Shared Hosting Price Suggestions?

Collabora said:
Any one can see its not a response to your post. Get off my back
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Really? I must be mistaken, you didn't post this then?

Collabora said:
Looks like Posilan went to the same school as easyhost and failed the class on quoting. Here is the rest of the quote posilan does not want you to see
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Are you always this aggressive? It's not a professional impression to portray in a public forum when you are representing your company.

Steve
 
I have another idea, but thanks to the post derailers I will also need to repost my previous advice. They seem to enjoy burying them with personal attacks and misquoted attributions. A review of bunnykins post is also useful

Hopefully I can give you this new advice without being accused of telling everyone what to do. So try this:

Collect a list of the price leaders (e.g. hostgator, godaddy, 1and1) and make a spreadsheet of their plan resources and prices. Compute some averages and other stats. Settle on some price points. Then check your costs. If they are out of whack with the prices you just came up with you can either change the price, change the costs, a combination of the two, or just don't offer that plan.

I believe with this and what I have posted earlier -- done so without knowing any cost -- can get you a good starting point. I now repost what I posted earlier to help inoculate me against those that say this should not be done and misquote me to score brownie points with the general public:

Collabora said:
Op doesn't have to post costs to get advice. Guide should be the market, not your costs. If your costs are not in line with market prices, do something about costs, not the price. If a host needs to charge 3x more than anyone else to cover costs and follows this advice, he will pay the highest price: failure. In some scenarios, operating at a loss is a better option.
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If the above isn't used against me as a claim that you don't need to know your costs, instead of we not knowing, I won't be surprised. Context switching by the peanut gallery here isn't new.

When you were told what to do by the person that accused me of telling everyone what to do, i.e., that you must use the same formula for multi-tiered limited plans as you so for unlimited plans, I offered this advice:

Collabora said:
Consider offering a single limited plan, but large enough so that the resources offered are much higher than what can be used by a personal or small biz web site in a shared hosting environment (per tos). Here you can offer what is effectively an "unlimited plan" while at the same time provide the limits required by some forums. For example offer a single 25 GB plan priced at your competition's 5 GB plan price or your original unlimited price -- operating under the assumption that virtually all sites will not go over 5gb anyway. (of course you may have to "oversell" to do that)

This will at least allow you to use the same formula.

Like you said, your calculations to predict PL will change with the multi-tiered approach since you will have a mix of products and pricing with an unknown percentage of each contributing to total sales. Information about these percentages by the others here, rather than insisting to know your costs, would be most helpful here.
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Also consider bunnykins concrete and similar advice from a consumer's prespecive: http://www.hostingdiscussion.com/we...red-hosting-price-suggestions.html#post168011

In short, view the landscape and then turn inward.
 
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I suggest you read what you post

Collabora said:
Compute some averages and other stats. Settle on some price points. Then check your costs. If they are out of whack with the prices you just came up with you can either change the price, change the costs, a combination of the two, or just don't offer that plan.
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and in earlier posts you state you dont need to know the costs, before any business works out what they charge then they MUST know what their full outgoings are

server costs
staff costs
rent/rates
insurance
utility bills
etc.

all need to be taken into account when working out your costs and then your profit margin, before applying to your plans.

This is all business administration and if you dont know this then you wont last long.


You might find a site offering

Plan C.
$5
Disk - 15 GB
Web - 300 GB

but this might be a 19yr old on a PC in his bedroom with no business insurance and hos parent paying all the bills

then you find

Plan C.
$12.50
Disk - 15 GB
Web - 300 GB

but this is a business running out of a rented office with 6 members of staff

so really you cant compare the 2
 
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Collabora said:
Hopefully I can give you this new advice without being accused of telling everyone what to do. So try this:

Collect a list of the price leaders (e.g. hostgator, godaddy, 1and1) and make a spreadsheet of their plan resources and prices. Compute some averages and other stats. Settle on some price points. Then check your costs. If they are out of whack with the prices you just came up with you can either change the price, change the costs, a combination of the two, or just don't offer that plan.
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Excellent advice....

Now if only I'd thought of that. :rolleyes2
 
easyhostmedia said:
I suggest you read what you post
and in earlier posts you state you dont need to know the costs, before any business works out what they charge then they MUST know what their full outgoings are
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When are you going to stop lying? It must be lying because I have made it clear since my original post (that has been reposted several times) that it is we who do not need to know the OPs costs in order to give advice, not that OP does not need to know his own costs.

I even predicted your exact response in my previous post!

Collabora said:
I now repost what I posted earlier to help inoculate me against those that say this should not be done and misquote me to score brownie points with the general public...
If the above isn't used against me as a claim that you don't need to know your costs, instead of we not knowing, I won't be surprised. Context switching by the peanut gallery here isn't new
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The gentle reader can verify my statements by clicking on the arrow next to my quoted username.

Because you continue to repeat the same attack over and over again after I repost the source of your information (my own posts!) showing you that you are factually wrong, I can only conclude that you are in the process of launching a smear campaign. If you think I have been "aggressive" now, keep it up and I'll show you "aggressive."
 
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What's up with everyone here debating everything? Haha.

This truly wasn't intended to be a gigantic technical debate about profitability. So, let me try to start this again. :)

What prices do you believe are fair? What would you personally be willing to pay for those hosting plans? The average rate you'd expect for them to be priced at.



Also, just to throw it out there, I am not a reseller, nor am I a 19 year old who gets his mother to pay the bills. :P (my mother is super amazing though, but she has her own job and expenses to manage)
 
Listen to your mother! ;)

Without knowing your costs that's about all the help I can give without being misquoted for the purposes of being skewered :dknow:
 
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Gentlemen (you know who you are), if you cannot respect each other's opinions, then a community environment will be a difficult one for you to handle.

In the words of the legendary Ron Burgundy, why don't you just "agree to disagree." ;)

PS: I do appreciate the passion, though. Shows how much you care. I just prefer that members always stay above little arguments.


Collabora said:
Listen to your mother!
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Finally, we are getting some real advice. :thumbup:


NOW, BACK ON TOPIC.
 
I'd be more concerned about your overall conversion rate vs. how much traffic you actually get from forum advertisements. If you really see forum advertising as a viable sales source, I say you should definitely consider it. Otherwise I know from our experience that unlimited hosting is a lot more attractive to our other sale sources (SEO, PPC, affiliate, CPM etc).
 
BradatA2Hosting said:
I'd be more concerned about your overall conversion rate vs. how much traffic you actually get from forum advertisements. If you really see forum advertising as a viable sales source, I say you should definitely consider it. Otherwise I know from our experience that unlimited hosting is a lot more attractive to our other sale sources (SEO, PPC, affiliate, CPM etc).
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Funny, I came here to add something similar. I've contemplated the same thing as OP is past, but decided I wasn't going to let a forum's rules determine my hosting model.

I am not confident that paid advertising of limited plans in a forum will generate additional revenue to compensate for the increased cost of sales. You will need to sell a lot more plans to catch up with the sales of unlimited plans and then surpass that.

It would be an interesting marketing test. But I would recommend a split test by creating another company with the limited plans and compare results with unlimited plan company
 
The price would really depend on more than the space and bandwidth offered. I would package the the offerings with other options such as different builders, SSL certificates or a billing manager software. Honestly, with just space and bandwidth you can unlimited space and bandwidth for less $7/month.

Good Luck!
 
Collabora said:
Funny, I came here to add something similar. I've contemplated the same thing as OP is past, but decided I wasn't going to let a forum's rules determine my hosting model.

I am not confident that paid advertising of limited plans in a forum will generate additional revenue to compensate for the increased cost of sales. You will need to sell a lot more plans to catch up with the sales of unlimited plans and then surpass that.

It would be an interesting marketing test. But I would recommend a split test by creating another company with the limited plans and compare results with unlimited plan company
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I just see it as an opportunity to push our VPS plans!
 
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