Thread: Starting a Web Hosting company at a small town.
Started 1 month, 3 weeks ago by Lucky Che
I live in a small town with only one web hosting provider around. Their prices, in my opinion, are ridiculous.
Quote:
$20/month
$25.00 set up charge
50MB disk space, extra space $.35 per MB
1GB transfers, extra transfers $1.50 per 100 MB
1 POP E-mail Account
cgi-bin and PHP enabled
Monthly web traffic reports
$35/month
$30.00 set up charge
...
@Lucky Che
I would definitely open a web hosting company if I were in your place to compete against the local provider, however I wouldn't have my prices ridiculously low, when you do this the market that is currently existent there will be killed. Have your prices slightly lower so there is still some competition, eventually when your competitor looks at this they may reduce their price and ...
@ antony_m
Thanks for the pricing feedback! It really helps
I was planning on maybe offering web hosting for $5.00 less the price and slightly more resources?
Jixhost, Innohosting and HostGator are my top choices as of the moment. I have known from experience that local clientele would contact for support during business hours, as is the case with my school. I can handle odd ...
You would be in safe hands with Host Gator because if you do not have the technical expertise, they will be more than willing to lend you a hand
PS:- 5 USD is a great starter plan. Wish you all the best
Quote:
Originally Posted by Lucky Che
My plan was to approach the local business personally via e-mail or over a cup of tea (people in our town conduct business this way). Would that be a good idea to get some starting customers?
As far as local business is concerned seems not a bad idea . Hope it will work fine...
Quote:
If you were in my shoes, would you open a webhosting company to compete against the monopolizing local provider?
It depends a lot on how big that market is in the area. You may be able to fight the price way, but his prices may be what they are for reasons other than being the only provider there. If there are 200 customers there at most, ...
My town is a tourist hub. A lot of businesses catering to the tourists pop up every month.
One thing I can do is design & code websites ([x]HTML, CSS, PHP, jS). I know that the competition cannot design websites or understand basic HTML for that matter. Bu this MAY also mean losing my affiliation with the designer (see 1st post).
Quote:
Originally Posted by Lucky Che
So my major questions are:
If you were in my shoes, would you open a webhosting company to compete against the monopolizing local provider?
If so, who would your reseller provider be?
And would you offer domain reselling?
Looks like you found a fortune.
I would grab the...
Geez, this thread makes me want to move to a small town. (Dere's gold in dem dere hills!!!)
You should definitely start up a competing hosting site. Don't make your plans too cheap - local business is always prepared to pay much more than the ridiculous online pricing. So for instance, offer a Starter Plan for $14.95 a month and offer 1 MB of disk space and 10 MB of monthly transfer. Local ...
Thanks for the feedback everyone! In the end, I'm sticking with my primary choice: JIXHost. I'll set up my prices as $14.99, $19.99 and $24.99. It may still change, though!
Quote: Originally Posted by Lucky Che Thanks for the feedback everyone! In the end, I'm sticking with my primary choice: JIXHost. You are welcome. Best of luck with your new host. Give us a review after a couple of months.
There is no such thing like unlimited, there is a limit somewhere. There are people looking for cheap unlimited every thing but there are also people looking for quality, if there are big names providing unlimited everything there are more dependable names providing better quality services. There is market for every one, what matters is how you want to play.
@Lucky Che I would definitely open a web hosting company if I were in your place to compete against the local provider, however I wouldn't have my prices ridiculously low, when you do this the market that is currently existent there will be killed. Have your prices slightly lower so there is still some competition, eventually when your competitor looks at this they may reduce their price and this way you still have some room for margin....
You would be in safe hands with Host Gator because if you do not have the technical expertise, they will be more than willing to lend you a hand PS:- 5 USD is a great starter plan. Wish you all the best
Quote: If you were in my shoes, would you open a webhosting company to compete against the monopolizing local provider? It depends a lot on how big that market is in the area. You may be able to fight the price way, but his prices may be what they are for reasons other than being the only provider there. If there are 200 customers there at most, with few prospects that the market will be getting larger anytime soon, his $20-30 pricing makes...
Quote: Originally Posted by Lucky Che So my major questions are: If you were in my shoes, would you open a webhosting company to compete against the monopolizing local provider? If so, who would your reseller provider be? And would you offer domain reselling? Looks like you found a fortune. I would grab the opportunity and start the business asap. You shold get a domain reseller account on Directi platform which allows you to create website...
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