In the rapidly evolving world of web hosting, cPanel has established itself as a frontrunner alongside Plesk and DirectAdmin, becoming a go-to choice for many hosting providers the globe. This article delves into an intriguing phenomenon observed from 2019 to 2024, where, despite a steadily increasing subscriber base, cPanel’s package prices witnessed hikes reaching up to 50%. Such a significant price adjustment raises questions and curiosity about the factors driving these changes in a market where competition and technological advancements are constant.
cPanel price adjustments: a five-year perspective
Plan | 06.2019 – 12.2020 | 01.2021 – 11.2021 | 12.2021 – 11.2022 | 12.2022 – 11.2023 | 12.2023 – 02.2024 |
Solo® | $15,00 | $15,00 | $15,99 | $15,99 | $17,49 |
Admin | $20,00 | $22,00 | $24,99 | $27,99 | $29,99 |
Pro | $30,00 | $32,25 | $35,99 | $39,99 | $42,99 |
Premier | $45,00 | $48,50 | $53,99 | $59,99 | $60,99 |
The notable increase in cPanel package prices between 2019 and 2024 presents a fascinating case study in the dynamics of market demand and strategic pricing. It is estimated from various sources that during this period, there was a steady increase in the number of active subscriptions for individual cPanel software packages. Unfortunately, the company does not officially disclose the exact number of active subscriptions; however, many sources speak of year-over-year increases of 12.5%, 11.11%, 10%, and 9.09%, respectively. Therefore, it can be assumed that with a constant number of active clients, there are also steady revenue increases.
And indeed, one can believe this by looking at the interest in the service by both small agencies and large hosting companies offering shared services or VPS servers with pre-installed packages. It also reinforces the way licenses are billed – which are strictly dependent on the number of active users per hosting account.
Comparing the aforementioned growth indicators with the percentage increase in cPanel package prices – 16.6% for Solo, a striking 50% for Admin, 43.3% for Pro, and 35.5% for Premier over the course of these 5 years — reveals a discrepancy suggests that the price adjustments were influenced by more than just the operational costs and developmental investments. With such a billing model, cPanel’s financial situation is certainly in a much better position than its sibling Plesk Panel. So, what influences such an approach in pricing policy? In my opinion, it is the desire to maximize revenue and profits in light of a subscriber base that may not be growing as quickly as before, and although the company still reports positive financial results, by the end of each year, they are not as high as in previous years.
Could it be a fear of total stagnation? It seems so to me, especially looking at this disparity of price increases versus stabilization of financial issues. The financial results for Q1 and Q2.2024 and their comparison with previous years should give an answer as to whether we can expect further increases in subscription packages this year as well.
Critical response from customers
The small clients, representing hobby projects or very small marketing agencies using cPanel on their servers, seem to be the most affected by the price increases. It is precisely this group of clients that has not remained indifferent to the changes in prices.
The reaction has been markedly critical, especially in light of the most recent price hike in December 2023. This period of adjustment saw not only a continuation of the trend in rising costs but also a moment when the discontent among the user base became particularly vocal. Many long-standing clients, accustomed to the platform’s reliability and service quality, found themselves re-evaluating the cost-benefit ratio of their cPanel subscriptions.
Submission
Over the past few years, prices for cPanel services have shown a steady upward trend, reflecting the general trend of rising costs in the hosting industry. Each year has brought successive increases, although in some periods prices have remained stable, reflecting a varied approach to pricing. Particularly significant was the increase in the price of the Admin package, which recorded the largest percentage increase in the period under review, reaching about 50% over the initial price. This change underscores the challenges faced by users of this package, in the context of growing expenses for hosting services.