I am currently in the process of starting up a web hosting company on my own dedicated server.

My plan is to sell hosting personally but also to have a reseller program where resellers can purchase my hosting packages (at a discount) and resell at any price they wish.

What would you say a typical discount price is? I am leaning towards 40% and of course this depends on what additional services I offer the reseller and how my pricing structure works but I thought I'd see what type of rates the average reseller is getting.

Thanks

The company I resell for is from 25 to 50% off. Andy

You really need to consider your base retail price before you can determine the proper discount rate. If your base price is in line with others for comparable service then a 40% to 50% discount is fair. If you have a real niche market that can demand a higher premium then it get to what the market will accept.

You also have to consider if you are charging them a premium to be a reseller.

There is my 2 cents.

That's pretty much in line with what I've experienced.

Thanks for reaffirming this. I'll probably go with a 40% discount rate.

I'm trying to price my regular rates at competitive prices so a 50% discount is making the margins just too small but at the same time I want to offer a fair price to my resellers. 40% seems like the answer.