Price Undercutting & Web Hosting

Lunarpages Web Hosting offers $2.99 domain names

The response and feedback from customers at Lunarpages.com has the industry in a frenzy. How can they register domain names at these prices? Can the smaller web hosts even compete with this new level of rivalry or even survive it?

Lunarpages.com a multi award winning Californian based web hosting company already provides a free domain for life to their customers. This week they announced a special on additional domain names cutting the price from $14.95 to $2.99 each for a limited time to new and existing customers.

“We have been in business for almost 6 years, and the industry has become insanely competitive recently. Every day we see other hosts dropping prices to the point that we know they are running at a loss. Offers of massive disc space that will rarely be utilized and data transfer on shared servers comparable to dedicated hosting means the big O – Overselling” said Amy Armitage of Lunarpages Web Hosting.

“We won’t compromise our business model, server stability or uptime by overselling which will leave our customers feeling cheated and forced to upgrade to a dedicated server. To remain competitive we have found another way to enhance our offerings, without compromising the level of service and support that has earned us the reputation as leaders and veterans in the web hosting industry. Low priced domain names and partnerships with leading companies enable us to give back to our customers without resulting in a price increase to them”.

Other registrars and hosts lure a customer in with a cheap domain name, and come renewal time domain name registration costs increase up to 500% and this not only stings the customer, but tarnishes the industry’s reputation in general. Lunarpages’ offer is superior because domains purchased during this special period will be renewed at the original price ($2.99 for 1 year or $5.95 for 2 years) for as long as the customer is hosted with them.

“I researched the current domain name register offers out there, read the bad press and general grumblings of hosted customers utilizing domain deals with our competitors and created a marketing concept without these limitations” said Amy Armitage

Rumor has it that Lunarpages will be announcing their partnership with an Internet 500 Company in the next few weeks enhancing their offerings and increasing their sales three fold.