Web Hosting Resource Kit – Editor’s Opinion 13/2004
A report about cell phone usage and minutes caught my attention today. The article mentioned that 78% of cell phone users do not use the minutes they purchase every month. In fact – costs for cell phone plans have been very stable in the last few years. Prices are just not going down because the cell phone service providers realized that they would not be making any money if prices go further down. And this is the thing that really caught my attention.
Look at the web hosting industry. Prices are dropping to always new lows and features and allowances are ballooning. It almost feels like that it will take just a few more months before the clients get offered money on a monthly base if they move their web hosting to a different company. It’s actually the complete opposite of what the cell phone industry exercises. The cell phone industry has been smart enough that almost all providers keep the prices on the same level and just add new features or additional minutes. They also do the overselling thing – just with minutes. I am sure that if every customer would use every single minutes they bought that the cell phone service networks would go down to their knees.
Anyway – if web hosts would be as ‘smart’ (no offense) and organized as the cell phone service providers, the industry would be much more profitable for everyone. Of course you cannot compare just a handful of providers with thousands of web hosting businesses, but a little push in the right direction would open up many more profitable opportunities for every web hosting business out there.
Think about it. If the lowest available hosting plan would start at around $9.95 accross the board – you would see many smiling faces out there. Your work and service would actually receive a fair price and the base income level for every one would increase dramatically. Would that not be great?! The sad truth is – this will never happen. Unrealistic pricing requests by customers always seem to find a web host matching the request or even go and offer lower pricing.
So, what do you think about this? Why not discuss this in our forum. Feel free to start a discussion.
Until next time.