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Old December 27th, 2005, 6:51 PM   #1 (permalink)
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Question Confused by the pricing

Hey, I might be going crazy, but it seems like the bigger resellerplan you want the more you pay per gb space/bandwidth.. this can't be right, right? It's a bit late so I could be calculating this in all the wrong ways, but if I compare the bronze and the silver package I get this:

bronze is $170 a year = $14,17 a month.

space is 7gb / $14,17 = $2.02 per gb
bandwidth is 75gb / $14317 = $0.19 per gb

silver is $275 a year = $22.92 a month.

space is 10gb / $22.92 = 2.29 per gb
bandwidth is 100gb / $22.92 = $0.23 per month

I know this isn't the right way to calculate the price, but it's just for comparison.

So, is it just me or does the price increase instead of get less (like with the hostingplans)? This just doesn't make sense to me. I'm seriously concidering to move to surpasshosting, but if I have to pay more and more once i expand then I'm not sure if it's such a good idea.

Your thoughts?
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Old December 27th, 2005, 7:04 PM   #2 (permalink)
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From what was said in a previous thread that asked basically the the same thing, the reason a person would buy a bigger plan like that is due to convenience. You could always get another plan of the same type and have two, but no matter what if your site demands more space or bandwith than your plan allows, you'll obviously end up paying more (I don't know anywhere that gives you a bigger plan and decreases your bill).
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Old December 27th, 2005, 7:11 PM   #3 (permalink)
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Of course you will have to pay more. That's not the question. It's the price per gb that I'm talking about. Usually the price per gb will be less if you get a bigger package. I can even understand if the price stays the same, but it's just weird that it becomes more. Cause indeed then it would be smarter to get the same package twice. I just don't understand why the normal hostingpackages do have prices that makes the price per gb less if you get a bigger package and the resellpackages makes the prices per gb higher. It just doesn't seem smart for commercial reasons, cause this way it's not interesting for anyone to buy a bigger package.
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Old December 27th, 2005, 7:18 PM   #4 (permalink)
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It banks on the fact that its much more work to maintain two accounts rather then one I think.

edit: But why does everyone think it should get cheaper as you go up. Surpass has the same cost per GB whether they use 10GB of a hard-drive or 100Gb.
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Old December 27th, 2005, 7:34 PM   #5 (permalink)
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Marketing! Folks might go with Bronze and only use 1 gig of the resources. However, if they go with Silver they have a need for at least 7 gig, otherwise they'd get Bronze.
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Old December 28th, 2005, 3:08 PM   #6 (permalink)
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I don't think they necessarily have to get cheaper, but I don't see the need for them to get more expensive either. You are right, their cost per gb stays the same, so why make it more expensive for the buyer? They're only making more money if someone gets a bigger package, so why make the pricing so that ppl will think twice before upgrading?

fwwebs5, you say it's marketing. You're right, it's really bad marketing.

But ok, it can be a choice. But why use different pricing strategies for regular hosting and reseller hosting? Cause the regular hosting packages do become cheaper per gb if you get a bigger package.

I just don't understand the reasoning behind it.
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Old December 28th, 2005, 3:17 PM   #7 (permalink)
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I've only seen this mentioned once before, so I don't think too many people think twice about it. It seems they either don't notice this (I never did) or don't mind it (I don't).

Keep in mind that while you are buying more space and bandwith, you are also using more resources on the server. The bigger the account, the less accounts can be put on a server. This results in more servers being put up, which of course is not a low cost for them (man hours, equipment, etc). This could just be a way to recoup that cost, with prices differing by less than a dime.
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Old December 28th, 2005, 7:17 PM   #8 (permalink)
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Quote:
But ok, it can be a choice. But why use different pricing strategies for regular hosting and reseller hosting? Cause the regular hosting packages do become cheaper per gb if you get a bigger package.
So do the reseller packages, but the Bronze package is more of an introductory offer or the special of the day. Haven't you seen the 44 oz soda for $.80 and the 32 oz for $1?
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Old December 28th, 2005, 7:24 PM   #9 (permalink)
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Quote:
Originally Posted by D4Tessa
I don't think they necessarily have to get cheaper, but I don't see the need for them to get more expensive either. You are right, their cost per gb stays the same, so why make it more expensive for the buyer?
David made a good point about server resources, but don't forget as the cost amount gets higher so do the processing fees, so Surpass pays a higher fee then they would on the lower costing account.
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