# Market Research - KVM Pricepoint. What would YOU want to pay?



## SkylarM (Nov 22, 2013)

Alright so this is purely hypothetical, I'm eyeballing some potential possibilities for KVM services, and I'm curious as to what the low end market would like to pay for the service (this will be a complete overhaul from what we presently offer).

 

Location would be Jacksonville, FL if we roll anything out. No we're not looking at secondary locations right now.

 

We're talking reasonable rates, nothing like "OMG FREE LETS DO THIS YEAH!".

 

Here's the starting lineup:

 

KVM (Windows OKAY) Option 1

Ram: 512MB

Disk: 120GB

Bandwidth: 3TB on 1gbit

Cores: 2 (Dual Hex Core Nodes)

IPs: 1

 

 

-----------------------

KVM (Windows OKAY) Option 2

Ram: 1GB

Disk: 60GB

Bandwidth: 4TB on 1gbit

Cores: 3 (Dual hex core nodes)

IPs: 1

 

We're talking hardware raid, solid performance with the very serious possibility for SSD caching. 

 

If you could name a price for these specific plans, what would you pay monthly? What would you pay yearly?


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## MartinD (Nov 22, 2013)

What's with the onslaught of people asking where to provide services, what resources and how much for?


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## SkylarM (Nov 22, 2013)

MartinD said:


> What's with the onslaught of people asking where to provide services, what resources and how much for?


I just figured i'd give a price question a gander, there has been an influx in those questions though


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## memnarc (Nov 22, 2013)

KVM

2 Core minimum

512 Ram

30 GB Raid 10 Harddrive

1 TB Bandwidth

1 Gbps Port

E3 or E5 Server Processor

$20/year


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## NodeBytes (Nov 22, 2013)

memnarc said:


> KVM
> 
> 512 Ram
> 
> ...


I would say 7/month is fair for this.


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## SkylarM (Nov 22, 2013)

memnarc said:


> KVM
> 
> 512 Ram
> 
> ...


Our hardware won't be E3 or E5's, will be an older proc similar to the L5639's we run for OVZ now (can't give away all the details eh). also disk space will maybe go down a tad (100GB on the 512 instead of 120) but thats the idea we're looking at.


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## lv-matt (Nov 22, 2013)

MartinD said:


> What's with the onslaught of people asking where to provide services, what resources and how much for?


Can we introduce a new rule?

Lets be honest, all these threads are less about market research and* more about advertisements for there brand*, and should belong in the advertising forums.

If it was really about research you would be first of all contacting and surveying current customers and past customers and analyzing your cancellation requests to identify trends, and see if customers are leaving to go to other hosts and what hosts they are going to etc.

Then if you really was doing market research you would post in a forum that wasn't dominated mostly by other VPS providers (at present although it is growing).

Its a simple fact that you are doing this to increase your brand awareness and to advertise your signature and brand.


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## memnarc (Nov 22, 2013)

NodeBytes said:


> I would say 7/month is fair for this.


People have done similar specs.  It's really competitive right now.

https://www.bluevm.com/cart.php?gid=42


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## NodeBytes (Nov 22, 2013)

memnarc said:


> People have done similar specs.  It's really competitive right now.
> 
> https://www.bluevm.com/cart.php?gid=42


Yeah, true. But their needs to be more room for profit and more dedicated specs. I'd rather pay a bit more and share the node with a few less people.


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## sleddog (Nov 22, 2013)

memnarc said:


> People have done similar specs.  It's really competitive right now.
> 
> https://www.bluevm.com/cart.php?gid=42


Mostly as a loss-leader / limited promo.

For a standard & sustainable price, $5 - $8 / month is more typical.


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## javaj (Nov 22, 2013)

memnarc said:


> People have done similar specs.  It's really competitive right now.
> 
> https://www.bluevm.com/cart.php?gid=42





NodeBytes said:


> Yeah, true. But their needs to be more room for profit and more dedicated specs. I'd rather pay a bit more and share the node with a few less people.


Yeah, no disrespect to BlueVM but when I see 1GB Ram for $30 Annually its just a huge red flag, $2.5 a month on something like that leaves next to 0 profit unless you pack that server extremely tight.

I guess I'm like Nodebytes, I would pay $5 bucks more a mo for better performance, that and there is more likelyhood paying more that the host will be there after 6 or 9 months.


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## SkylarM (Nov 22, 2013)

I derped my math, swap the disks around on the 512 and 1024 and we're good. My bad!


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## drmike (Nov 22, 2013)

The Windows "support" is asking for headaches.   Seems to be a source of soreness for many providers.  Probably artificially inflates load too.

Either package as annual probably gets too rich for the risk in my blood.  Monthly and quarterly are where it is at on these I believe.

Rest of it looks strong and mighty big bandwidth allocation.


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## sleddog (Nov 22, 2013)

drmike said:


> Either package as annual probably gets too rich for the risk in my blood.  Monthly and quarterly are where it is at on these I believe.


I have no problem with annual from a reputable provider. In fact I prefer it.


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## shovenose (Nov 22, 2013)

I will pay as much as it costs to get great service with reliability and stability, in a location and with specs useful to me. That's my rational answer.

My LowEnd* answer is I want 4GB KVM/1TB Disk/Unmetered 1Gbps for $7/mo. fully managed.


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## devonblzx (Nov 22, 2013)

Market research sure has gotten easy.  You just ask a question in a forum rather than actually researching.


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## scv (Nov 22, 2013)

Every day we crowdsourcin'.

Serious question though: Why so much disk space for your 512MB?

The ideal price point for a "budget" 512 should be around $8-12 depending on the other available resources as well as the physical location. Any standard (non promo) pricing lower than that just screams "We pack it tighter than a clown car" in my book...


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## SkylarM (Nov 22, 2013)

scv said:


> Every day we crowdsourcin'.
> 
> Serious question though: Why so much disk space for your 512MB?
> 
> The ideal price point for a "budget" 512 should be around $8-12 depending on the other available resources as well as the physical location. Any standard (non promo) pricing lower than that just screams "We pack it tighter than a clown car" in my book...


I wasn't thinking straight when I posted it, meant to post the disk space the other way 'round


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## budi1413 (Nov 22, 2013)

2 cpu core


1024 mb memory


100 gb storage


1 tb bandwidth


$7 per month


Your current kvm pricing is not that bad though.


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## willie (Nov 22, 2013)

I'd suggest a pure SSD option.  Most of my stuff either runs in small servers (128MB) or else is too CPU-heavy for VPS's and needs massive amounts of storage (TB's not GB's).  If I think of 512MB-1GB KVM servers, that evokes midsized database applications, like vpsboard.  Those are access-intensive without needing very large capacity, so SSD is the right thing.  If add-on hard disk volumes (100GB chunks, say) were available at extra cost, that would be a nice extra feature.


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## mcmyhost (Nov 22, 2013)

My Fiction

-----------------

1. $5

2. $7

Realistic

---------------

1. $7

2. $10

But there is honestly no need for such large Disk Space. I prefer 10-50GB on my KVM VPS's, otherwise I feel like I am paying for something I don't need.


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## rsk (Nov 23, 2013)

Back on topic ...

Skylar, as a KVM web host my self, I will give you my advice. I know most of the companies here are huge compared to us ... but would you rather have

10 clients who pay $5 (= $50)

or

5 clients who pay $10 (= $50) 

?

Of course it's not about the money, it will be all about the quality of the service that you will offer - put the price that you seem comfortable with. Less people per node, cover costs, and everyone will be happy.

Just a small advice


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