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Thread: Price Wars
02-20-2003, 11:36 AM #1mediopiaGuest
Please expand on the above issue.
I find it very amusing that every day web hosts are engaging in severe price wars and have lowered their prices to an extent that do not come at par with a sustainable business model. As a result many of them either go out of business very quickly or spread resentment among their customers, by providing poor services.
How could a host expect to provide satisfactory services to its clients, when it is charging $2 - $5 for Gigabits of space? For a big company with lots of capital and client base it might be possible to lower the prices to this level with sustainable profits, because they have economies of scale, however for Tom and Harry, or even medium-sized hosts it is impossible!
Comment Please .... !
02-20-2003, 04:06 PM #2northwindGuest
this is true.
The thing is, most comsumers don't even compare the prices when it is in their price range.
They would rather prefer quality over price.
02-22-2003, 11:14 PM #3eHostSpaceGuest
basically, in a price war, consumers stand to gain alot but the companies sufer the most. With so many companies to choose from, consumers also face difficulties in selecting company to buy from.