Partners: Looking for pricing guidance? Consider multiple factors…
Reseller partners often ask me for guidance on how they should price Intermedia’s services. For partners selling under Intermedia’s private label program, they’re able to set any price they want. That flexibility is great, but sometimes leaves partners wondering exactly how to approach the tricky business of setting prices.
Consider these factors when setting service prices
There are a lot of factors that go into figuring out what price works for your business. Below are some things to consider:
- Competition – If you’re selling services that are offered by many different providers, or perhaps just one other provider that’s dominant in the space, that may create a reference point in the market. Selling above this price means you’ll need to add additional value to justify the higher price point.
- Regional characteristics – Are there dynamics at play in your market that might influence the pricing of services? If your area is going through a boom (or a bust), this will likely have an impact on your pricing strategies.
- Business objective – Are you trying to drive growth or maximize margin? If growth is your objective, you might start on the lower side of the pricing scale. Lower prices can help speed up the decision-making process and create shorter sales cycles, which can lead to faster growth. Depending on your business, though, it may be harder to raise prices down the road, so you might want to take that into consideration.
- Your support levels – As an MSP or VAR, you’re likely bundling support together with the services you provide (and, if you’re not, you might want to consider it). The type of support you offer may vary and your pricing should reflect that. Are you offering 24×7 support? If not, that’s high-value service for which you can charge a premium. Do you offer support for end users? Do you have a stated SLA for problem resolution? Each of these will have an impact on your pricing approach.
- Added professional and managed services – If you are offering ongoing training, management, and business analysis, that’s additional value you are including with your service and it can help drive more revenue as a result.
Also consider differentiation
Another factor to consider is the level of differentiation in the service. The feature set, as well as the value you add with support and professional services, can have an impact on the perceived level of differentiation in the market. Differentiation is important, especially in markets with a lot of competition, and can have a big impact on your pricing.
All of Intermedia’s 30+ cloud services give partners the ability to add value and differentiated services to their offerings, which helps partners set higher prices and drive additional revenue. SecuriSync®, Intermedia’s backup and file sharing service, also offers a highly differentiated feature set – comprehensive file sync and share, mobility, and real-time backup and restore services. This 2-in-1 feature set lets partners charge more on a per-seat basis than with competitive offerings, plus it lets them streamline the number of vendors they have to support to provide the same set of services to their customers.
Webinar: Learn more about generating $100k with SecuriSync
Join us on Tuesday, September 13th at 2 p.m. EDT/11 a.m. PDT to learn how partners can price and package SecuriSync®, as well as how partners can potentially generate $100K in annual revenue just by selling 50 new seats of SecuriSync every month*. You can reserve your spot now. We hope to see you there.
*Potential annual revenue based on compounded monthly recurring revenue from selling 50 new SecuriSync unlimited seats added each month over the course of a year.
SecuriSync is either a trademark or registered trademark of Intermedia.net, Inc. in the United States and/or other countries.