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  1. #1

    New Reseller who is not being given access to reseller directory

    Hi guys,
    whilst i have been in business for myself for almost 10 years, am relatively knowledgable in IT, i have not delved into this area of IT before.

    Personal health issues are such that, one has decided to alter his business interests to those of a less physically demanding nature, so i have lashed out and set up a reseller business in Web Hosting.

    I did some research in Australian on reseller packages and eventually signed up as a reseller with a particularly well known company.

    I have always had reservations about their packages, however, i believe (and i hope its not a naive belief) that many of the issues others have had with this company relate more to language and cultural differences with help desk staff than lack of transparency and "intentional shady dealings".

    a couple of issues i have currently for which im not recieving satisfactory answers are:
    1. no access to my own reseller directory on their server so that i may customize my reseller front end without hours of css coding and linking images to another server somewhere else
    2. their accounting spreadsheet inside the administrator panel contains calculations errors that show incorrect reseller profits which are consistently in their favour.

    For a Australian domain name.

    buy price $10.00, minimum sell price $10.31, Actual sale price $15.00, reseller profit $4.55.

    How on earth do they get $15.00-$10.31=$4.55???

    Here's another

    Basic Web Hosting

    buy price $44.00, minimum sell price $45.36, actual sale price $58.97, reseller profit $13.20

    Since when does $58.97-$45.36=$13.20???

    Is there something im missing???

  2. #2
    Join Date
    Jan 2003
    Looks like they are adding the credit card transaction fees
    which is perfectly acceptable and is probably spelled out in their TOS somewhere
    Lowest Host/Empire Technology LLC
    Offering Quality Shared, Reseller, VPS servers, and Dedicated Servers
    24x7 Tech Support
    XEN Servers Now - Budget XEN VPS /

  3. #3
    they do add transactions fees, that's what the minimum sell price is for!

    Here is the answer they gave me on my query regarding the accounting...

    Hello Adam,
    Here is the actual formula for the calculation:

    mp=minimum price
    cc=credit card fee
    by=buy price

    We want to find the minimum price for profit = 0 so,

    bp = 100
    cc = 0.03 (3%)
    103.09 = 100/(1-0.03)

    The reasoning behind this is that any bank will simply subtract their percentage, so in this example...

    103.09*0.03 = 3.09 (after rounding).


    I still cannot figure how this accounts for the error in the profit column. If i set my own price the profit column numbers change based on my price change. This must mean they are controlled by figures i enter into the sell price column. However, it still is incorrectly calculating the profit. I must be really barking up the wrong tree here as this simply does not make any flaming sense to me!!!

    Shouldnt the profit calculation simply subtract the minimum buy price from the sell price??? I think they are trying to tell me i need to know the minimum price for profit...however why on earth do i want to know that? If the column is labelled profit shouldnt it display actual profit???

  4. #4
    Join Date
    Jan 2003
    credit card fees are % per transaction + .xx per transaction
    so it would be something like

    3% + .30 = XX

    they are going to get charged on the full amount and are passing the fees down.

    they could just set the it before but its probably done for tax or accounting reasons.
    Lowest Host/Empire Technology LLC
    Offering Quality Shared, Reseller, VPS servers, and Dedicated Servers
    24x7 Tech Support
    XEN Servers Now - Budget XEN VPS /

  5. #5
    ah, so thats why the profit column is updating when i change sell price.

    i am still confused about the calculation though...if we use an actual example from my panel as shown in earlier post
    bp = $44
    sp = $58.97
    mp = $45.36 (includes BP + credit card fees)

    what should the profit be??

  6. #6
    oh i forgot one other query...
    why is sp (sell price) not included in the formula???

    This seems awful strange to me

  7. #7
    Join Date
    Jan 2003
    13.62 with their example
    but that was just and example from there support tech

    CC fees can vary from card to card & country to country for a merchant.

    its actually a better deal for you as most would just tack on the cc fees up front at a highest discount rate they are charged. they seem to be taking it out as you go.

    Just get a real merchant account and resell you own stuff and you will understand.
    Lowest Host/Empire Technology LLC
    Offering Quality Shared, Reseller, VPS servers, and Dedicated Servers
    24x7 Tech Support
    XEN Servers Now - Budget XEN VPS /

  8. #8
    13.62...thats interesting because the reseller panel says profit = $13.20. You see what i mean by its always making an error in their favour (ie lower profit that what its supposed to be)

    I'll add an image attachment of the entire products page with all in information on it.
    Attached Thumbnails Attached Thumbnails reseller panel accounting spreadsheet.png  

  9. #9
    ok i have worked out what they are doing...if you take your calculation of 13.65 and divide it by 13.20 (profit shown in the spreadsheet attached) it comes to 1.031. This equates to a double charge on the credit card fee.

    The mp, according to the admin control panel is buy price + credit card fees (equals 1.03 * buy price).

    In addition to this they are also charging me a hidden and unexplained second fee of 1.031 * buy price in calculating the profit. (it is not a credit card fee as this has already been factored into the equation in the mp price)

    Im sure this is a mistake and they are double charging the credit card fee.

  10. #10
    Join Date
    Jan 2003
    CC FEES 58.97 x .03 = 1.77
    SALE Price 58.97 - 44.00 - 1.77 = 13.20

    CC FEES 100.52 x .03 = 3.02
    SALE PRICE 100.52 - 75 - 3.02 = 22.5

    I do not see any thing wrong with the math
    Lowest Host/Empire Technology LLC
    Offering Quality Shared, Reseller, VPS servers, and Dedicated Servers
    24x7 Tech Support
    XEN Servers Now - Budget XEN VPS /

  11. #11
    i think im starting to understand...

    so i have been in fact stuffing it up by trying to calculate the difference between sell price and minimum buy price as the profit...and if im understanding correctly now, this is because the credit card fee charged is a dynamic value (ie increases or decreases depending on the sale price).

    Funny thing this reminds me of another situation i faced many years ago. I friend of mine had a Thruster Ultralight that he installed a larger engine on the front of. Since the engine was much larger and heavier than the original, it changed the centre of gravity of the aircraft. In order to rectify the issue we have to shorten the front of the aircraft where the engine was mounted. We figured that a simply one of centre of gravity calculation (made by sitting each of the 3 wheels of the aircraft on a set of scales and performing a simple calculation) would suffice in determining the new distance between aerodynamic centre of the wing and the middle of the engine. Unfortunately, each time we shortened the fuselage, the c of g was incorrect and we could not figure out what on earth was going on...that is until someone with more experience in these things informed us of the following rule (and i paraphrase it)
    as you move weight around on the aircraft, and when that weight is not directly located on the c of g...then the aerodynamic c of g changes dynamically with the movement of that weight.

    This is the same principle as calculating the credit card transaction fee.

    I understand now. Thanks so much for your help.

    kind regards

  12. #12
    Just a quick finish to this...if they had of used the SP instead of the bp in the formula it would have made more bloody sense. Its no wonder i got confused!

  13. #13
    Join Date
    Jan 2003
    your welcome I hope its clear as mud now
    Lowest Host/Empire Technology LLC
    Offering Quality Shared, Reseller, VPS servers, and Dedicated Servers
    24x7 Tech Support
    XEN Servers Now - Budget XEN VPS /

  14. #14
    even in the fog of war i reckon its all ok now

    well cept for the other part of my original question...

    what about the about me page???

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