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Why Me Making More Money Is Better For You, My Client

October 24, 2007 by Brendon Sinclair Leave a Comment

We host quite a number of client web sites.

How hosting works is that we buy a big chunk of hosting from a hosting company and onsell the storage and bandwidth at more than we paid.

Our hosting prices have varied from $100 to $500 pa a site, based on a variety of factors.

What we’re about to do is have a flat price for all of our hosting clients, regardless (within reason of course) of the size of the web site. That price is $242 pa.

The reason we’re doing this is:

  • to make it fairer for all our clients
  • to be more profitable

Why Charging More Is Good For Our Client’s Business

You’d think that us being more profitable is bad for our clients.

But it’s not. It’s better for our clients.

Let me explain.

  • Our clients don’t buy hosting
  • The buy a solution
  • That solution is their web site up and running well and their emails working
  • As soon as those things don’t work then there are problems
  • And we get called

Charge Too Little – Can’t Afford To Provide More Staff

If we charge too little then we’re not able to allocate the time and effort required to ensure a fast solution gets found. This is why budget-priced hosts very rarely answer the phone (or even have a phone number) and take days to respond to an email.

If at all.

If we ensure our hosting operation is profitable, then we can answer the calls from our clients and allocate the time to ensure the best solution.

Because remember, the client isn’t buying hosting, the client is buying a solution.

Cheers
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Filed Under: Business Management

About Brendon Sinclair

Brendon is the Founder and CEO of Tailored Media. He is one of those rare creatures who can not only tell you how to do it, he’s done it himself, with a vast array of experience across a broad range of areas from marketing public companies, national brands, large retail operations and much more.

He can be found on Twitter, Google+ and Facebook.

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