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Running a GSP
#1
As I'm sure many of you are aware that running a GSP is not easy. I currently help out at PlugPayPlay but I'm wondering, does anyone else run a GSP currently which is working well? If so, what's the trick to making it a big success? We've got low prices, just 25p Per Slot but that's not working as well as we had hoped.

Is there any good places to do some marketing which will generate hundreds of sales or lots of attention? Any help or advice would be much appreciated!
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#2
The lower the price, the more likely the host is run by kids. A real business can't make profit at 25p per slot.
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#3
Well, we are making money at 25p Per Slot. We're not run by kids either. It's a shame you all judge before trying out. Cheap prices don't mean poor servers or customer support. We offer brilliant support and low latency servers. I was just simply enquiring if anyone knew of some great ways to get more sales. We're obviously running though and have been for three years.
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#4
They aren't even paying you to help out? Thus the 25p...
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#5
"ENS-LTD", I do not think that Artie (Bubka3) was trying to throw you under the buss or anything. He is just stating some facts, and it's true. A new business cannot make profit at .25/slot. Hell, I think it's hard to do so even when you are a bigger GSP.

In order to run a Game Server Provider you cannot rely on your pricing to attract clients to your front door. There are several things you need to look at, which are pretty common sense.. Such as being in the industry for the right reason (not just to make money, guess what you need to spend money to make money). Providing quality customer service, and even offering something other companies do not provide.

There are many things you need to look at when it comes to managing any business, and unfortunately, if you do not have those basics down you probably shouldn't be in the industry just yet.
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#6
We're not a new business, at all. We have been hosting for over three years and we're about to enter our fourth year this coming April [2013]. PlugPayPlay is a division of ENS-LTD, which has many other divisions. Some are still in preparation and some are already fully up and running. iGameHost is another division of ENS-LTD which is also a GSP, the US Side whereas PlugPayPlay focuses on the UK Side. We also have another division on the way to sell VPS' and another one focussing on Web Hosting + Domains. We're not stopping there either, we have many more plans.
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#7
We never said you were a new business. The point I was trying to make that at $0.25PS, you cannot run a business w/o cutting corners somewhere. It's simply not possible unless you like making a loss.
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#8
Your slot pricing is not the key to getting sales. You really need to show the community that you are good at what you do, and can do it efficiently.

The way you decide to market the company is your own choice. However, after 4 years and you ask this now, makes me wonder how much of a loss this company is truly at.

A .25/slot personally turns me away, not sure about other people.

Why? Well, it's not industry standard, and it does give the impression right away that you are cutting corners somewhere.

I own a Dedicated Server Hosting company, and have cabinets in Chicago.. We are opening a Game Server Provider, we cannot even charge .25/slot without losing money and cutting a lot of corners.
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#9
(12-10-2012, 11:25 AM)PDS|Marcus Wrote:  Your slot pricing is not the key to getting sales. You really need to show the community that you are good at what you do, and can do it efficiently.

The way you decide to market the company is your own choice. However, after 4 years and you ask this now, makes me wonder how much of a loss this company is truly at.

A .25/slot personally turns me away, not sure about other people.

Why? Well, it's not industry standard, and it does give the impression right away that you are cutting corners somewhere.

I own a Dedicated Server Hosting company, and have cabinets in Chicago.. We are opening a Game Server Provider, we cannot even charge .25/slot without losing money and cutting a lot of corners.

Epic post is epic. +1
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#10
Looking at the recent thread by this company, they not only offer .25/slot pricing, but also give away a lot of free things.

http://forums.srcds.com/viewtopic/18809

This isn't the way to make money, I don't understand how you can run this company while also balancing your servers, but giving things for out for .25/slot and giving like everything else out for free.

If you are looking at how to increase your incoming monies, start with charging a little for all the things you're giving out for free.

You could make these prices lower than other Game Server Providers, while also still making a little money, to help pay your overhead.

It's like any business, once you start covering your overhead for "x" amount of months AND also start paying off your investments (licenses, servers, etc.) Then and only then should you start handing things out for "Free".. I mean sure go ahead and give free sub-domains or whatever, but to give a lot of things out for free, or for .25/slot when the average is not even near there in the industry.

I haven't visited GameServers.com in a while, but I do not even think they even offer slots for .25/slot -
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#11
I understand where you're coming from and all the points you have made. However, we easily cover our overheads with the 25p Per Slot prices and with giving things out for free. We have a very stable network and many positive reviews and feedback.

We do not cut corners, or make a loss. Both of which you've said we do in a previous post, you should not assume something about a company before trying them out. We own our hardware and our network, and we're a fully registered company and VAT Registered.
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#12
Hello, please re-read my posts. I never said your company was cutting corners. If you cannot take advice, don't ask for it.

I simply implied that if you're charging 0.25/slot it will give the impression that you're cutting corners.

A 32 Slot server for $8? Why not change your pricing to at-least $0.50 where you are still in the lead of competitors, and making twice as much as you were before hand. I guarantee a price increase to $.50 won't scare sales away, I'm sure more sales are scared away at $.25 than anything!

Good Luck!
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#13
We have seen an increase of sales when we dropped down to .25 from .50.
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#14
Well, than why are you having an issue with getting sales, and paying people? Doesn't add up.
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#15
I don't re-call saying we don't get paid, ever. That is an assumption you have made. Also, we are no longer getting issues with sales and they have been booming and we're making lots of profit. Who says you can't make profit at .25p Per Slot!
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