If you are just using the space and bandwidth to make and sell web sites, rather than running web hosting business, then may be a VPS is good option. Not to mention the pricing besides managed support. If you go for a dedicated server from a reputed firm (by reputed i mean good DC, good hardware and resources besides name) then it isn't going to cost anywhere near what a VPS would cost. Dedicated always comes for higher price. If you are willing to compromise on quality, you may be able to find cheap dedicated servers or may be servers with DC which aren't much heard off or are rather new. VPS from a reputed firm which infact is experienced at making virtual servers, would be well priced but then you get what you pay for.

Downside of having a dedicated server if you are just making/selling web sites is that you need to manage the server yourself or hire some one to do so. In addition security and other hardware-software upgrades need to be done by you or your hired staff. This should keep you occupied when you must be making best use of time in making/selling web sites. VPS in such cases, is a better option since you get your alloted resources (unshared) and have to manage within those resources, but never bother about managing server or hardware-software upgradatino and security in most cases. These are in most cases, attended to by the VPS providing company.