Bottom line, managed WordPress hosting is hassle free fast WordPress hosting with high-quality support from staff with lots of WordPress experience. While all this sounds amazing, the plans for managed WordPress hosting is usually on the higher end of the scale. For example a personal account with a popular managed WordPress hosting provider costs $29/month where you can only host 1 site (getting maximum of 25,000 visitors per month). The next level higher where you are allowed multiple domains will cost you $99/month. A person starting out a blog cannot afford this.
IT vendors offer channel partner discounts that enable resellers to purchase products below list price. Vendor discounts vary widely and may range from 10% to 50%, depending on such variables as type of product and the volume of product the reseller is purchasing. The idea behind reseller discounts is to cover the channel partner's sales and marketing costs and leave room for profit margin.