Web Hosting - Part 2: Undercut
After the first blog post where I was talking and writing about some of the most common practices in the web hosting world, as overselling hosting, it is a time for the second part of this mini-series which will be about undercutting...
The undercut is a very popular way of promoting some business, product, or service... One of the most popular days when you can find an enormous number of undercut things is Black Friday Day... You can find a million products and services for a cheap price, and usually, it is a very profitable day for clients, but also for businesses...
What's the point of giving some products under the normal price?
Well, usually it is one of the two most common benefits for the sellers... One is reaching more people and getting new customers, and the other one is "killing" the competency and taking over the monopoly in the industry...
The same things happen occasionally in the web hosting world and it can have benefits for the end-user, but it can be also devastating for the long term business...
Let's talk about it...
Thank you for your valuable time,
~ph~
Music in video:
Growing Up by Scott Buckley https://soundcloud.com/scottbuckley
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▶️ 3Speak
Good information. I think this type of promotion is also called 'loss leader' . Sell something at a loss get get people in the door and hope they buy additional things.
You are probably right... But, I would say that
is a better reason... but obviously, it's not too nice to say it at loud... lol
The Loss Leader was used by a major phone company, they released a new phone and sold it for cost as a way of getting their brand out there
It worked , because the very next product they released netted them over 2 billion dollars :)
... and they have probably took over a bunch of customers from the other company... :) win-win for them... :)
There seems to be a lot of competition in this sector and players are competing on a worldwide level which makes it difficult to survive such "attacks".
Some time ago, I was looking for a hosting where I could put a django framework website that is based on python. I'm not a specialist and I got lost in a dense forest of technical terms and in the end I couldn't find anything suitable. In order to install django I would need to have a SSH access to the webserver. It took me already a couple of days to understand the difference between SSH and FTP. Then it was often not possible to find out whether python was supported. Then there was the question of Data Bases. Would I need mysql, mongo or what...
It's just too blody complicated for somebody who is not a specialist and then when you look at the prices. You have offers from 5 USD to 150 USD per month. In the end I gave up this project and I continue with my websites in .php. At least I understand what is necessary and how it works;-)
Well, you probably needed your own VPS or a complete machine... Then you can install what you need on it... But, it needs admin skills and it's usually more expensive than buying a normal shared hosting...
I had one customer who asked for python+django combination, but I had to reject the offer as it was too complicated to implement on my machines... (I hope that it wasn't you... lol)
Probably wasn't me ;-). I started out learning a new programming language (python) and I wanted to implement what I was learning but I didn't know I had to learn about VPS and servers as well... lol