Originally Posted by Steve-Hostirian
A lot of people posting on web hosting forums would lead you to believe this is a saturated industry. While there is competition, the industry is far from saturated. Sustaining pricing levels is about delivering a perception of value
. If you underprice your services, you'll have a much harder time sustaining operations - overprice them and you won't sell as many. And what works for one provider may not work for you. I wouldn't leave any stones unturned - do the forum advertising, article writing, blogs, craigslist, ebay - then figure out what works for you and do it over and over and over until it stops working. Good margins are there for reselling - good luck.
Well the way I work on and do think works is, starting low priced, fairly cheap.
Then once you have your first big or medium base of Clients, raise the prices but only to new customers.
This is a good method, once you pass the first year, ensure when you have the reputation, capital and the reviews to say how good your service is, it is time to charge more.
If people say you are good, and your service is good, why not charge more for that amaing service?
People who pay cheap don't stay long, and will be always wanting discounts.
The people who pay more are the ones worth the time and effort, they back you up, stay a while, always pay on time and don't play games.
I must get out to you, do not start at the profit margin of 100%, you may find it very hard to build the base and get the reviews, I started out intending to loose money on some new things I did, then I put the pricing up once I knew my service was good, and had reviews to say so.
In the long run, pricing goes up, just keep working at it, but don't listen to people who say be cheap, forget that, there is money to be made in the industry, and it is down to hard work to get it.