Regarding the "Do the math" statement. Have you ever considered that the
overhead for one businesses location may be much lower than another's?
The overhead costs for a business, operating over the internet, in India
for example, will be much less than the overhead in New York or Seattle.
A business operated from the home will also have lower overhead than one
paying for prime real estate.
Also, consider the exchange rate. That $1.50 per domain is worth much
more in may parts of the world than it is in the US.
Lower costs mean higher "potential" profit margins, at the same pricing
level.
Do the Math...
Sucess really comes down to marketing and targeting specific market
segments and providing good service. Keep in mind that NSI and
Register.com are outselling everyone. Many of their customers won't even
consider a rock bottom priced reseller because they simply don't trust
them. Most customers are business people and most experienced business
people understand the economics of bare bone pricing.
OK when buying retail items, but very risky when paying for services and
trusting your web identity. Most businesses understand that a low volume,
low priced reseller that offers you the world for $15 or less has a much
higher chance of failing (and failing sooner than later) than a business
offering only the services most customers need at a higher, though still
acceptable, price.
Remember, price is not everything a customer is looking for.
Dependability, stability and trustworthiness is more important than the
lowest price. Especially in this market!!!
Besides, we're only talking about a few dollars per year, per domain.
Most customers have paid $35 per year to NSI, without complaints. Why try
to drop below $10 when most customers will gladly pay $20-30??? You're
still saving them money and you'll make more money for the same effort.
Enough Said...
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Lawrence "Buddy" Page
DataShapers, Inc.
http://www.datashapers.com
[EMAIL PROTECTED]
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