I’m not a hosting provider so I can’t give actual experience but I have been around various hosting forums for nearly a decade so I’d say I’ve got a reasonable grasp of what seems to happen.
It seems to me that selling any type of hosting can be difficult as it’s hard to have a unique selling point in a pretty saturated market. Everyone claims to have good uptime, fast support, great hardware etc. and it makes it hard to stand out, so this often leads to one easy thing that is nearly guaranteed to attract customers - undercutting the competition.
I don’t think undercutting is the best way in the long term as a lot of providers end up price hiking unsustainable packages down the line (and ruin some of the reputation they made early on when they offered plans that weren’t sustainable). Or deadpooling or offering shit service.
I would look at what other, longer term, providers are offering. See if any of it is unique (or at least less common) and see if you can tap into those areas while they are under saturated.
An example of this would be BuyVM offering free DirectAdmin, Blesta and Softaculous. Or Nexus bytes offering free IPV6 backup VPSs with purchase of their other products. You might not be able to offer everything - especially if you’re still early on in your companies journey - but you could decide on one area and take a chance.
For example, if you wanted to offer a free NAT backup VPS with every purchase of a paid VPS, would you be willing to pay for a server every month (and risk the loss if it didn’t work out) with the hope that it would be of interest to potential customers that they would be incentivised to choose you over the competition?
Could you roll the price of DA into other services you offer where the price wouldn’t be as noticeable to then offer it on cheaper products for free?
Do you have a special skill or some spare time to contribute to something to give back to the community that will also raise brand awareness?
I’m sure there are plenty of other examples but these were some that came to mind.
There’s always tradtional advertising via paid adverts or even just by posting on forums like this to raise brand awareness for free will help. I’m sure some providers will know more about this than I do and could chip in.
As I say, I’m no expert but I think any type of online business operates on similar principals. Hopefully this helps.
Edit: good god that was a long post. Apologies in advance.