Resellers10 Oct 2018 21:20
The reason they only make 10% from resellers, is because the reseller wants to make 20%. (Making the 30% they retail at, in reality the end user price is the same) unfortunately, in this game, unless you’re right at the small end SME, most SME’s with more than a couple of sites have an IT reseller/installer who they use for both IT and coms.
What you’ve got to remember, is that they are never going to make a lot more than 30%, because they have to buy network from somebody (BT, Virgin, whoever) and the big boys are setting the retail End user pricing. (All be it, at the top end).
In the end, Toople are just another retailer of communications services, buying circuits from somebody, adding their margin and selling it on, be it to the end user or to another reseller (who also adds their margin)
Have a look around and see how many there are doing just this.
Even at 30% retail, they need a hell of a lot more customers a month to pull those losses back.
My business resells these services(though not from toople) It works, because after the initial work getting set up, in effect, it’s money coming in every month for doing nothing. (20%) I’ve done the hard work selling the service to my customer, they trust me not to sell them a lemon.
As a reseller, you need to trust your wholesaler, because, as far as the customer is concerned, the service is ‘yours’.
It works the other way as well. Because the service is ‘yours’, whenever anything goes wrong, the reseller has to do the customer service bit (saving wholesaler resource) - the reality is though, all you do as a reseller is pass it back, so the wholesaler saves nothing, they still need to resource the fault.
In reality, they are paying the reseller 20% for the introduction.
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