its a reseller account", i dont see the point in this considering you would still be offering the same space and b/w.
 
Stephen, since it seems like you know what you are doing, the prices, to answer your question, are very attractive. I am sure you'll be able to get your share of market with the setup you have now.

Best,
 
Stephan,
Firstly congratulations on your launch :)
All I have to say related to your prices is looks like people have some good competition ;)
 
This might be more appropriate in the website review forum, but when I click on "Contact", the site gives me an error.

Congrats on the launch though!
 
Stephen,

Congrads!! The site looks great. Like some others said in time you will realize that your prices could be higher and you could be making a larger amount of profit. As for 24/7 tech support 3 people seems to be small for 7 days a week. Just my thoughts good luck in the upcomming months.
 
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