Backblaze Margin Threshold

The Backblaze Margin Threshold framework helps agencies determine the minimum client fee needed to profitably resell Backblaze B2 storage. Given Backblaze's $6.95/TB/month standard rate and $15/TB/month for Overdrive, agencies must account for their own overhead, support, and margin targets. For example, an agency reselling 10TB of standard storage at $100/TB/month generates $1,000 revenue against $69.50 in Backblaze costs, yielding a 93% gross margin. However, Overdrive's multi-petabyte commitment and white-glove requirements make it viable only for enterprise clients, where the agency can charge a premium. The framework sets a floor: if the client fee falls below 2x the Backblaze cost, the agency risks negative margins after delivery and support hours. Agencies should use this threshold to price productized offers like the $299/mo SMB Cloud Backup, ensuring each retainer covers storage, setup, and monitoring.