2020 Guide: How to Price Your ISP Packages for Maximum Profit in 2020

Getting your ISP package pricing right is crucial. Price too high and customers go to competitors. Price too low and you cannot cover your costs. Here is how to find the balance.

Know Your Costs First

Before setting any prices, calculate your actual cost per customer. Include bandwidth costs, equipment depreciation, staff salaries, rent, and maintenance. This is your floor — you cannot go below this.

Research Your Market

Check what competitors in your area charge. You do not have to match their prices, but you need to offer clear value for what you charge.

The 3-Tier Strategy

Most successful ISPs offer three packages:

• Basic: Affordable option for light users — your entry point
• Standard: Mid-range for most households — this should be your bestseller
• Premium: High-speed for power users and businesses — your highest margin

Use Your Billing Data

If you are using proper ISP billing software, you have data on which packages sell most, which have the highest churn, and which generate the most revenue. Use this data to adjust your pricing.

Consider Add-ons

Instead of just selling bandwidth, offer add-on services like static IPs, extra bandwidth bursts, or dedicated support. These increase your average revenue per customer without changing your base prices.

Review your pricing every quarter. Markets change, costs change, and your pricing should evolve with them.