Unless you are in a commodity business never compete on price. You are doomed to fail if you compete on price. Instead of competing on price work on your business to make it better then everyone else. The hosting and domain industry in the last 4 years has companies who are building their business solely on competing on price.

For example would you be surprised if I told you that GoDaddy has never made a profit since they have been open? Yes they make millions of dollars of revenue but at the end of the day they are always short from making profit. What do you think happens to a business that runs year after year in the red?

Several other hosts in the US who compete sole on price have resorted to unethical business practices to keep afloat. These hosts have been stealing customers 404 pages and inserting high paying pay-per-click or affiliate searches. What happens is if someone goes to your site where a page does not exist they usually get a 404 error. On one of these hosts instead of getting an error page you get an affiliate page. How scary is that?

We do not compete on price and will not compete on price. We will instead work on building a stronger service.