We don’t run a lot of price promotions on our domain names, certainly not as many as other web hosts. Instead we prefer to offer our domain names at low prices all year round, what the supermarkets call EDLP (every day low prices). There are some hosts who have a reputation for being cheap domain providers because of past low cost strategies they have long since abandoned. The table below shows the prices of the major domain names from the UKs largest web hosts.
The prices show the cost of the minimum registration period available (e.g. a co.uk can only be registered for 2 years) and all short term price promotions have been removed to give a true reflection of the prices. At no stage have any web host’s prices been massaged or edited to make us look better. I’ll be honest, I’m surprised how compressively we have beaten the competition. I was expecting at least a couple of our domains to be undercut, but that isn’t the case. It is also worth pointing out our prices have been at these rates for years, these aren’t new price points for the purposes of this table.
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These prices also ignore the massive savings our customers can make on bulk purchases, often up to 25% off! Find out more about our domain names and bulk domain name prices.
Keith,
Thanks for the feedback.
All web hosts charge VAT to non-businesses, so you can apply 20% to their prices too, meaning we are still cheaper for you to buy domain names from.We also can’t control the price your payment gateway charges you for a transaction so I think that’s a bit unfair.
With regards to the blog post you highlighted, bundling domain names for free with web hosting packages is a tried and tested formula amongst many web hosts and they have been using this for over a decade. The high margins associated with shared hosting offset the cost of the domain. I was simply bringing this tactic to our resellers’ attention. I appreciate reselling domain names can be a low margin product and that is why we offer bulk discounts and I recommended using them to increase web hosting sales.
Matt
Hi Matt,
Not too bad on the prices tbh, for your customers at least.
However the story is very different for us Resellers. Considering the following:
(example)
.co.uk from HI = 5.58 (+VAT=6.70)
so that’s 6.70
+ payment gateway fees (average/best being “3.4% + £0.20”)
= 7.12
That’s roughly 130% of the original advertised price of 5.58 .
So before we even add any profit or add VAT ourselves, we are already 130% the price of Heart Internet
We Resellers can’t even compete with HI’s competitors’ competitiors LOL, let alone HI. And to actually create a blog post stating that we should sell Domain Names at a loss in order to cross-sell is, in my view,just not right. In alot of cases customers would be put off because of the initial Domain Name price.
Blog: https://www.heartinternet.uk/blog/web-hosting-resellers-why-domain-names-are-your-baked-beans/
Keith