How do you make price structure?

[bannersworld]

Hi All,

How do you people make pricing structure?

Expenses
Paymnet for employee
Rent
Internet
Server
.......

How many percentage you look for profit?

[Tris]

Well, I did a lot of thinking about the pricing. First i did some research on the pricing of other companies. And then I made an excel program to estimate what price i should sell at to give exactly the same profit no matter what is used on the server.

The first aim is to cover our costs which is done usually within 1/2 - 3/4 of the server space and bandwidth. Then we make some profit on the last 1/4. We can make up to $400 on each server, but the average at the moment is about $120 on each server.

I do know companies who sell until their servers are totally full so they can make a lot more profit, but personally I leave a lot of space free for backups and other things incase they are needed

[flumps]

well first thing you should think about is how many people are you going to have placed on 1 server. overselling is not a good idea because you need to think about if a user goes over there limits, server load and other issues.

you then need to think about covering the monthly or yearly cost.

you then need to think about paying staff or how much you are going to make for yourself or other people.

How we did ours was looked at other peoples pricing but noticed alot of hosts that charged silly prices "$1 for 5gb bandwidth 100mb space" not going to mention any names, so we gave up doing that beacsue most of other peoples prices where totally silly so we thought about making a program to create our own pricing, and thats how we come up with it :d but good luck with it, at the end of it its up to you how much you charge.