ResellPortal / Guides
How to Price Reseller Services
Pricing reseller services correctly is the single biggest lever for profitability. Set prices too low and margins disappear; set prices too high and customers churn. The right approach combines competitor benchmarking, value-based pricing, and tiered packaging.
Step 1: Calculate your wholesale cost per customer
Add up the platform fee divided by expected customer count plus per-customer wholesale charges. This is your true cost.
Step 2: Research competitor retail prices
Look at what 3-5 direct competitors charge for the same product. Most reseller pricing should land within 10% of the median competitor.
Step 3: Set retail price at 3x to 10x wholesale
Standard SaaS markup. Higher value products (AI suites, full hosting) can take higher markups; commodity products (domains) need tighter margins.
Step 4: Build three tiers (starter, business, pro)
Three-tier pricing increases revenue per customer because most buyers pick the middle tier. Even if no one buys "pro", its existence anchors the value of "business".
Step 5: Offer annual discounts to lock in revenue
A 15-20% discount on annual plans typically converts 30% of customers to annual, reducing churn and improving cash flow.
Step 6: Test and adjust pricing quarterly
Track conversion rate, churn, and lifetime value. If conversions are high but margin is low, raise prices. If conversions are low, lower or restructure tiers.
