Absurb Price Laws Among Web Hosting Companies
Sunday, October 22nd, 2006A very weird happening is the influx of a huge number of web hosting companies, some run by kids who are not even 13 years old. Some provide web and email space in gigabytes or unlimited everything for the price of less than a cup of coffee per day.
Even some of the established companies that we knew jumped into the price war and burning themselves in the process. For us, we hold still. We have calculated our profits and costs. We hold still to the prices that can sustain and grow our company rather than take a myopic view and slash prices knowing full well that this cannot be sustained.
Till now, we believe we are right, as we continue to attact clients, in fact much better paying and corporate clients. It seems that they come to us because we price our services reasonably and not at the rock bottom.
For those that are price sensitive we simply have to let go. If we do price at that level, long term survival of company is in question and normally at such price levels we find more problematic clients. It seems that the price is directly proportional to the quality of your clients.