Why IXWebHosting Reduces its Web Hosting Price

Jun 16
06:52

2007

Sean.Ray

Sean.Ray

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This article will dig into the reason why IXWebHosting increases the price its web hosting plan and change it back in a very short time period. And it's a good lesson for those web hosting service provider.

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One interesting things happened on IXWebhosting recently: IXWebhosting raised the price of its most popular plan,Why IXWebHosting Reduces its Web Hosting Price Articles Business Plus, from $6.45/month to $7.95/month in Late April and changed it back to $6.95 in early June quickly. As one of the leader in web hosting industry, IXWebhosting is famous for providing budget web hosting solutions for their customers: huge disk space, huge bandwidth, Host 8 domains in one plan, 2 domain for free, and 8 dedicated IPs. Compared with other web hosting provider, this plan is very attractive even we set the price to $7.95/month. But what make IXWebhosting change the price back?

First, let's look at the data in WebHostingClue.com, we can easily find that the sale of IXWebhosting is down significantly after increasing the price. And this number goes up very quickly after the price is reversed back. This means the customers vote "No" to the increasing price.

So what's the key reason behind it? Let's look at the market sector IXWebhosting target at, the main customers of IXWebhosting are small business companies and individual, who are also the potential customers of a lot of mid-size and small web hosting companies. Most of them set the price of their plans to be below $7/month, like $6.95/month (Lunarpage). And some even lower, such as HostMonster ($5.95/month), Startlogic($5.95/month) or PowWeb($5.77/month). All those has made the consumer to set their expectation of the price to be blow $7/month when hosting their individual web site or small business web site. But what IXWebhosting has done recently has broken this bar and then it was punished by the market consequently.

But any way, IXWebhosting is back on the right track now. Hope this change can bring more customers to them since it's really a great company and the plan is very cost-effective.

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