I think most dedicated hosting often demands a setup fee of 50$+ or a 1 year commitment.
And even not taking in account the setup fee and the commitment, at 27$/month, you get a lot of power for your buck comparing to the cheapest dedicated server available at maybe something like 60$/month.
Cheapest dedicated box I could quickly find is at 59$/m, and even with a 2 years commitment you get "only" a 25% reduction which put you price at ~45$/m: