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Thread: Volume VPS discounts?
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09-01-2011, 10:34 AM #1Web Hosting Evangelist
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Volume VPS discounts?
Hello,
I was recently asked by a current client about volume discounts for VPS hosting.
It occurred to me that I dont have any such strategy for clients who are interested in reselling or buying bulk numbers of VPS servers.
I was hoping people on here could give me some suggestions based on what they find works best for them (i.e. 10% off after 20 VPS').
Since the margin is pretty low already for me, I didn't want to rush to a number without getting a good idea of the economics and (hopefully) a formula thats generally accepted within the community.
Thanks!Stack Star | Shift8 Web
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09-01-2011, 10:45 AM #2
You can use Knownhost page as a guide ( http://www.knownhost.com/vip-program.html ).
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09-01-2011, 10:54 AM #3Web Hosting Master
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So far I have only had 1 client who requested bulk pricing, and it was not so hard to work out but it is a how long is a piece of string question unless you know the types of VPS they want, for the sake of simplicity lets say
package A is:
256 RAM
10 GB HDD
costs $10
package B is:
512 RAM
20 GB HDD
Costs $18
Package C is:
1024 RAM
40GB HDD
Cost is $32
Lets say your customer wants 4 x Package A, the usual cost of this would be $40 (4 x $10).
4 x package A actualy fits the exact same numbers resources wise as Package C (4 x 256 RAM + 4 x 10GB HDD) so you could think along the lines of 'splitting a larger package up and applying the natural discount.
e.g. Package C / 4 = x 4 256 RAM & 4 x 10 GB HDD and $32 / 4 = $8 p/month so they get a 20% saving on the bulk buy
Its a fairly simple method and easy to put in to a translate table in excel, I would suggest a minimum of 3 servers before ANY discount applies and obviously this scales up if they wanted 8 x 256 MB VPS and your 2048 MB package usually costs $60 then they are getting a 25% discount or $7.50 per server
Obviously its not quite as cut and dry and amount of VM on a node and CPU needs to be taken in to account but thats the general idea of how I did it, hope that helps.█ -> INCEPTION HOSTING LIMITED Since 2010!
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09-01-2011, 10:57 AM #4Web Hosting Evangelist
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thanks a lot for this! this helps immensely actually.
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