Web Hosting Costs

Normally client don't like price increase, but if you plan to lower the price, because the server cost is much lower, it is depend on what you have in your business plan.
 
If that extra benefit costs a very littel portion and the client becomes happy to pay increased price then I see it's a good idea.

but increasing the price to cover an extra benefit is not increasing the price, you have just upsold extra to the client, so you are in then same boat as before.

Like all businesses you can legally increase prices when your own costs go up as if you dont then you will soon go out of business as your costs will soon become more than your income.

The trick is

1) How much increase do you need to apply.
2) Inform all clients at least 14 days before you plan any increase

in some case it is not a case of increase prices, but to actually alter plans.

lets say you have a this plan

80 GB space
100GB bandwidth

£15 a mth

amend it to

60 GB space
80GB bandwidth

£15 a mth

so the client is paying the same, but getting less resources, but again give at least 14 days notice to clients before such changes.

if clients then get back to you to say they need all them resources then explain to them it either reduced resources or a £2 increase and i bet most would be happy to pay then £2 increase
 
What I'm working on next is Websites for $9.95, not per month, per year. Now you can call me cRaZy, but I already have a way of making it work. And I assure you, I am NOT insane. Yes, I had myself tested. :)

How confident are you in scaling this? As a one-man shop sure it might become some nice side revenue but once you hit a certain size what is your plans then? Hiring qualified techs and support agents sure does add up and for $10/year woo

If you also value your time, 1 support ticket per $10/year customer and you're instantly not profitable for that customer probably for the entire year or two.

Good luck :).

A2 is nearly 200 employees strong, the $10/m range is our most entry level pricing once out of the discount code.
 
How confident are you in scaling this? As a one-man shop sure it might become some nice side revenue but once you hit a certain size what is your plans then? Hiring qualified techs and support agents sure does add up and for $10/year woo

If you also value your time, 1 support ticket per $10/year customer and you're instantly not profitable for that customer probably for the entire year or two.

Good luck :).

A2 is nearly 200 employees strong, the $10/m range is our most entry level pricing once out of the discount code.

I was a one man band and the lowest plan i could do was £3 a mth ($3.82 approx.) by the time you include server costs, software (softaculous etc.), security, your wage it was not worth offering anything lower
 
hello

Change in prices depends on the third party license cost as if it is changing so we have to change the cost also it depends on the your cost. If our customer is very reliable and giving us more business then we can continue with the same prices.
 
A few years ago I had bought a web hosting customer base which was offering crazy low prices - and almost zero-sum profit, however it looked like a faithful customer base. Raised prices and lost 70-80% within a 2 years.
Yes, you have to raise prices, but you also need to understand your customer base. Why do they choose you? Are they strictly price conscious? How long has the price been the same?
At that time I had mis-read the client base.
Make sure you know yours.

Correct. And I do understand that. I reach a particular niche mostly that wants my services because of the standards I hold to. So I have learned to never disturb that and have had clients 10+ years.
 
How confident are you in scaling this? As a one-man shop sure it might become some nice side revenue but once you hit a certain size what is your plans then? Hiring qualified techs and support agents sure does add up and for $10/year woo

If you also value your time, 1 support ticket per $10/year customer and you're instantly not profitable for that customer probably for the entire year or two.

Good luck :).

A2 is nearly 200 employees strong, the $10/m range is our most entry level pricing once out of the discount code.

After getting enough clients I would make changes that would throttle gaining more clients than I can handle personally. There are a lot of ways this can be done. One way is offering the first 100 clients or whatever number you want, this special low price. There are other ways as well.
 
Since firing cPanel and setting up new servers with Plesk and CWP I have been able to drastically reduce my hosting prices.
 
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Resellership

Should a web host raise their customer prices after a long period of time? Or is it better not to raise prices? I have had one customer for 10 years now who still pays the same thing.

We believe in not hampering the customers pockets and provide the services at best possible , affordable prices. have you taught of having a reseller account with just shard account service.:smash::smash:
 
We believe in not hampering the customers pockets and provide the services at best possible , affordable prices. have you taught of having a reseller account with just shard account service.:smash::smash:

but like any business, if your overheads increase then you have to increase your prices.

Are you paying the same price for a pint in the pub that you were paying 10 years ago
 
Should a web host raise their customer prices after a long period of time? Or is it better not to raise prices? I have had one customer for 10 years now who still pays the same thing.

but like any business, if your overheads increase then you have to increase your prices.

Are you paying the same price for a pint in the pub that you were paying 10 years ago
 
they should keep their prices stable so that the customer is happy and should not leave form the company and the existing customer would get more customer for hosting because the price is cheap
 
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