October 25, 2021
This is a price increase notification from KarachiHost.com Support Team. There is a planned price increase in lieu of some recent cPanel developments.
On 29th September 2021, cPanel sent an email to all hosting providers advising that they will be increasing their prices for the 3rd time and this will be taking place on 1st January 2022. This time around, the magnitude of the increase is between 15% – 35% depending on the hosting provider’s economics of scale with cPanel.
You may recall that we at Karachi Host had continually helped to defray these pricing increases at our own expenses. We have consolidated a list of cPanel’s past pricing increases, as well as the actions we had taken back then, so that you can observe the trend and approach that our company have been taking.
cPanel’s 1st Price Increase (1st January 2020)
When cPanel raised their prices for the first time on 1st January 2020, this was the increase that took a major hit on all hosting providers because the magnitude of the pricing increase was between 300-900% (not a typo). Many hosting providers went out of business, while some had to change their business model altogether. For example, some providers had all along been a budget provider but had to start charging premium prices, in many cases to unknowing customers. Some providers had to drastically change their operations as well, closing down multiple hosting locations and only offering one or a few hosting locations eventually. We had new customers contact us who mentioned that their hosting services were originally in Europe but they were forced to migrate to a US based location because their providers had to change their business model so abruptly.
We at Karachi Host were also affected by cPanel’s first pricing increase, but we took the morally correct approach of helping all of our clients to defray these pricing increases. For instance, all of our hosting prices remained the same for clients.
cPanel’s 2nd Price Increase (1st January 2021)
When cPanel raised their prices for the second time on 1st January 2021, this increase also affected quite a number of hosting providers, sending even more providers out of business and raising prices across the industry even further. However we at Karachi Host had adapted well to the pricing increase before and spent months streamlining our internal processes and buying down hardware where possible so as to reduce our costs. Doing so allowed us to NOT raise a single cent for all of our Hosting clients during cPanel’s 2nd pricing increase.
cPanel’s 3rd Pricing Increase (1st January 2022)
Unfortunately with cPanel’s 3rd pricing increase on 1st January 2022, and coupled with the facts that we heavily subsidized the first pricing increase in 2020 and completely subsidized the second pricing increase in 2021, it does reduce our arsenal to combat such pricing increase for our clients. Therefore we have no choice but to raise the prices of our Reseller Hosting Packages to take effect on 1st December 2021. However rest assured that as with before, we will not be passing on these pricing increases in full to our clients. At least half of cPanel’s pricing increase will be absorbed by us at the expense of our margins, and consequently, you will only see a very small increase in pricing. These pricing increases will take effect on your next bill on or after 1st December 2021.