Setting Up Reseller Pricing & Markups

Pricing is one of the most important decisions in your reseller business. Your Data Mammoth reseller account gives you wholesale access to hosting services, and you set your own retail prices for clients. This guide explains how to configure pricing, choose markup strategies, and optimize for profitability.

Understanding Wholesale vs. Retail Pricing

As a reseller, you operate with two price layers:

• Wholesale price — The discounted rate you pay Data Mammoth for each service.
• Retail price — The price your clients pay you. You set this in your reseller dashboard.
• Profit margin — The difference between retail and wholesale.

Example

With 50 clients on this plan, that is $500/month in recurring revenue.

Configuring Pricing in Your Dashboard

Log in to your reseller dashboard.

Navigate to Reseller Settings > Pricing or Product Configuration.

You will see a list of available services with wholesale prices.

For each service, set your retail price.

Pricing Options

Depending on your dashboard capabilities, you may be able to:

• Set fixed prices — Specify an exact retail price for each plan.
• Set percentage markup — Apply a percentage markup on top of the wholesale price automatically.
• Set tiered pricing — Different prices based on billing cycle (monthly, quarterly, annually).
• Create custom plans — Bundle services and add-ons into custom packages.

Markup Strategies

Percentage Markup

Apply a consistent percentage on top of wholesale prices:

Pros: Simple, consistent margins across all products. Cons: May not reflect market pricing for specific services.

Market-Based Pricing

Research what competitors charge and set prices accordingly:

Survey market rates for similar hosting services.

Price your services competitively within that range.

Differentiate with bundled services, support quality, or added features.

Pros: Competitive and market-aware. Cons: Requires research and regular updates.

Value-Based Pricing

Price based on the value you provide to your specific audience:

• Managed hosting — Charge a premium for including management and support.
• Specialized industries — Higher prices for niche markets (e.g., healthcare, legal).
• Bundled services — Combine hosting with web development, SEO, or marketing.

Pros: Highest potential margins. Cons: Requires delivering genuine additional value.

Billing Cycle Pricing

Offer discounts for longer billing commitments:

Longer billing cycles benefit you with:

• Predictable revenue.
• Reduced client churn.
• Upfront cash flow.

Add-On Pricing

Configure pricing for add-on services:

• Automated backups — Apply your markup to the backup service.
• Additional IP addresses — Set your price per IP.
• DDoS protection — Include in premium plans or sell separately.
• Extra storage — Price per additional storage block.
• Managed support — Charge for your time managing client servers.

Creating Service Bundles

Bundle multiple services into packages for simpler client decisions:

Example Bundles

Starter Package — $29/month

• VPS Basic plan
• Automated daily backups
• Email support

Business Package — $59/month

• VPS Standard plan
• Automated daily backups
• DDoS protection
• Priority email support

Enterprise Package — $129/month

• VPS Premium plan
• Automated hourly backups
• DDoS protection
• Additional IP address
• 24/7 managed support

Pricing Best Practices

Know your costs — Factor in not just wholesale prices but also your time for support and management.

Research the market — Understand what clients expect to pay for similar services.

Start simple — Begin with a few clearly differentiated plans and expand later.

Review regularly — Adjust pricing as your costs, market, and value proposition change.

Communicate value — Justify your prices by highlighting the support, expertise, and convenience you provide.

Offer upgrades — Make it easy for clients to move to higher plans as their needs grow.

What to Do Next

• Managing Your Reseller Clients — Onboard clients at your prices.
• Tracking Your Reseller Earnings — Monitor profitability.
• Setting Up Your Custom Branding — Present pricing professionally.
• Reseller Program Overview — Review all program features.