Forums: Discussions for entrepreneurs and small business.

1. Are there specific tried and true industry incentives?
2. What percentage savings should you pass along to dealers?
3. Are there resources online to explain how to start & maintain a successful dealer/reseller program? 

Hi,

I am not sure what you sell, so I don't know if my advice will help.  First, the Harvard Business School has downloadable software you can use to calculate the type of pricing you want to do.

I also worked in the hardware industry for a while.  My company had a tiered pricing program for various types of distributors.  Dealers received the highest discount (50% off retail).  Contractors received the lowest discount of 10% off retail.

Your discount amounts though would be set by you.  But, keep in mind that a dealer needs enough of a discount to factor in his profit margin and still sell at a competitive price.  You would need to sit down with your dealers and come up with a fair dealer pricing that allows you and them to still make a profit.

Thanks. Is the software available directly on the HBS's website?

I found it on their site and refererenced on several others.