Rule of Thumb?

[TaintedPearls]

Is there a general rule of thumb that hosts go by when setting the price of a hosting plan?

[Starcraftmazter]

Yes.

CONSIDER THE BLOODY FEES!!

Like paypal fees. And currency conversion fees.(groan).

[TJR Networks]

It depends. Good hosts work out how much it costs to provide their services and go from there but many new hosts just keep undercutting everyone else until they realise it does actually require effort to run a host and they close up shop. As with everything, you get what you pay for. :)