Reseller rate is a bit unfair

Discussion in 'Ecommerce Forum' started by sgroves, May 11, 2019.

  1. sgroves

    sgroves UKBF Newcomer Free Member

    2 0
    Hello. I sell for a well known software company, I get a 50% reseller discount, but the problem is they often have special offers where general customers get a bigger discount up to 75% , also if you download their software and uninstall without buying, they will offer you a 50% discount.

    I know they have the right to do this but I have any right to complain about it? And if so, how should I approach them with this complaint?
     
    Posted: May 11, 2019 By: sgroves Member since: Jun 30, 2015
    #1
  2. Darren_Ssc

    Darren_Ssc UKBF Regular Free Member

    224 39
    Maybe emphasise the value you are adding by bringing in customers who are not simply signing up with the biggest discount?

    It's tough because the general mentality is to get new customers regardless of whether the are of any value or not - you can't fight the tide in this regard. All you can do is ask for a better deal or take your efforts elsewhere.

    On a positive note, as someone who's worked in online marketing for over ten years, there will always be a better alternative and, sometimes, you only find it after realising your current partner taking the p***.
     
    Posted: May 11, 2019 By: Darren_Ssc Member since: Mar 1, 2019
    #2
  3. Mr D

    Mr D UKBF Legend Free Member

    13,721 1,505
    You are competing with a supplier who is also retailing. Move on, find someone not competing so much.
    Get some software where as a reseller you pay far less than retail customers.
     
    Posted: May 11, 2019 By: Mr D Member since: Feb 12, 2017
    #3
  4. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    3,930 780
    Are you earnings justified for the amount of hours you are putting in?

    If not, negotiate with your employer or look for something better.
     
    Posted: May 12, 2019 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #4
  5. WebshopMechanic

    WebshopMechanic UKBF Regular Full Member

    300 120
    In my opinion you can't really complain about it because you are simply an affiliate of their software.

    The reason why they are giving you 50% discount (as an affiliate) is because they want you to sell to your own audience. They want you to deliver sales from niches that they don't operate in. You should not be in competition with them selling to the audience they already serve.

    They have their own sales strategy and are responsible for bringing orders to maintain growth in their business. The discounts they execute are strategic and probably allow them to hit their growth targets for that month.

    Sorry to say but I doubt affiliates like yourself deliver much in the way of revenue (maybe 10%), so they can't rely on you guys to grow their business. Your sales will also be a bit up and down. Affiliates are often a nice-to-have to bump up the revenue but not a necessity. They are also lower margin than a direct sale.

    Sorry, but that's just the way it is. Heavy discounts by software companies happens a lot. In my industry, Longtail Pro do this all the time.

    Like I said, your strategy should be to serve a new audience that they don't, not compete with theirs.

    For example, if they sell CRM software for small businesses then you should focus on a particular niche (like Personal Trainers) and then sell the product to them. The chances of a Personal Trainer knowing their software and visiting a website where they would find it, are slim (excuse the pun).

    It is your audience and that is where you will have most success!

    Be the go-to person for your audience and show them how to maximise results from the software. Add value. That is when they will buy from you rather than direct.
     
    Posted: May 12, 2019 By: WebshopMechanic Member since: Apr 27, 2017
    #5
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  6. MBE2017

    MBE2017 UKBF Enthusiast Free Member

    715 168
    As above, you can complain but it won’t achieve anything.
     
    Posted: May 12, 2019 By: MBE2017 Member since: Feb 16, 2017
    #6