why is webhosting in USA so cheap?

Discussion in 'General Marketing' started by hungvn9, Oct 26, 2010.

  1. #1
    I have been searching hosting services in australia, singapore and many other countries but I find USA is only place provide cheapest hosting services, about 5-10 times cheaper than others. How can USA companies can provide such a cheap services?
     
    hungvn9, Oct 26, 2010 IP
  2. webcosmo

    webcosmo Notable Member

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    #2
    its because of the stimulus package Obama gave out:)

    in some countries I know even internet connection is very expensive. makes sense why a good hosting could be expensive.
     
    webcosmo, Oct 26, 2010 IP
  3. BarbieQ

    BarbieQ Peon

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    #3
    I think it's a strategy that encourage Internet work
     
    BarbieQ, Oct 26, 2010 IP
  4. Hosterbox

    Hosterbox Active Member

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    #4
    Its because in the U.S. a lot of people think they can simply create a webhost and get rich quick. They quickly realize that they don't have a business plan so they lower there prices in order to get customers.

    So just make sure to get some reliable hosting.


    -Matt

    from Hosterbox.com
     
    Hosterbox, Oct 26, 2010 IP
  5. Justin_Dupre

    Justin_Dupre Peon

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    #5
    It's cheaper in the US due to competition and the market.. cheaper price mean higher volume and good satisfaction for longer term.
     
    Justin_Dupre, Oct 26, 2010 IP
  6. CPACore

    CPACore Peon

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    #6
    Because America is a free country, and the coupon, and trial stuffs is a wise way to improve hosting sales, another thing is that the hard drives and internet connections are cheap in America, so they deducted the cost for hosting, and yes, there're many competition.
     
    Last edited: Oct 27, 2010
    CPACore, Oct 27, 2010 IP
  7. webbmaster

    webbmaster Well-Known Member

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    #7
    More competition.. free market!! I remember I bought a couple pine apples the other day, $0.99 each... I can not believe it is so cheap!!!

    Also, we are having a major deflation going on!!! Fed tries to do a QE2, and pump more into the system~
     
    webbmaster, Oct 27, 2010 IP
  8. infest

    infest Greenhorn

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    #8
    because there is so many hosting companies to choose from. Its basically a low differentiation industry so they compete through prices.
     
    infest, Oct 27, 2010 IP
  9. craig105

    craig105 Well-Known Member

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    #9
    Yep more competition here so they have no choice but to lower the price.
     
    craig105, Oct 27, 2010 IP
  10. webtalk

    webtalk Well-Known Member

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    #10
    because of high competition in hosting industry
     
    webtalk, Oct 27, 2010 IP
  11. stevemack

    stevemack Peon

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    #11
    you can see the price variation in US from all service providers because, there might be tough competition in the market that competitors are offering less than and that goes even more decreased.
     
    stevemack, Oct 27, 2010 IP
  12. theentry

    theentry Peon

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    #12
    Exactly there are a lot of cheap offers, however most of those aren't reliable. Make sure to read some reviews or ask at boards if you want to decide for which host to go!
     
    theentry, Oct 28, 2010 IP
  13. seotraining

    seotraining Active Member

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    #13
    I think there is lots of competition in US for hosting services so they are providing cheap hosting
     
    seotraining, Oct 28, 2010 IP
  14. averyz

    averyz Well-Known Member

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    #14
    Yeap lots of competition creates a flooded market and makes prices go down.

    Just choose someone that has been around for a while because in flooded markets people usually start going broke and pulling out and the guys that have been in it for a while will usually stay while the new guys will usually fold.
    A 3yr hosting plain with a company that is going to fold next month is rather worthless.
     
    averyz, Oct 28, 2010 IP
  15. lukeg32

    lukeg32 Peon

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    #15
    It's because the price to run a hosting company is so low; bear in mind that some you may have looked at are rebadged resellers, if you get to the actual hosting company the price will involve;

    * Power (and...)
    * Data Centre Costs
    * Hardware costs
    * Bandwidth
    * Staff costs

    The basic cost for a service is the power and data center costs. The hosting company will put a markup on this which will cover the rest, PLUS their profit. Power and DCC are relatively cheap compared to some places; this means that they can sell services at low cost. Hardware doesnt really come into the equation because of how many shared services you can sell from one rack, virtual hosting and so on.

    Also bear in mind that because of competition the margins are squeezed down so much that numbers matter; "budget" providers will fight for pure numbers of customers to push up profit margins whereas higher end and managed services will have more outlay on their own costs (and thus, will me more expensive).
     
    lukeg32, Oct 28, 2010 IP
  16. jointaldc

    jointaldc Peon

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    #16
    There is a lot of competition that undercut their competitors, so each company has to go lower and lower...
     
    jointaldc, Oct 28, 2010 IP
  17. susan_ham

    susan_ham Peon

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    #17
    I think maybe there is fierce competition in the hosting business, so most of hosting providers reduce the price to get more customers.
     
    susan_ham, Oct 28, 2010 IP
  18. Webgold

    Webgold Peon

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    #18
    Because America do things on a bigger scale.

    Host gator is massive and run on wind turbines out in the desert. Something like that anyway. If you do things on a bigger scale you can get the price down a bit like mass production of cars etc
     
    Webgold, Oct 29, 2010 IP
  19. k.mukesh

    k.mukesh Greenhorn

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    #19
    US has a good boom in the field of web hosting.Due to the large no of webhosting companies,it has made cheap due to tough competitions.In Us Webhosting provides an individual business plan so they become rich quickly.
     
    k.mukesh, Oct 29, 2010 IP
  20. -webmaster

    -webmaster Peon

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    #20
    Huge competition, great optical fibre infrastructure, cheaper hardware, skilled specialist workers.
     
    -webmaster, Oct 29, 2010 IP