Is is wise to up the price ?

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Posted by fweikeong, 10-14-2000, 12:33 AM
Hi all, Since the Ala has up their server price with an expanded harddisk, and start charging the CP after the 35th installation. I've seen some host starting to up the price on their plans, basically is to push the burden to the client. My Question is : Is it wise to up the price of the plans, or to maintain the plans at the current price and sell more, since Ala has given a larger harddisk, and should accomodate more clients in one server.
Posted by JTY, 10-14-2000, 01:02 AM
I would say to keep current customers at the price they are already paying and then increase the price for new sign ups.
Posted by Learner, 10-14-2000, 05:58 AM
That seems a wise thing to do for Alabanza's clients. You should also take into account the costs of your biggest competitors, I think, when you make such decisions. Learner [Edited by Learner on 10-14-2000 at 06:02 AM]
Posted by CRego3D, 10-14-2000, 11:14 AM
or you can allwats move over to Ultrapeed and instead of raising costs .. you give them more bandwith, HD space, etc etc and save yourself some $$$ ;-) PS - I'll be doing that next month [Edited by CRego3D on 10-14-2000 at 11:33 AM]
Posted by MSW, 10-14-2000, 02:22 PM
Yes, but is it all about price? You can charge 2.00 for an account and people will sign up, but when you can't give the customer support, it is not worth it. Beign with a larger organization, threre is overhead involved other than just the leased servers. You have administration prices, office space, technical support personnel, not to mention advertising. This can't be accomplished by charging only low costs. People are willing to pay a bit more for hosting when they can get their questions and needs answered in a very timely fashion. Trust me... we know!
Posted by CRego3D, 10-14-2000, 02:28 PM
humm .. what the heck was that all about ? we know ? Afcorse you can charge a buck for a 500MB account, I just don't get it why did you came here firing your guns at me, I provide an excellent service to my customer, and my point to fweikeong was that Alabanza is getting expensive, now your point ? I know your point, I just don't get the attitute... Ho and .. Alabanza and support quality no longuer go hand on hand ;-) cheers
Posted by MSW, 10-14-2000, 02:34 PM
Slow down mario.. That reply post wasn't to you. Unfortunately, you thought so because it was next in line from you. I was making a general comment. Not for you to take things personally. Again, my post had nothing to do with yours.. Peace
Posted by CRego3D, 10-14-2000, 02:47 PM
Alright then .. peace I was a little upset I tought it was a msg for me My mistaque .. cheers
Posted by UnitedTec, 10-14-2000, 04:02 PM
There is nothing wrong with increasing the price of your hosting service. I filled up my truck with gas today, and it was higher than when I filled it up yesterday. The company that supplies the gas to the station increased their price, and the station increased their price to me. You may want to consider leaving the price the same for the customers you already have, and just increase the price for future customers.
Posted by Jag, 10-15-2000, 12:56 AM
Having a larger hard disk should not be the factor to decide to increase clients on that server. Drive space is the cheapest part of any computer these days.
Posted by Google, 10-15-2000, 01:17 AM
Jerry!...Jerrry!...Jerry!
Posted by Jag, 10-15-2000, 01:22 AM
I dont get that one
Posted by Google, 10-15-2000, 01:24 AM
you know when there is a fight on jery springer and people start tearing someonce haird out and all the people go jerry!...jerry!...jerry!
Posted by Jag, 10-15-2000, 02:22 AM

Posted by CRego3D, 10-15-2000, 09:53 AM
Yeah .. Don't miss on the next Jerry Springer ... "My Host has a bigger HD than yours" ..
Posted by Google, 10-15-2000, 11:34 AM
they should actually do that
Posted by fweikeong, 10-20-2000, 02:56 AM
Thanks Guys for giving a thought on this subject. I have a few points to it as well :- What do most customers want from a hosting company ? ------------------------------------------------- 1. Low price 2. big storage, lots of features 3. tech support Majority of the hosting customers rank their requirements from a hosting provider like above. Price, features, storage is always the highest criteria for one to decide on a hosting service, the worries on tech support will normally come later when the have signed up a plan and started working on it. If the price or the features are not attractive enough, people may not even want to send enquiries to the hosting company seeking further info. Market Acceptance ----------------- As mentioned earlier, majority of the customers seek for lower price plans. Hence, the market may not be able to digest a higher pricing plans, hosting industry is a very competitive market, hosting companies are slashing the price for bigger stake of the market, higher price may not be attractive enough for new customers. Be competative is a key for survival, in the market where everyone is selling the same thing, what would make your stand out of the crowd and be noticed. Though, I don't agree on throwing away all your profit to be compatitive, that is killing yourself even faster, but at least be on the level with the market. Profitability -------------- Maintaining the old price for old customers and sell new price for new customers. The old customers does not matters here, the one that matters here is the new customers, are hey willing to pay that price ? what makes your old customers signed up your old plans ? Your old customers is your income generator, you company depends on them to keep things moving, if they are not handled carefully, and your new strategies failed to attract new income source, you may end up closing your business. Many of us here suggest on keeping the old customer happy as they are now, increase the price for the new customers. It is also a way to keep Which is the most sellable plan ? My guess is the lower price plan accounts for 50% of your customers base. You will need to have a plan to attract the new customers in and let them escalate up in time. Not many people has big budget for a startup website, especially when you are talking about recurring cost. My Opinion ----------- With Ala changes, my opinion is to maintain with whatever pricing that brings you customers, sell more of those plans. Probably should start thinking of a Plan B, experience has thought us not to depend on one sigle supplier too much, the larger you grow the more you depend on him. If he goes down, he will bring you along.
Posted by Learner, 10-20-2000, 06:19 AM
That was great "food for thought" !!!!!! nice post !!!!!! valid points you made here backed up with intelligent reasoning !!!!!! Learner
Posted by fweikeong, 10-21-2000, 01:29 AM
Thanks for the complement Learner, just some thoughts that cross my mind. We are all here to share, hope it really help somebody. [Edited by fweikeong on 10-21-2000 at 01:32 AM]

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