When you sell different Products
and Services to your Customers and Sub-Resellers, you would always want to work out a pricing strategy such that the
Pricing of your Customers and Sub-Resellers decreases as they buy more Products
and Services
from you. The system allows you to set a Slab based Pricing structure that allows you to do this automatically. The
strategy is quite simple. You set certain Slabs of Total Receipt figures. The moment
a Customer or Sub-Reseller of yours crosses these Slabs, the Pricing for that client is reduced.
Lets discuss this in more detail.
Total Receipts
Every payment your Customers and Sub-Resellers make is a Receipt for
them. The
system maintains a figure for the total amount of money received from your Customers and
Sub-Resellers. You can easily see the Total Receipts of any of your Customers/Sub-Resellers in their respective
detailed view. It is
important to understand how the Total Receipts figure is calculated.
Click here to find out more about the calculation of Total Receipts for your
Customers and Sub-Resellers >>
Slabs
A Slab is nothing but an amount. This amount
represents the Total Receipts a client must cross in order to avail of the
Pricing of that Slab. Slabs are separately specified for your Customers and your
Sub-Resellers from your Pricing section. You can set Pricing Slabs for your
Customers/Sub-Resellers for every Product or set of Products that you are
selling.
Lets take the Domain
Registration Service as an example. Simply go to Settings -> Set Pricing, Plans
& Promos within your Control Panel and click on the Domain
Registration button/link. On the next page, you will see a
table as follows -
|
Sub-Reseller
Slabs for Domain Registration Service |
|
|
Customer
Slabs for Domain Registration Service |
|
You can use the table above to define your Slab
values. These Slab values depict the levels of Pricing you wish to establish
across your Product. Let us understand this in greater detail. Suppose I am
selling a Product - say Product A. Lets define my business model below -
-
I want to sell Product A at USD 20 to Customers,
and USD 15 to Sub-Resellers.
-
I want to offer Product A at USD 18 to Customers who have done at least USD 500
worth of business with me or have purchased at least 10
Hosting (Web
Hosting [Linux and Windows] Orders + Email Hosting Orders)
Orders from me.
-
I want to offer Product A at USD 12 to Sub-Resellers who have done at least USD
2500 worth of business with me or have purchased at least 100
Hosting (Web
Hosting [Linux and Windows] Orders + Email Hosting Orders)
Orders from me.
It can clearly be seen from above that
-
my Base Selling Price for Customers is USD 20
and for Sub-Resellers is USD 15.
-
I have a next Slab Price of USD 18 for my
Customers who have paid me at least USD 500 or have
purchased at least 10 Hosting (Web Hosting [Linux and Windows] Orders +
Email Hosting Orders) Orders
from me in their course of business.
-
I have a next Slab Price of USD 12 to
Sub-Resellers who have paid me at least USD 2500 or have
purchased at least 100 Hosting (Web Hosting [Linux and Windows] Orders +
Email Hosting Orders) Orders
from me in their course of business.
In order to achieve the above, I would need to
define Total Receipt Slabs for my Customers and Sub-Resellers. I can do this by
using the "Update" button in the above table after specifying the conditions for
the Slabs. Having added those two Slabs, the
final table would look like this -
|
Sub-Reseller
Slabs for Domain Registration Service |
|
|
|
|
Customer
Slabs for Domain Registration Service |
|
This however is not yet complete.
We have just specified a Slab of USD 500 for Customers and USD 2500 for
Sub-Resellers. We still need to specify the Selling Price for them. This is done
from the Specific Price section. Click on any Product link in order to set its Specific
Price.
Slab-wise per Product Pricing
Now let us take another example to understand how you can set Specific Pricing
for each Slab for each Product. For every Slab you specify for a set of
Products, there is a per-Product
Slab Pricing. This Pricing comes into effect for your Customers/Sub-Resellers
depending on which Slab they fall into.
Lets say you have the following Slabs setup
in your Pricing section for your Sub-Resellers for Domain Name Registration
Service(for the sake of this example we
assume that your Selling Currency is USD).
|
Sub-Reseller
Slabs for Domain Registration Service |
|
This basically represents that your Sub-Reseller
would fall in Slab 1 when his Total Receipts figure crosses USD 1000 or he has purchased at least 20 Hosting (Web Hosting [Linux and Windows] Orders +
Email Hosting Orders)
Orders, and then fall in
Slab 2 when his Total Receipts figure crosses USD 5000 or has
purchased at least 100 Hosting (Web Hosting [Linux and Windows] Orders +
Email Hosting Orders)
Orders, and finally he would fall in Slab
3 when his Total Receipts figure crosses USD 10000 or has
purchased at least 200 Hosting (Web Hosting [Linux and Windows] Orders +
Email Hosting Orders)
Orders.
For each of these Slabs now you can specify
Pricing for each of your Products. We will take up an example of three different
ways you can now use these Slabs. From the Pricing section, you can choose a
Product and set the Pricing for that Product.
In the Pricing page for that Product, you may see
a view such as the one below -
|
|
|
New Registration
(per year) |
|
Renewal
(per year) |
|
Transfer
(per year) |
|
Your Package Cost Price |
|
USD 9.0 |
|
USD 9.0 |
|
USD 9.0 |
|
|
|
Selling Price to Sub-Resellers |
|
Base Selling Price |
|
USD
|
|
USD
|
|
USD
|
|
Slab 1 (
Total Receipts >=USD 1000.00
OR Web Hosting Orders >= 20 )
|
|
USD
|
|
USD
|
|
USD
|
|
Slab 2 (
Total Receipts >=USD 5000.00
OR Web Hosting Orders >= 100 )
|
|
USD
|
|
USD
|
|
USD
|
|
Slab 3 (
Total Receipts >=USD 10000.00
OR Web Hosting Orders >= 200 )
|
|
USD
|
|
USD
|
|
USD
|
The Product above has three different
Prices, one
for a New Registration, another for per year Renewal and the third for a
Transfer. The first row shows your Cost Price for this Product. This is simply
as a reference to allow you to determine an appropriate Selling Price for this
Product. The next row allows for the input of your Base Selling Price. The Base
Selling Price for a Product is the Selling Price that a New Sub-Reseller of
yours will get. A Base Selling Price MUST be specified for ALL your Products. It
cannot contain a null value. In the above table as you can see, your Cost Price
for the Product is USD 9 and your Base Selling price to your Sub-Resellers is
USD 15. This means that a new Sub-Reseller of yours will buy this Product from
you at USD 15.
Having said this, let us inspect
the above table and understand what the values mean.
-
A fresh Sub-Reseller starting
off under you will receive a Purchase Price of USD 15 for the above Product.
-
When the Sub-Reseller
Receipts reach USD 1000 or the Sub-Reseller has purchased
20 Hosting Orders, his Purchase Price for this
Product will become USD 12. Note that the USD 1000 in Total Receipts figure
refers to TOTAL Receipts made. These Receipts may not necessarily be for this
Product only. The USD 1000 target maybe met by Sub-Reseller by buying other
Products and Services.
-
When the Sub-Reseller
Receipts reach USD 5000 or the Sub-Reseller has purchased
100 Hosting Orders, his Purchase Price for this
Product will become USD 11, and then USD 10 when he reaches a Total Receipts
figure of USD 10000 or has purchased 200 Hosting Orders.
We need to clarify some more aspects here
-
Each next Slab must have a lower
Pricing than
the previous Slab.
-
Each Slab must have all boxes filled or none
of them filled. A Slab can be completely empty, in which case it will be
ignored for that Product (as we will see later).
The following values are therefore invalid
Let us discuss one more example here -
|
|
|
New Registration
(per year) |
|
Renewal
(per year) |
|
Transfer
(per year) |
|
Your Cost Price |
|
USD 9.0 |
|
USD 9.0 |
|
USD 9.0 |
|
|
|
Selling Price to Sub-Resellers |
|
Base Selling Price |
|
USD
|
|
USD
|
|
USD
|
|
Slab 1 (
Total Receipts >=USD 1000.00
OR Web Hosting Orders >= 20 )
|
|
USD
|
|
USD
|
|
USD
|
|
Slab 2 (
Total Receipts >=USD 5000.00
OR Web Hosting Orders >= 100 )
|
|
USD
|
|
USD
|
|
USD
|
|
Slab 3 (
Total Receipts >=USD 10000.00
OR Web Hosting Orders >= 200 )
|
|
USD
|
|
USD
|
|
USD
|
In the above table, the Slab 2 values are
completely empty. This means that this Slab is ignored in the Pricing
calculation. Lets inspect what the above values mean -
-
A fresh Sub-Reseller starting off under you
will receive a Purchase Price of USD 15 for the above Product
-
When the Sub-Reseller
Receipts reach USD 1000 or the Sub-Reseller has purchased
20 Hosting Orders, his Purchase Price for this
Product will become USD 12.
-
When the Sub-Reseller
Receipts reach USD 10000 or the Sub-Reseller has purchased
200 Hosting Orders, his Purchase Price for this
Product will become USD 10.
As you can see above, the table simply works as
if Slab 2 did not exist for this Product. The question then that arises is why
was Slab 2 created at all. The answer is quite simple. Slabs are common across
ALL your Products. You may choose to use some of the Slabs in some of the
Products depending on your business model.