Why are some web hosting plans so expensive?

spidy

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I think it's depend on brand. Once popular web hosting they charge more.
 

BuzzNoc

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the pay outs to the affis the payout for all the extra stuff the offer you. then top it off main companies like that serve good support. but idk them affiliated prices seem pretty good I'm about to offer the same crap xD
 

rankmyhub

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Hosting companies have different strategies and different marketing techniques to sell their web hosting plans. Some people are able to sell for high price as they wanted, because of the branding they have.

For example, some popular XYZ company can sell poor technical configuration for as high as $30 per month (shared hosting). Where as small providers struggle to sell $30 value product for $4 per month.

The logic is simple, people just see the popularity. No matter you have best hosting in the world for the lowest price, ultimately popularity wins in the end. To win this battle, you need to build your brand so strong that those who people who ask you 100 questions to buy from you, should buy instantly without any questions.

For that you need to plan properly and execute it. Quality services will work someday, no matter how big the competitor is, you will have your piece of cake.
 

WebHostingUK

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Im guessing its due to a few factors

1. Are you a reseller? If so then obviously the prices may be higher for the reseller to make a profit
2. Server location - I've noticed an example of server in the USA sometimes been half the price of servers in the UK, im guessing this is due to TAX/VAT added.
3. HDD or SSD? SSD is much faster and more reliable but you'll notice the price is more
4. Type of hardware - Cheaper servers don't offer as many resources to they be cheaper e.g an atom based server in comparison to a xeon server.
5. Upload and download speeds - Again ranging from 20MB to 1GB can have a bit impact if you have many users on the server.
 

shiyuchen

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As the hosting company progresses, it is inevitable that you'll have to increase the price to make sure that your machines and the service are updated. So, you can't really blame them as they are increasing the price to bring you better services.
 

alpshost1

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nice question indeed. but I will have a good example as well. It is like comparing iphone to android phones (prices wise). Different companies who produces smartphones and they have same function right? you can make calls, text, play games, install apps but they have different prices. In short, you are paying more not for the service but because of the brand.
 

LJSHost

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The more expensive plans are priced about right for a business to make a profit.

This industry has a terrible problem of customers thinking $2 a month is normal thanks to all the under cutters willing to sell at any price just to get a client then they let down all the clients when the business goes bankrupt due to unsustainable profits of the lack of.

Customers need to understand operating costs and even paying one junior tech support guy on the prices they charge is impossible.

Id say a lot of these super cheap hosts know it won't make a long term profit but they are just in the game for a quick pump and dump then start up the next brand.
 
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