It's part of our nature to question a deal we deem too good to be true with instinct urging us to exercise caution during the purchase. "You get what you pay for" is the reality that consumers are instructed to consider upon discovering that hidden gem in the market, however paying such a low price is often too tempting to resist.
The problem with low prices is that there must always be a reason for a company being able to offer this incredible discount and customers will always worry if the product has suffered as a result. Web hosting is no different from any other product in this sense, the price scale runs from minute to excessive on a range of offerings which differ as much as the price.
The question most users will face when contemplating a cheap package is what kind of service they will receive for their money. Well firstly you need to analyse it like you would any other market. There are a huge variety of companies looking to capture your services, and with such fierce competition each will have its own ways of securing you as a customer. Some may offer more resources and superior capabilities whereas some will lower their prices to beat their competitors to the sale.
If the low-priced package possesses the specifications to meet your needs then there is no need to pay more. If, on the other hand, your requirements are not matched, then keep searching as there will most-likely be a similarly priced solution which does offer you whatever you require, due to the competition.
While price may be the over-riding factor in a decision, there may however, be some deterrents in the package that you'll need to look out for. One thing to consider is that cheaper packages will often entail utilizing a shared server rather than having one dedicated to you. This means that there will be multiple sites using the same server, which brings disadvantages when it comes to high levels of traffic, customizing the server and suffering from interferences from other users.
Continuing to play devil's advocate here, a further issue may be the quality of service. Now, that is not to say that all cheap hosting packages provide a bad service, more that the low costs may lead to less staff and shorter working hours, possibly leading to a lack of availability should something go wrong. 24/7 customer helplines are an attractive attribute because, let's be honest, if something goes wrong it's not going to be at a convenient time, it's going to be midnight on a public holiday when only the best customer service packages will be open to help you.
Evidently the great attraction to cheap web hosting packages is the price, though keep in mind that nagging reality that you get what you pay for. Somewhere there will have been corners cut in order to offer such a low price, whether its performance, service or security. If you want the best solutions you'll have to pay the big bucks for them, but if you're looking for a basic package that will serve its purpose of saving you money on a monthly basis, then by all means opt for the cheapest web hosting solution you can find.