How to set hosting pricing policy?

Question

Project management

Good afternoon!

How do all docks set pricing for hosting services? The usual formulas for calculating the cost, prices for services are clearly not suitable here. For example, there is 1 server, you need to calculate the cost of hosting tariffs that will be on this server. Many small hosting companies, as I see it, build prices from their heads and do not rely on anything other than competitors' prices.

After all, obviously, someone on personal experience calculated the real price for hosting services?

Answer 1

Take 5 market leaders, research their prices and put something in between.

Answer 2

First, calculate all costs. Determine the amount and number of customers to break even.

Answer 3

Calculating pricing, with its basic principles, is a terribly thankless task. It is not objective in nature. Since you have to operate with floating statistics (or even data in general).
So, there are two options:
1. As Vadim Galtsev already wrote, you can analyze a number of competitors and calculate the average price tag.
2. Set your price - below or above the market (but in this case, prepare a platform for interpreting these calculations).
I'll explain a little. Below the market - dumping, which means you will need to tell everyone that, for example, you have blah blah blah
Above the market - almost the same, you will have to overestimate, for example: the level of service, speed, etc.
Of course, to know what consists of what ( Your price) is necessary, but to calculate the optimal is only at your discretion.
It’s good to do the classic calculation if you bake pies, everything is in grams and it’s easy to figure it out. But, here, a slightly different product.
I hope my answer will be useful to you.
¡Saludos!