A competitive market is one of the primary features of capitalism. If you can’t offer better services/prices than your competitors, you will go out of business. If you want to make money and sell for higher, then your service needs to be better than your cheaper competitors, and you need to be able to show that to potential customers.Hi everyone, I am the brand owner of peach hosting (an RX Group LLC brand), you probably know us for our cheap price, and with all the $1/GB host around I was thinking of something.
We are creating a problem ourselves, and that problem is these awfully cheap prices, obviously clients love cheap prices, As an example, we offered budget hosted at $0.50/GB and premium at $1.25/GB the premium was twice as fast as budget, the difference in sells was 50 to 1 in favor of budget.
And you see, this isn't good for this community, at these budgets host, we are all barely breaking even just to provide the community with affordable services, but does it need to be that dirt cheap to where we barely break even?
I don't think so, I believe if every one of us hosting providers in the community keep lowering prices (price matching etc) we will simply kill the community, and it is kinda creating a society where everyone expects these awfully cheap prices, honestly $1/GB and below, is way actually way to cheap, and something somewhere, is making it that cheap, whether it be bad specs, or over allocation, either way, it's not good.
I think we need to change the community mindset, so we don't kill this community because right now we are killing it at this current state, we are.
How can we fix this? should we all raise our prices, to try and stop the community from getting saturated by all the $1/gb host?
If you have any better ideas, please comment.
I wan't everyones opinion on this, because us budget host can't deny this is an issue.
What you're talking about (companies agreeing to raise their prices) is called price fixing and is illegal in the US under antitrust laws.
Maybe you can benchmark your competitors, I'm sure it's not too hard to make a plugin that checks CPU speeds, I/O speeds, and bandwidth. Use that data to show you're better than the rest and an extra $0.75 a month is worth it.
Also part of the problem is 13 year olds who think spending $0.50 per month on a server is a good idea. You get what you pay for. I used to pay $10 a year for a VPS, for website and development needs, but there were so many problems I finally realized it's better just to spend the extra few bucks a month to buy from a better company offering higher quality services, since it's not like I can't afford it. Anyone who's serious about the quality of their server will understand that eventually.
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