How To Sell MSP Services: A Guide To Packaging And Pricing Managed Services
Technology Marketing Toolkit – Robin Robins
The excerpt provides valuable information for Managed Service Providers (MSPs) on how to set prices effectively and ensure profitability.
It highlights the importance of considering costs, perceived value, and finding the right balance in pricing.
It also mentions the top profit killers for MSPs and strategies to guarantee profitability.
The section further discusses the components of IT service offerings, pricing strategies and philosophies, measuring profitability, service options to avoid, service packaging and naming, cybersecurity and compliance, positioning and selling IT services, and new strategies to remain profitable and competitive.
To summarize the key points:
1.
Pricing Strategy: MSPs need to carefully strategize their pricing to ensure profitability.
This includes considering project fees and different types of support options such as full support, fixed fee, and partial support.
2.
Profitability Analysis: Regular evaluation of profitability per client and across the business helps in making informed pricing decisions.
The “Rule of 40” suggests that the sum of growth rate and net profit margin should ideally equal 40%.
3.
Service Offerings: MSPs should offer a range of services including end-user support, core infrastructure management, risk mitigation, fractional CIO leadership, professional services, and proactive account management.
4.
Service Packaging and Naming: Developing tiered service packages and naming them appropriately can provide clear choices for clients and encourage upgrades.
5.
Cybersecurity and Compliance: MSPs should incorporate essential cybersecurity measures and offer advanced add-ons for higher-tier packages to meet insurance and compliance requirements.
6.
Positioning and Selling: Emphasizing the business outcomes and strategic value of the services, rather than just technical details, is important.
It is crucial to resonate with C-level executives and focus on budgets, cybersecurity, and risk management.
7.
Upgrading and Revising Services: MSPs need to continually reassess and enhance service offerings.
This involves integrating advanced cybersecurity measures and aligning with the minimum requirements of cybersecurity insurance.
Strategic partnerships with cybersecurity insurance providers and revising service contracts annually can also help remain competitive.
8.
Contract and Pricing Strategies: Offering flexible contract terms, buyout clauses, trial periods, and simplified payment methods can increase client satisfaction and flexibility.
9.
Cost Analysis and Pricing Calculators: Developing comprehensive pricing calculators that consider all costs, including labor and support, can ensure competitive and profitable pricing.
By following these strategies and principles, MSPs can establish a strong market presence, achieve scalable growth, and build a reputation of excellence in the managed services industry.
Link: https://www.technologymarketingtoolkit.com/blog/how-to-sell-msp-services-a-guide-to-packaging-and-pricing-managed-services/