I am new to the hosting biz and i have recently reduced the space clients get as people said it looked like i was overselling.

These are my new specs & prices:

Basic
Space: 1,000MB
Bandwidth: 10GB
$3.00 a Month!


Standard
Space: 3,000MB
Bandwidth: 30GB
$5.00 a Month!


Advanced
Space: 5,000MB
Bandwidth: 50GB
$10.00 a Month!

What do you think?

You know the answer to that question better than anyone else. You no the cost of your server or reseller and how much space and bandwidth you have, you do the math.
That said, I think your plans look reasonable.

Well i can pay for it and from my costs its not overselling but some people might think that it is but i think that most people think its fine

What is your definition of "overselling"?

Your question is like asking how long is a piece of string.
No one can answer it without knowing what your exact situation is.

Well it wasn't really a question of if i can afford running at those prices for the space, it was a matter of would people consider the thought that i was overselling.

How about you lot tell me what your prices are and for what they get so i can compare

With all due respect, what are you comparing?

You have a business plan, do you not? Does this business plan not determine what you can charge for your services at this time and make a reasonable profit?

Determining your prices or your services soley based on what others are doing is not a good recipe for success.

I see what you mean

If I saw those prices, I'd think you were overselling. Then again, to a person who looks at costs, they wouldn't really care.

I'm not advocating overselling nor unreasonable overselling, but who cares if you are overselling or not, as long as you can maintain reasonable levels of service quality?

As you can already see, there's no defined point when your prices say that you're not overselling. Opinions will always vary on this subject.

Not to mention that there are hosts overselling drastically, yet have survived and even thrived for years (some despite having appalling reputations as well, but that's another story).