Another thing to consider when selling products through the channel is the pricing model.

1. Is your pricing stable? Know that frequent price changes are difficult for the channel. Bigger distributors and DMRs may only be able to adjust their systems twice a year.
   And once pricing is released to the channel, tens to hundreds of resellers will have it, and all their sales reps will have it – making price change management nearly impossible.
2. Is your pricing easy to explain? Remember, your reseller sales reps carry a portfolio of products. They will spend more time on products that have compelling value, and are easy to sell. Simplicity of pricing is a component of ‘easy to sell’.
3. Have you built “upsell” into your pricing? A product that has an entry-level price, with additions or services that can be sold later provide a reseller with a natural way to go back to their customer.

Selling through the channel is the most profitable when your product can easily move through. Keep the product streamlined. One way to do ensure that the product is streamlined is to simulate how the product will pass through the channel.

Start with how the reseller or distributor will order the product:

• Will they be stocking the product?
• How much will they order at once?
• Is there a time component to the product?

Review how it will be shipped:

• How is the product packaged?
• What information does the reseller or distributor need to have on the packaging?
• Will the product be drop-shipped to the end customer?

With each point, check to see if their systems can easily handle and pass the product through.