When shopping around price isn’t a concern - it’s the perceived stability of the hosting company and the accessibility of customer support.
Warning bells go off as soon as I see hosting plans that are just too cheap - I expect to buy a decent reseller account for around $15-$25 USD in the USA, or £15-£25 for a decent reseller account in the UK.
So when hosts offer lower than that I wonder just how stable the hosting can be.
But as a general trend, can price really be indicative of quality? Or is it a factor that simply needs taking into account within proper context?
Price can certainly be an indicator, but it really depends on what you need. One of my hosts I use has a very low-level re-seller package that I have been fairly happy with. When I first signed up with them a year ago they had some issues because they had people setting up free hosts and everything else on there as they offered unlimited domains.
Once they put in some moderate restrictions on domains, and utilization things have been very smooth.
The unfortunate flipside is higher prices do not necessarily equate to equality. You can overpay for some pretty crappy webhosting service
Bottom line is costs, you can get cheaper by cutting costs, this is usually achieved by cutting corners, generally cheaper hosts will put more load on a box than a more expensive host (not always true, some will charge a lot and still overload )
You see so many hosts these days offering 24*7 support on $1 packages, when you take out the PayPal fee and the server cost, I can’t see how they can have anything left over to pay quality support staff.
We manage costs by going for a mid-range (usually 2.4-3.0GHz) system and putting a sensible number of accounts on it.
Best bet is to simply ask the potential host about their setup, if they’re running a viable business model, then this should be obvious from the quality of the reply you get.
If you have the framework in place and can scale up well, then of course you can offer much better quality at the lower price, but you then run into being a number on the balance sheet rather than Brian from Web Hosting World.
Difficult call to make though, gut feel plays a big part, not always reliable though.