All the hosting companies are going from this bad phase. Customers ask for the cheap hosting by going through the offers made by other hosting companies. I don’t know how they provide so much at this much cheap rate. >From where will you earn? If you will not earn, how will you support? Support and service is must in this industry. And if you are not getting enough from your customer to employ a nice support team, it is the bad deal for the customer.
At once, you will get good deal but what if you face some problem? A long waiting queue for getting answers for your queries? Is it a good deal? Ask yourself or think yourself, in this competitive world, do you think a company can charge hi-fi amount and get a huge profit?? No it’s not possible. I have marked one thing, the company which is old enough, have not reduced their rates. They are still carrying on with their own rates and yes, not to forget with good service and support.
I still can’t understand why people want to compete on the basis of pricing? What will you get? Just increasing number of sites!! But will that be sufficient for your future existence? No, I don’t think so. You should never go for price competition. Try to beat your competitors by introducing new features and value addition services.
We always try to convince our customers about not to go for cheap hosting. Loyal customers, listen but others go away only to come back. We have very few customers who have gone away from us but not returned back. However, we don’t have any update on their hosting status, but I am sure they would have shifted from those cheap hosting provider, If not to us, to someone else.
But be sure, if you are charging extra – give extra. I am in the side of providing lots of add-ons or value added services to the customers. And yes, again, keep your attention on your loyal customers. They will pay you off for each and every efforts made by you.