Price Margin Rules

Learn how to configure and apply price margin rules in CloudCockpit to control your selling prices across your pricing hierarchy.

These rules allow you to define pricing:

1. Between CSP > Reseller
2. Between Reseller > Customer
   
3. For each offer category (License, Azure plan, Perpetual software, etc.)
4. For each subscription

Breaking change: Microsoft Promotions (effective April 6, 2026)

Starting April 6, CloudCockpit introduces a change in how Microsoft promotions affect pricing.

When a subscription has a Microsoft promotion applied:

1. The ERP Price is automatically reduced based on the promotion
   
2. ERP Price Minus Discount and Split Margin now use this discounted ERP value

Why this matters

Rules that depend on ERP will now calculate from a lower base value, which may:

1. Reduce final selling prices
   
2. Reduce your margins
   
3. Apply discounts on top of existing discounts
   

Example

1. ERP before promotion: 10,50€
2. Promotion: -20% → 8,40€ ERP
3. Additional discount rule (10%) applied → 7,56€ final price

Result: Double discount effect

Key pricing concepts

Before configuring pricing rules, it’s important to understand the core values used in calculations:

1. ERP Price Microsoft’s estimated retail price for end customers.
   

1. List Price The purchase cost of the subscription (what you pay Microsoft or your provider).
   

1. Unit Price The final selling price after applying a pricing rule.

Invoicing Settings

Configure additional pricing controls in Administration > Settings > Invoicing:

1. Microsoft Promotions share Microsoft promotions with your, resellers or customers
2. Markup Limit Prevents your selling price (unit price) from exceeding the ERP price.
3. Discount Limit Prevents your selling price (unit price) from dropping below the cost price (list price)
4. Margin over ERP for RIs Allows margins to go over the ERP price for Reserved Instances created or renewed after January 1, 2023.
   

Price Margin Rules

Each margin rule gives you flexibility in defining pricing that suits your business model and agreements with Resellers or Customers.

Combine these rules with CloudCockpit’s invoicing settings to ensure margins stay within your desired range.

Markup

Increase the List Price by applying a percentage on top of your cost.

Use for simple and predictable cost-based pricing.

List price + (List price x Price Margin Percentage) = Unit price

Example

As a CSP, I can make an agreement with the Reseller where I place a 25% margin over the List 

price of the offer.

Office 365 Business Premium

List price = 8,43€

Margin = 8,43€ x 0,25 = 2,1075€

Unit price for Reseller = 8,43€ + 2,1075€ = 10,5375€ 

ERP Price Minus Discount

From April 6, 2026 onwards, if the subscription has any Microsoft promotions applied the ERP will be lowered with that same discount.

On the ERP Price Minus Discount margin rule the offer ERP price is used for the calculation.

The percentage set is applied on the ERP price in order to reduce its value.

Use to offer competitive pricing below ERP.

ERP price – (ERP price x Price Margin Percentage) = Unit price

Example

As a CSP, I can make an agreement with the Reseller where I place a 10% discount on the offer ERP

price.

Office 365 Business Premium

List price = 8,43€

ERP price = 10,50€

10% Discount = 10,50€ x 0,10 = 1,05€

Unit price for Reseller = 10,50€ - (10,50€ x 0,10) = 9,45€ 

Split Margin

From April 6 2026 onwards, if the subscription has any Microsoft promotions applied that subscriptions ERP will be lowered with that same discount.

Split Margin Percentage lets you set a percentage of the difference that you have between List price and the ERP price.

(ERP price – List price) x Price Margin Percentage + List price = Unit price

Example

As a CSP, I can make an agreement with the Reseller that I charge 25% of the margin between Microsoft's List price and ERP price.

Office 365 Business Premium

List price: 8,43€

ERP price: 10,50€

Unit price for Reseller =  (10,50€ - 8,43€) x 0.25 + 8,43€ = 8,9475€ 

Margin

Ensure your profit represents a percentage of the final selling price.

Use when you need strict control over profit margins.

List price / (1 – Price Margin Percentage) = Unit price

Example

Margin to apply: 10% 

List price = 8,43€

Unit price for Reseller = 8,43 / (1 – 0,10) = 9,37€

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