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Thread: reseller %

  1. #1

    reseller %

    assuming I setup site do processing, do support for unmanaged dedicated servers etc, what percentage should I take as a reseller.

  2. #2
    Join Date
    Sep 2002
    the netherlands
    whatever you think clients would give based on the services you offer. at least, that's my point of view.

  3. #3
    Join Date
    Aug 2002
    Originally posted by skoop
    whatever you think clients would give based on the services you offer. at least, that's my point of view.
    That's about the only answer that makes any sense, because no one can tell you how much your time is worth or how much the service you plan to provide is worth to your clients, except you.

    You can use a pricing model that is basically 'cost-plus' where you add a percentage that you are happy with.

    If you plan to provide a quality service, then you might want to think in terms of the perceived value of your service. This has absolutely nothing to do with any percentage.

    A stupid example is T-shirts. They only cost a few cents to make and can be bought for a few dollars. Big fashion houses also sell t-shirts that might cost slightly more to manufacture, and might use slightly better quality cotton, but they sell for hundreds of dollars because the perceived value makes them worth that amount of money. You can be sure that they aren't using any form of cost-plus accounting.

    It depends on your market. The quality of the servers, and the quality of the company providing the infrastructure is important, but after that you need to decide what impression you give your clients and how much they think your service is worth. Why add a percentage if a client will pay top-dollar for what they perceive to be a better service.

    Don't get dragged down into attempting to compete on price. There are plenty of companies who do that and there can't ever be a winner. Differentiate yourself enough and you get closer to naming your own price - a price that doesn't give a damn what the everybody else is charging.

  4. #4

    assess your worth

    come up with a realistic hourly rate that you think you are worth and try and align that with the time involved to equate the sort of percentage you should be earning / charging.

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