Everybody is looking for the cheapest web hosting providers, but consider:

Server. A server costs at mimimum $1000 just to purchase the actual machine. And that's at the low end of the scale.

Bandwidth. Monthly bandwidth, in the range of 30,000 GB per month.

Hard Drive Space. Commonly maxes out at 1000 GB.

So, you are a hosting company, and you just paid $1000, not to mention monthly internet bandwidth costs as well as full time staff, 24/7. Let's say you charge the customer $5 a month