Web.com a Commodity Business Charging Premium Prices

Web hosting is a commodity business and web hosting companies are price takers; customers choose their provider based on who offers the lowest price. Web.com (WWWW), a web hosting company, charges premium prices for its services while its competitors continue to lower theirs and add more services for free. As Fooling All the People Some of the Time points out, Web.com needs to grow significantly in order to pay back it’s large amount of debt, but Web.com’s pricing policy will hinder its attempt.

The following images are the web hosting pricing plans for Web.com’s three main web hosting brands, Network Solutions, Register.com, and Web.com.

Network Solutions’ Pricing Plan

Network Solutions web hosting pricing plans. Click image to enlarge.

Their full pricing page can be found here.

Register.com’s Pricing Plan

Register.com’s web hosting pricing plans. Click image to enlarge.

Their full pricing page can be found here.

Web.com’s Pricing Plan

Web.com’s web hosting pricing plans. Click image to enlarge.

More information on their hosting services can be found here.

Competitor Pricing Plans

The next couple of images are the pricing plans for some of Web.com’s main competitors. I chose these two because they are two of the top rated web hosting companies as ranked here. Both companies offer one pricing plan. Pay attention to the features they offer for under $4 per month.

iPage Pricing Plan

I wonder what lies behind that green door? iPage web hosting pricing plan. Click image to enlarge.

More information on iPage’s pricing plan can be found here.

Just Host’s Pricing Plan

“I said, I CAN’T HEAR YOU!” Just Host web hosting pricing plan. Click image to enlarge.

More information on Just Host’s pricing plan can be found here.

It would cost over $27.18 per month at Network Solutions and $29.13 per month at Register.com for the same unlimited services and free tools that both Just Host and iPage offer for under $4 per month. This is over 7x the monthly cost. Prices through Web.com’s site for the same services are still 3x more than Just Host and iPage. Premium prices indeed.

Web.com has two choices. Their first choice is to maintain their current pricing plans, miss out on new customers, and watch their existing customer base erode away. Web.com’s second choice is to lower their pricing plans and add more free services to effectively compete. Both choices lead to lower revenue, less cash flow, and an inability to pay back their debt.

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2 comments

  1. Pingback: Poor Service for a Premium Price « Miscreants' Ball
  2. Pingback: Look How Great Our Non-GAAP Numbers Are « Miscreants' Ball

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