How should I pick a price?

PenguinManiac · Aug 16, 2017

The only rule of thumb there is when picking a price for any service is that profit has to be higher than expenses, as basic economics dictate. However, it's hard to find any other rules to live by past that. You have to keep an eye on competition and be wary not to exceed with the profit margin you're striving for: obviously, though, businesses are made to make money.

So, generally, what criteria do you base your prices on? Are they more or less the same as the average one among all hosting companies or do you comply with your own personal price policies?

vinaya · Aug 16, 2017

pricing your product or service is the most difficult aspect of selling products or services. The price you charge for your services and products should include everything you paid to develop and promote the product/service.
I am thinking to start with reseller hosting. I can get 25 reseller accounts for $16 a month from namecheap. If I want to sell hosting service, my price should include the amount I paid to get the reseller hosting as well as money I spent on promoting my reseller hosting.

JoeMilford · Aug 17, 2017

This is a very tough question--I am actually grappling with this right now while trying to figure out how to properly price the eBooks I want to sell. It's hard to find a good price margin which can make you a decent profit and cover your expenses without running off potential customers. I am grappling with how to better market my books so that they display their worth and value accurately to customers.

EzzyTech Networks · Aug 19, 2017

For picking up a fair price, market survey is the most important part. You have to choose your target customers & then you can select your pricing. How you judge your product quality is another question here. But to gave a decent price, you have to consider many factors at a time.

radwebhosting · Aug 19, 2017

If you are just beginning, try to find a way to live without profits initially, if you will be offering basic hosting services targeted at the masses. There are obviously tons of competitors in the industry and it is important to fill up your early servers quickly.

Not only does this establish a client base for your business, but also, it will provide a lot of valuable experiences, managing many different live websites on your infrastructure will introduce a wide variety of situations that you will deal with. These experiences are critical and highly-beneficial towards your growth as a service provider.

So, it is key to approach the initial pricing of your services with a long-term strategy in mind.

There are other types of hosted services, such as fully managed, white-glove teams which will provide end-to-end digital strategy management to a much smaller group of clients, but with this business model, you should be pricing each service on a case-by-case basis and provide custom required services for each client. In this hosted service model, I imagine you would attempt to make immediate high profit per client, as the method of acquisition and client lifecycle would be totally different than what I mentioned above.

Good luck with your new endeavors, by the way!

MooMooHost · Aug 24, 2017

Just set prices that would net you a profit, and to get people interested in your services first, give them some promotions as incentives, or even undersell a bit to get some client base !

manmad · Aug 26, 2017

Well, first of all, look at what type of service you are offering and how it differs from the others. Look at the best in your niche and focus on having lower prices than them, even if you don't bring much profit from the start, you can at least bring traffic, which is equally if not more important for a beginner.

How should I pick a price?

PenguinManiac

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vinaya

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JoeMilford

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EzzyTech Networks

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