Knowledgebase

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 -

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 -

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).

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 -

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 -

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.