We need to change our pricing approach

Since the start of our business in January 2023, Lyd Hosting has adopted a financial strategy of deliberately favouring DayZ offers with competitive rates, in the hope of compensating with our other offers.

However, we have found that this approach has not produced the expected results, with unforeseen financial consequences. To illustrate these difficulties, we will use the month of May as an example.

This is the month that has been the most profitable for services, and it alone illustrates the impossibility for us to maintain the offers as they were conceived at the time of the commercial launch.

We had to make financial investments in May 2023, which increased our operating costs in order to increase our capacity to welcome new customers.

The host machine we now have to host our customers is the best on the market today, and the Ryzen 9 7950X3D processor is perfectly suited to hosting DayZ servers.

If we look at the situation in May 2023, we can see that operating costs (excluding capital expenditure) represent almost 41.67% of earnings. If we exclude exceptional gains (excluding DayZ), we reach 50%.

All this despite the fact that the month of May was a source of strong growth, leading to the filling of DayZ servers on our host machine beyond the limit of 12 servers per machine.

The target with this financial adjustment is to bring our costs in relation to earnings down to a bearable level, which will enable us to reduce the number of servers on the host machine.

With this new price scale, winnings will be reduced to a minimum of 430 euros gross, within the limit of 12 DayZ servers. This means that charges will represent at least 34.88% of profits.

Launch of a new offer

We have decided to abandon the 30-slot offer in favour of a new offer with an original approach, hosted on a dedicated infrastructure. The aim is to split the offerings to guarantee a minimum of profitability.

This new low-cost offering will be based on a host machine with the following specifications:
- AMD Ryzen™ 7 7700
- 64 GB DRR5
- NVMe 2 x 1 TB

The limit of DayZ servers on this machine will be set at 10 servers. This machine must provide "average" performance compared with our "High Performance" infrastructure, which starts at 40 slots.

The originality of this offer lies in its objective. To offset the cost of a DayZ server project that is just getting off the ground, the package will come with advanced support.

The aim of this advanced support is to provide you with genuine monitoring and almost daily assistance with the development of your server. This goes far beyond our role as a hosting provider.

Another aspect is the number of slots on offer. Although your server won't necessarily be able to accommodate that many players, we've decided to set the offer at a maximum of 80 slots.

Many projects start with a maximum of 10 slots. This can be psychologically repulsive for some players. We have therefore chosen this approach so as not to hinder the growth of your project.

Time for a conclusion

We are aware that this pricing change will be restrictive for some of our customers, but it is also restrictive for us. Please bear in mind that the ultimate aim is to reduce the number of servers per machine.

Existing customers will be switched to the new tariff schedule in July 2023. Everyone will be contacted individually so that we can discuss the changes and help them make the best possible choices.

If you have any questions, we will be happy to answer them. The best channel for this is our Discord server, where you can get a quick answer from us.

Thank you for your understanding and continued support.