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