What Should I Price My Products?

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What Should I Set My Prices At?

A Reseller has a buy rate based on what level of Reseller he is. A Pro Reseller's buy rate will be less than a Basic Reseller's buy rate. These buy rates are confidential and only disclosed to the Reseller after he has become a Reseller. You have the ability to set your sales price to just about any price above your buy rate. However, if not priced competitively, you won't sell as much product.

You can price your products individually, or apply a markup on the entire product line based on a percentage or a fixed price increase.

If you are a web designer who will be steering a limited amount of his business customers towards domain purchases and web hosting, your strategy will most likely be based on having the luxury of charging the premium price of $24.95 per year for domain registration and $19.95 a month for shared hosting - earning a 300%-500% margin.

However if your strategy is to be a volume reseller, you will need to charge closer to $9.95 per year for .com registration, and closer to $5 per month for shared hosting - with the goal of selling 1000% more customers, while living with closer to 15%-20% margins across the board on all of your products. Generally these will be long time repeat customers.

Then there's a couple modified strategies, like getting customers in the door with deeply discounted prices on the lower end products - and then charge higher margins on the complimentary add-ons (like Private Registration or SSL Certificates) and fuller featured hosting. Others use the strategy of deeply discounting for the initial term, and then increasing the prices for renewals.

It is really up to you to decide how you want to proceed with pricing, and make intelligent adjustments that best fits your situation.