How do you see VPS pricing in the future on LowEnd markets?
Scaleblade
Hosting Provider
Hi,
We've been doing low end vps for a while now that being said its not been a major focus, the problem is when we released our Ryzen 5000 lineup it was "LowEnd" but in the past few years with other offers coming up its uhhh well quite expensive now in comparison.
So its time for us to do a spring clean of our vps offering and get some new hardware in.
I wanted to do a general community gauge of costing.
Mockup offer
Ryzen 9 9950X
1GB DDR5
20GB NVMe
10Gbit Port @ 2TB Month
IPv4 and IPv6 IP (routed /64 standard with all our vms)
This plan isn't for everyone, it specifically targets people who wants latest generation cpu with crazy r/w drive speeds.
What would you say is both fair and "no brainer" pricing for this kind of offering?
(fair being defined as you'd see it on a website on a random day of the week)
(no brainer being lowend exclusive deals, black friday, holiday discounts that kind of thing)
Also in your opinion is this kind of service even wanted on these sites anymore?
The more I look I see less and less latest gen ryzens appearing and more of this older Xeon E5-V4 cpu's for $7/yr.
Comments
$7.
youtube.com/watch?v=k1BneeJTDcU
I should of known to expect this.
To be comparison, This exact specs on one of the provider i know costs around ~5.5USD/m, which this provider is not active in Lowend market anymore, So i'll assume that this is every day price and not lowend.
But for no-brainer ~7/y or lower of course
I'd be curious to see what kind of volume they push at that rate, I think I originally budgeted for a little lower around the 4.42USD/mo mark.
Should have, btw. But yeah the sentence would correctly be "I should have expected this."
youtube.com/watch?v=k1BneeJTDcU
$1/mo
we can also accept this
This provider has a lot location but there is only one with 9950x. So i believed they can find profit from non 9950x region to cover the low profit of 9950x node i think
But what's your ideal price anyways?
As a host I stopped offering ipv4 with plans below $4 / month.
Several providers offer services with 3GB ram, 9900x, ~60GB nvme for around $5 / month, moving that in 1/3rd would put you down to about $1.666 / month for your offer. (every provider has their quirks though) Assuming you fill up a system with 192gb of ram to about 80% your potential margins are pretty good - even if the client might get the occasional cpu steal during very busy nights. Only real concern I have is letting ipv4 addresses go at said prices, and the transaction fees would put you within range of "quarterly or yearly sales only" territory.
Normal sales prices? I'd put $2 / month / $20 / year
Blackfriday loss leaders with limited stock? $ 1 / month $12 / year
Sorry what I meant is we could do 4.42USD/month per GB at the scale/deployment we are looking at currently.
This is the main reason I am considering going the newer hardware/premium end of the lowend-market over reusing older hardware with yearly plans. Its really not worth the IP costs (and thats with us that mostly buy our ips outright now).
Could you pm me links to the sellers doing Ryzen 9900X's at $2/month as well as 9900X 3GB plans at $5/month. I'd be curious to dig into them and try to figure out how they get margins so low there.
There you go!
https://lowendspirit.com/discussion/9127/z-plus-hearts-and-hooves-day-performance-vps-release
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just plot a longer ROI for the IPs and $7/yr will be good to go 🙈
I bench YABS 24/7/365 unless it's a leap year.
Or you can run on losses and make it free for all!
youtube.com/watch?v=k1BneeJTDcU
Thanks to Scaleblade for contributing a server to FreeVPS.org!
Much appreciated!
@Scaleblade -- A near equivalent to your mockup offer might be Linveo's offer posted here at LES on February 12:
"Ohio and AZ are fully 9950X. Texas is currently a mix, but all new nodes are on the 9950X CPU.
AMD KVM 1GB
1024 MB RAM
1 CPU Core
25 GB NVMe SSD
Port speed ??
4000 GB Bandwidth
1 IPv4 and IPv6/64
Price: $2.10/month or $21.00/year with coupon code LES65AMDKVM2025"
So I am guessing $2.10/month or $21.00/year must approximate the "fair" Low End price for your Mockup Offer. Of course, the "no brainier" price is lower, or even a lot lower.
Seems like many people do a lot with small resource VPSes. Ryzen seems super popular these days, maybe Ryzen might be the only processor Low Enders really want?
Good luck with sales!
Thanks again for your donation to FreeVPS.org! 
I hope everyone gets the servers they want!
Thank you for your genuinely helpful post.
Looking at Linveo maybe I have been approaching this pricing topic wrong. They seem to have that mockup plan listed significantly higher at $6/mo for “normies” with LowEnd discounts to $2.10
Our focus would be releasing this in our European site where opex costs are higher so we may have to make minor adjustments to pricing based on region.
Would you say this is a common practice or would people prefer a flat rate price across a provider that supports multiple locations even if that flat rate is slightly higher to support the more expensive locations?
We will not buy 1GB at any price.
For the doubled offer:
We pay $18~22/year on Black Friday, 10 units in stock.
If we don't get it, wait until next Black Friday.
No hostname left!
Race to the bottom, as always.
The 9900X's at $2/month pretty sure they have a 25% cap, so it feels like a good old E5.
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ITS WEDNESDAY MY DUDES
What we like to avoid, it’s why we have been on the pricer side in the past. We avoid aggressive cpu caps and over allocation on nodes.
My opinion on it is, if you wanna spend $24/year then you go to a provider using a 7-8 year old Xeon with enough cores to cram 500+ VMs on.
$2 a month is likely unachievable especially in our London location. I also have to take into account cost of support and our extra systems we offer like BGP and BYOIP which a lot of providers either don’t offer or charge a setup fee for too.
I think we could position ourselves relatively competitively looking at hosts like Linevo and BuyVM.
I have seemingly discovered however keeping a larger margin at baseline to offer competitive discounts on these sites seems to be a better idea than just offering the competitive rate as your standard.