Cheaper Doesn’t Necessarily Mean Worse

In general, we buy some product or service, we tend to believe that the more expensive it is, the better quality. Of course this applies to web hosting too, it’s just another service. This couldn’t be farther from the truth. Yes, a lot of times this is the case, but if we dig a little deeper, this is not the case.

The cheap car vs. the expensive car

I was watching a television show  about cars the other day and though, I’m not into cars that much, I sat down and watched for a while because what I heard was interesting. They were comparing two cars with regards to value. One of the cars was a BMW, quite expensive, and the other was a cheap french car.

Price & Value

The price of the BMW was about ten times more than the other’s. Everyone knows that when you buy a car (or any other product) there is almost an instant  and significant drop in price. So if you’d like to sell it with one minute after you bought it, you’d lose a lot of money on it, even though you didn’t use it at all, but it’s not regarded as new anymore.

This doesn’t apply to services, because a service cannot get old, it doesn’t have amortization, but from a value point of view, there is a connection between them, because after they tested both of the cars it really came out that the cheaper car has a lot more value. Here’s why…

Performance & Costs

The BMW had more power, but it uses more gas. So, not only the price is higher, but we have to pay more to use it,and webasically use it for the same activity as we owuld use the cheaper one. Insurance costs are about ten times higher compared to the cheap car.

In web hosting, when we sign up for a more expensive plan, like a VPS or a dedicated server, these use more resources too, but not as much more, as the providers charge us. So there is an “invisible line” that says you are using a VPS, and even though the up keeping costs are not suggesting this, you have to pay this much. Similar to what happens with big brands, most of the time, we have to pay for the brand, the real value is not that high compared to another product, but the brand dictates.

I will never upgrade

Ever since I started a website, I had cheap hosting. If you find a good web host, no matter what kind of plan you are on, the service should be good. This website for example, is hosted with FatCow (aff. link, full disclosure here), one of the most popular cheap hosts. They have more advanced hosting too, but I don’t need it.

Their shared hosting is first class, completely appropriate for my needs. I’m not a developer, I don’t need custom operating system on my server, I just want to host my WordPress powered website, which is the most common need, so my advice is, don’t throw out your money on the window, make a wise decision. If you’re planning to create a blog, shared hosting is more than enough. Check out our shared hosts and choose one for yourself.

In Category: Blog

Frank Rankowitz

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