Decrease of Price For Vultr Servers
We all know that Vultr recently decreased their Server Pricing.
It's now offering 512MB Server fro 2.5$ and 1GB Server for 5$
But Cloudways is charging insanely on top of that for offering Vultr Servers.
For 5$ Vultr Plan ( 1GB Server ), We need to pay 11$. That is 220% more than what we pay at Vultr
This insane price is for the other plans too. And, There's no 2.5$ plan option in CloudWays.
please support this feedback until CloudWays changes the pricing.
Allan Kronmark commented
First of all, thank you for providing an excellent service - My life would be so much more difficult without you!
When it comes to pricing, I try to see it from both sides. Of course you (Cloudways) should make money and cover your costs and everything.
That being said, I think you might be locking a lot of small users on smaller plans, because the upgrade isn't worth it. On one side, companies over a certain size might leave as they mature and can see a massive saving by moving their activities away from CW. On the other side, small customers such as myself is reluctant to upgrade because of the cost/benefit - it's simply cheaper to spin up new instances. For each new instance, you get $6, but you could be optimizing the business in terms of support costs by reducing the number of servers. Further more, it is possible that more people would opt for a better configuration, thus you would be earning more per instance.
Now, I'm not saying you haven't thought about this. In fact, I'm pretty sure you've spent a lot of time on your pricing structure.
Today, I was reminded that I only have one CPU per server. I was thinking about upgrading to get 2 cores but alas, I would have to pay $44 /mo, so that is a huge increase in cost for me.
I can't possibly say what a more fair pricing structure would be, but if it was e.g. $6 base +$3 extra for each increment, the Vultr server sizes $5 (1GB), $10 (2GB), $20 (4GB) and $40 (8GB) plans would be marked up to $11, $19, $32, $55
Besides, it seems like you tried to level out the pricing differences between DO and Vultr, but why? Following that logic, you should match DO and Vultr pricing to the highest priced alternative, but (luckily) you didn't (afaik).
I hope you will consider my feedback as well as all your other customers casting a vote for more fair, logical and transparent pricing.
AdminCloudways (Admin, Cloudways) commented
Two things to consider about Vultr (and in general all providers) pricing:
1) Server sizes
Vultr's $5 (1GB), $10 (2GB), $20 (4GB) and $40 (8GB) plans are marked up to $11, $23, $44, $84 per month
DO's $5 (512MB) , $10 (1GB), $20 (2GB) and $40 (4GB) plans are marked up to $7, $17, $34, $70 per month
We compute the server size, when calculating our pricing. Why?. As (unlike other competitors) support is a big part of our service, bigger servers generally mean bigger/more sites and so, potentially more support.
In this sense, and as per Brendyn last comment, you need to compare 1GB Vultr server with the 1GB DO server (so $11 to $17, +$6 and +$7 on top of infrastructure price, which is quite consistent).
We do not get the same deals from all providers, so Cloudways final price may differ slightly between them.
In short, Cloudways server prices are a function of the server size (each size has a specific and consistent % mark up over infrastructure price) and infrastructure costs for Cloudways (that depends on the deal we get from each provider).
Hope that makes sense.
Brendyn Montgomery commented
The problem is not wanting something for free or comparing to other services like Serverpilot it's that it's inconsistent between hosting providers within the Cloudways system.
Vultr's $5, $10, $20 and $40 plans are marked up to $11, $23, $44, $84 per month
DO's $5, $10, $20 and $40 plans are marked up to $7, $17, $34, $70 per month
that's $4, $4, $10 and $14 more per month for those different pricing tiers.
It's the inconsistency of it that feels like gouging a little bit.
They should at least stay competitive. If some of the VULTR servers are more than $10 less than the Cloudways version of it, they might consider at least competing with ServerPilot. As it is, ServerPilot offers very similar help in managing a VPS for $10/month/server.
Mosies Garcia commented
The $20 Vultr Offer was initially at $30 in CloudWays, then they took it to $34 and now to $40.
Really, CloudWays? If Vultr increases their bang per buck offers, it is to become more competitive and reward its customers, not for you to earn some extra money.
CloudWays knew that they're overpricing vultr plans, so they've closed the comments on that blog post.
Fauzi Rakhmat commented
Comments for this thread are now closed.
What do you think?
w.v. pelyn Palarao commented
They have to earn to. You want to pay only the server then do to vultr itself. You sound like you are using a service and now begging for it to be free of charge. Use serverpilot if you can't afford CW.
@Fauzi Rakhmat many don't know about Vultr so there won't be much of issue for DO. Anyway adding sandboxed 2.5$ plan is a right and good thing for the customers.
@arif Hope they'll react to our feedback and change that insane pricing of theirs
First of all, there's no restriction like a user should only have one 2.5$ plan. I have a Vultr account, and I'm running 2 of them right now. Most Probably will shift to Vultr if there's no change in CW
$2.5 plan is limited per account since all of Vultr account of CW is under same account it is not available. (Probably.)
Fauzi Rakhmat commented
Adding $2.5 plan will likely kill DO 512mb plan. So CW doesn't support it.
Hm, about pricing. It seems hard to believe CW will change it :D
I will go for other managed vps, but there's no luck. Only cloudways that seems legit.
If there is one, tell me.
Ikvox Hosting commented
It's time we move to another managed vps, if cloudways won't fix this.