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Forum Discussion
ReadyNAS Vault Reseller Program
What is up with the ReadyNAS Vault Reseller "pay-as-you-go" changes the last few months with premium pricing (over what is being marketed direct)?
Case in point...I have a client that uses 180GB of storage. It’s cheaper for them to buy direct at $799 for 250GB or $649 for 200GB. I don’t see the resale value when it would cost me (before any markup) $924 for just 180GB, $1,020 for 200GB, and $1,260 for 250GB.
$799 vs $1,260 for 250GB...not much of a deal there…especially for the reseller. Where is the incentive? That is a $461 premium to the reseller! Even at their actual used amount of 180GB, the $125 reseller premium over the direct advertised cost of $799 for 250GB makes this program unmarketable. Not only is the price more, a customer would get less data if they went with me, and I'd still make no profit besides time to setup/manage (which still doesn't offset the loss).
Until Netgear/Elephant Drive fixes this lopsided approach to data pricing, I have no choice than not to resale. Your own prices compete against me which ends up being a joke…no incentive to market the program…even with the pay as you go approach. Pay as you go also adds extra burden to the reseller and customer...one cannot budget for the year…and there is more paperwork to keep up on...monthly AP/AR.
I highly recommend you go back to the old reseller model…which made perfect sense...and please...be more competitive with your pricing and provide resellers an inventive to promote your service!
Case in point...I have a client that uses 180GB of storage. It’s cheaper for them to buy direct at $799 for 250GB or $649 for 200GB. I don’t see the resale value when it would cost me (before any markup) $924 for just 180GB, $1,020 for 200GB, and $1,260 for 250GB.
$799 vs $1,260 for 250GB...not much of a deal there…especially for the reseller. Where is the incentive? That is a $461 premium to the reseller! Even at their actual used amount of 180GB, the $125 reseller premium over the direct advertised cost of $799 for 250GB makes this program unmarketable. Not only is the price more, a customer would get less data if they went with me, and I'd still make no profit besides time to setup/manage (which still doesn't offset the loss).
Until Netgear/Elephant Drive fixes this lopsided approach to data pricing, I have no choice than not to resale. Your own prices compete against me which ends up being a joke…no incentive to market the program…even with the pay as you go approach. Pay as you go also adds extra burden to the reseller and customer...one cannot budget for the year…and there is more paperwork to keep up on...monthly AP/AR.
I highly recommend you go back to the old reseller model…which made perfect sense...and please...be more competitive with your pricing and provide resellers an inventive to promote your service!
4 Replies
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- Hi PDR. I work with resellers here at ElephantDrive. You have a lot of good points, so i'm going to take my time in getting back to you to formulate a good response. I just wanted you to know that we're listening and will respond soon.
- Most appreciated...thank you!
- One more note...our per MB cost should be less than customers…or at the very least match the cost of what is being advertised to them at a flat rate. Then that avoids potential negative amounts if they're able to purchase at flat rates vs our pay-as-you-go rates.
- Hi again PDR, and thanks for your patience,
Our reseller program is optimized for partners who sell service to multiple customers - really ideal for partners with 10 or more end users (but scaling for those that have hundreds or thousands). When you scale to, for example, have 2 TB of data backed up among all your users (that's just 8 accounts at 250 GB each) your average price per GB is already reduced and all additional GB are at a price of $0.20 per GB per month. This is a significant discount from the rates we offer on ElephantDrive and ReadyNAS Vault pricing.
Another point I'd like to make is that the relationship between the reseller and the customer is not unlike the relationship between a travel agent or stock broker with their customer. Yes, you can get your travel or stocks on your own, but you pay a premium for the quality of service that the agent or broker provides. So you can charge a higher fee, if you like, than we charge at ElephantDrive or ReadyNAS Vault.
The last thing I'd like to mention is that the vast majority of customers do not max out their accounts. So while they are paying the full price of the plan, you the reseller are only paying for what they use. When you combine the three major aspects I've mentioned of what make the reseller program valuable, I feel it becomes clear that our reseller program in its current form is a good one and provides great value both to you the reseller and to your customers.
Thanks so much for voicing your concerns. I hope I've addressed them. If you'd like to reach me personally, I can be found at aaron@elephantdrive.com or you can call me at 800.778.4055 ext. 128.
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