Hosting Packages Price Trap of Web Hosts

By: Ejaz Alam | Topic: Hosting Guide

It is a normal human psychology to go for best possible things at lesser price and same holds true for the webmasters looking to buy web hosting packages at cheaper rates. During December you will notice sudden increase in the discounted packages offered by several web hosts. On the occasion of Cyber Monday, Black Friday, Christmas and New Year almost every web host offers coupons and discounts on their web hosting packages.

Sometimes you will see unbelievable prices that are so low that almost every webmaster is tempted to avail the chance to get cheaper hosting. There’s nothing bad in getting hosting packages at lower rates but you have to be very vigilant when going through the terms/conditions of the renewal price for the hosting package you intend buying.

Reseller Hosting

There are two types of price tags traps for a hosting package

1. Renewal Price Trap

You are lured to buy a hosting package at a discounted price that may range from 25% to 50% or even more lower than the actual price. However when the renewal time comes of the hosting package then you are charged the actual price that may be very high and in some cases out of your budget limits.

So you are left with only two options, either to change the host or arrange for the money one way or the other. In both the cases you and your website has to face lot of hassles and disturbances.

What to do?

Study the web hosting package carefully and ask the web host about the renewal price beforehand and if it suits you only then buy it. Look out for that web host that has everything clearly mentioned while signing up for the package.

The best solution to me is to sign up with the host that offers ‘Price Lock’ discounted package for their customers. Price lock means that if you buy a hosting plan on a discounted price you will be charged the same price on the package renewal time. This is the best option for you if you buy a hosting plan at discounted rates.
In this renewal price problem I have personnel experience with 2 hosting companies, Arvixe and Hostgator, let me share them with you.

Personnel Experience with Arvixe & Hostgator

Couple of years back I bought a discounted shared hosting plan during Cyber Monday sale for just $30 whose actual price was $60. At the renewal time next year I was billed for same $30 for another a year and this will continue till the life of the account. On the contrary I bought a hosting plan from Hostgator worth $50 but on the renewal time they sent a bill of $140. The main point to note here is that Hostgator didn’t mentioned anywhere that the normal price will be charged, even if they have done it it was hidden somewhere between the lines where normal surfer can’t eye it. As a result they have lost a client who had bad feelings for them because I transferred my websites from them to other web host.

You will find number of good web hosts who don’t hide anything from you, on the website of InterServer you will find ‘Price Lock’ clearly defined.

2. Time Price Trap

This shouldn’t be really called as trap as most of them term it as business tactics in which a hosting plan is announced as ‘As Low As $4.95’ , ‘For Only $3.95’ or something like that but when you go to sign up page that price is for 2 or 3 years packages only. However if you want to buy it on monthly or yearly basis then the price is very high.

I found this on the website of one of the popular web hosting company website, the price for a hosting plan was very attractive as shown in the image below:

Price Trap

However when I dug further to my astonishment the low price advertised was for a very long term i.e. for three years or 36 months. It means to avail the opportunity of this low price you have to pay a huge amount that most of the webmasters may not like, see the image below:

Price Trap

In this case you have to pay $286.20 for getting discount on this plan, that is a amount that most of you may not like to commit specially if you are new with a hosting company.

This attracts lot of people but then they get disappointed on seeing that they have to pay lot of money lum sum in order to get this discount. Well this is a way of advertising a product and if you have carried out good research of the web hosting companies then this tactics shouldn’t bother you much.

Editors’ Note

These are some of the price tactics of the web hosts and you have to remain careful about them in order to avoid any misunderstanding and hassles afterwards. Not all web hosts adopt such tactics and you will find number of good and fair hosts that have no hidden charges and they clearly define their hosting plans.
If you have any experience regarding this issue please do share it with us at Rate a Host for the benefit of other webmasters.

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