eFolder is one of the top vendors when it comes to channel friendly backups, file sync, email security, and business continuity solutions. When it comes to pricing the various packages that they offer, most of their channel partners are always concerned about how they can go about the process the right away. In simple terms, they wonder how to price their products to earn profits while keeping their clients. By and large, eFolder understands this issue, and that’s why they unveiled Product Resale and Standalone Managed packages. But before we look at the impact of the two eFolder Pricing approaches, it’s important to understand their meanings.
Product Resale refers to an IT pricing service that allows the partners to set a markup price for the product offered. However, the package lacks administration, and thus does not come with deployment and configuration options. Standalone Managed Pricing, on the other hand, is a pricing package that comes with a price markup as well as an administration option for deployment and configuration.
According to most partners and clients, Product Resale is straightforward. This is because the partners subscribing to the model are offered the freedom to place a markup value to their offers, which is usually double the wholesale price. For instance, a partner who pays $8 as the wholesale price for Anchor per user can markup the value to $16 per user. Basically, the partner is able to make a 50% gross margin after resale. ‘
Product Resale is very effective in situations where the client has an in-house IT department in the company to handle the pricing management. Most of the clients are mid-size and large enterprises as the reselling is done via a multi-tenant pricing interface. In such a case, the partner is able to deploy the anchor privileges to the clients that they prefer.
Notwithstanding what Product Resale can do to the partners and clients, this eFolder Pricing is often overlooked especially by partners who lack an in-house IT department. The other reason is that there are more incentives offered in managed pricing packages than Product Resale. This is why Standalone Managed Pricing is popular. Partners under this package who pay $8 for Anchor per user gets to enjoy a managed value of $24. This translates to over 60% gross profit.
Generally, the two price packages that eFolder offers are easy to use. Both the partner and the client know what to expect. Put simply, there is utmost transparency in the two pricing packages, and thus great for the modern businesses.