Reseller Margin and Seat Reconciliation (Retention)

Reseller Margin and Seat Reconciliation (Retention)

1. 01

   Pull the vendor invoice and the client-facing invoice for the same billing period

   Place them side by side before touching any spreadsheet. Most margin leaks surface as a line item that appears on one document and not the other.

2. 02

   Map every active client seat to a named end user, not a company

   Platforms such as Circle and BuddyBoss bill on seats or member counts, so a departed client employee can sit on your invoice for months. Flag any seat with no login in the trailing 30 days.

3. 03

   Reconcile usage-based overages against the retainer ceiling

   Video minutes, AI credits, and storage tiers move independently of seat count. Uscreen-style video memberships and GPT White Label-style AI suites both meter consumption, so a single heavy client can erase the margin on the whole book.

4. 04

   Confirm the resale price still clears your target gross margin after any vendor price change

   Compute margin as (client price minus vendor cost) divided by client price. Anything under 40 percent on a white-label line deserves a written justification or a repricing conversation.

5. 05

   Check that no client has been moved onto a legacy plan the vendor no longer supports

   Grandfathered tiers on platforms like BaseKit or WorkDo can hold for years and then break at renewal. Note the vendor's stated end-of-life date in the client record.

6. 06

   Log the reconciliation outcome and the next action owner in the account record

   One line per client: margin percentage, seats removed, price change applied, or escalation raised. This becomes the audit trail when a client disputes a renewal increase.

7. 07

   Send the client a plain-language summary of any change before the next invoice lands

   Give at least 14 days notice on seat removals or price adjustments. Surprise line items on a retainer invoice cost more in trust than the margin they recover.