You can very well find even cheaper offers on the net if you search more. But remember that a web hosting company can still make bucks by offering dirt cheap offers by overloading the accounts on a low end server in a lesser known data center. This translates to slower loading of websites and downtimes. If a web hosting company has to provide powerfull servers with load balancing, premium bandwidth, 24x7 customer support, they have to pay for it and it will be reflected in the end user's hosting plan prices. This will mean 100% peace of mind when you opt for a reliable web hosting company at a higher price. So the main things you've to consider before choosing a web hosting company are...
Check out the server configuration (Dual Xeon 2.4+ w/ 1 GB RAM is average nowadays), Data Center (ThePlanet, GNAX, NAC, etc., are great), page loading time on your connection, customer support response time, etc.
Good luck !