When should I use promotions on my Reseller storefront?
As a reseller, you can increase your business by offering promotions and sales to your customers. Find our current promotions in the Sales & Promotions tab in the HostingDude Account LOGIN. Depending on your market and types of customers, discounts might or might not play a part in your pricing strategy.
A few things to consider when setting pricing for your Reseller storefront:
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Target Market — Set prices according to your type of customer. Are they smart and tech savvy? If so, they might already know about the competition. It might be wise to keep your pricing competitive with other registrars, so promotions might help. Are they beginners? You might need to educate them on domain names, or complete the registration on their behalf. In this scenario, a higher retail markup and fewer promotions can ensure you are paid for your time supporting customers.
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Time Versus Profit — Many resellers help customers register domain names and set up hosting services. With value-added services like those, it's important to consider the time you spend getting customers registered. For example, if you spend 2 hours helping a customer purchase product X for $6.00 and the buy rate is $5.00, your profit for the 2 hours of work is $1.00. If your time is worth $50 or 100 per hour, you might consider marking up your reseller products.
Case Study:
Sample Retail Price: $6.00
Sample Buy Rate: $5.00
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Total Profit Margin: $1.00 -
Control Pricing — One of the key features of our Reseller program is flexible pricing. But before you take time to change pricing, consider this:
- Do I need to offer discounts, promotions and sales?
You don't always have to offer the lowest rate every time. Even with a niche, it might not be necessary. Remember, the lower your retail, the lower your profit! - Do I need to offer multi-year discounts?
From a marketing perspective, customers register longer periods of time if they get extra savings.
For information on editing individual price points, see Updating Product Pricing for Your Reseller Storefront and Creating Sales on Your Reseller Storefront.
- Do I need to offer discounts, promotions and sales?
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Micro-Testing and Adaptability — One of the great joys in marketing is trying creative, edgy and even risqué campaigns, hoping at least one strategy will produce customers and sales. In this industry, micro-testing price points is a great strategy. As a reseller, you can apply sale pricing for limited periods of time to see how consumers respond. To aid in collecting this data, see Using Marketing Source Codes.
