Common VoIP Reseller Pricing Mistakes and What to Do About Them

Business People Discussion

The UCaaS market had a value of more than $44 billion globally in 2021. Estimates put the market’s growth at more than 15% by 2031 due to the popularity of hybrid and virtual office environments and the growing need that organizations have for flexible and mobile communications. Value-added resellers (VARs), managed service providers (MSPs), and other resellers want to get in on this growing market trend with a VoIP reseller program to sell cloud communication services and equipment.

As a VoIP reseller, pricing is vital to the success and profitability of your reselling business. An excellent white-label UCaaS platform can help you deliver a better product to your users and offer features that allow you to tap into lucrative business markets. 

When your partner sells services and equipment at volume prices, you can resell the products with a high margin. Partnering with a platform that offers support, the leading technology, and high reliability can also help you launch your reselling business successfully.

Understanding the importance of pricing as a VoIP reseller will help you overcome challenges and help your business succeed. Navigating the following common mistakes can help you find a suitable market and price your VoIP service profitably.

Mistake #1: Making Price Your Top Priority

When pricing your service for users, be careful not to focus solely on having the lowest price but consider the value you offer clients. If your VoIP marketing strategy is price-centered, you may fail to attract prospective clients seeking value. 

Instead of focusing on the cost of your service, mention that your clients can get reliable service, customer support, and all of the features they need for a great price. While prospective clients want to know the cost of your VoIP service, they also want to understand the value they are getting when they partner with you.

You can differentiate your company from competitors by putting reliability, scalability, and value-added services above pricing. White-label UCaaS providers offer features like Fax, SMS, and Voice API that small and medium-sized businesses need. 

Business customers value flexibility and mobility to implement and sustain hybrid office environments as demand grows. Prospective clients shopping for a VoIP service already understand the cost-efficiency of the service. They want to know that they will be able to make and receive calls and grow their business with your reliable service.

Mistake #2: Confusing Prospective Buyers With Complex Pricing Models

VoIP resellers can turn away potential customers with confusing or misleading pricing models. Your VoIP service pricing should be simple and easy for your target market to understand. Offering consumers a low price and then charging hidden fees may discourage them from signing up for your service. Customers that feel misled may not be customers for long and will search for a competitor that appears to be more trustworthy. 

An ideal pricing plan is easy to understand. Be transparent with fees and specify what customers will get from your VoIP service. Tell the customer upfront if there are fees for additional features, services, and devices.

Related: How to Become a VoIP Service Provider

Mistake #3: Not Communicating With Your Customers

Many VoIP resellers do not appreciate the power of communicating with their customers as part of their pricing strategy. Focusing on your customer’s needs will help you shape your pricing plan to suit buyers and prospective clients. Some resellers attempt to appease every customer and market to every demographic, but optimizing your business for select customers is generally a better strategy. Know your customers’ technical abilities and ensure your pricing plan is not too technical for them to understand.

Establishing a good relationship with customers and quickly building rapport with prospective clients can help you communicate the value of your services and let them know you’ll be with them on their journey. VoIP buyers have abundant options when it comes to providers. It is vital to let them know why you are a more valuable partner than their other options.

Understanding how your customers and prospective buyers want to communicate with your business can also be beneficial. Some customers prefer a phone call, while others would like to receive a text or email. Ensure you reach out to your customers with their preferred communication method. 

In addition, be sure to communicate any price changes to customers early and approach changes slowly to avoid unpleasant surprises. This can include shifts from introductory pricing to standard or premium prices. It is best to let customers know the standard pricing upfront.

Mistake #4: Following Competitors Instead of Learning From Them

It is common for VoIP resellers to fall in line by pricing their service according to their competitors. When you follow your competitors’ lead for pricing, you will always be one step behind them. It is better to watch your competition and learn from them. Why do your competitors choose their pricing, and what do they offer? Your service may have valuable benefits that allow you to ask for higher prices than competitors.

Your competitors may offer a lower price for service with questionable reliability or fewer features. Would you expect to pay the same for a VoIP service with the most basic features as  you would a VoIP service that provides all of the features you need? As mentioned above, promoting value over cost is often a more effective pricing strategy.

Related: UCaaS Providers: How to Choose the Best

Mistake #5: Partnering With the Wrong White-Label UCaaS Provider

Partnering with a VoIP provider directly impacts the pricing of your service. Some UCaaS companies charge a startup or connection fee for reseller partners, which can cut into profit. A tier-1 UCaaS company specializing in reselling provides more support, technology, and reliability. 

You can also purchase at high-volume prices for a higher margin on sales to consumers and businesses. There are also a variety of pricing plans you can offer to customers, including per-user, per-device, and all-inclusive pricing plans.

Since your pricing is related to the value your VoIP service offers clients, it is crucial to find a provider that delivers reliability and the features your customers demand. An ideal partner will have a network with 99.999% uptime and provide service to your clients quickly with automated quoting. 

Your partner should also offer high-quality VoIP devices from the leading brands and voice integration for your customer’s apps, CRM, and other software using a simple API. When you choose a reputable partner, you can price your service profitably while delivering impeccable value to your customers.

Optimize Your VoIP Reselling Business With a Leader in White-Label UCaaS

Pricing is critical to your success as a VoIP reseller, but it goes hand-in-hand with the value you offer your customers. Partner with an exceptional UCaaS platform to deliver the right high-quality service and VoIP solutions to your customers. Then be sure you understand and communicate with them about pricing, ensuring the details are clear and easy to understand. 

SkySwitch is the premier white-label UCaas platform for VARS, MSPs, and other resellers to tap into the profitable virtual and hybrid office market. Our turnkey reseller program provides the support you need to offer users reliable service and devices. We are a tier-1 UCaaS platform offering softphone, FAX, video, and software integration with a programmable voice API. Get started with the SkySwitch VoIP reseller program today.