Play to Win the Pricing Game

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Play to Win the Pricing Game

The biggest challenge preventing many managed service providers from growing is pricing. If you don’t charge enough, you’ll struggle to make a profit on the services you deliver. You’ll also undermine the perceived value of your offerings.  

Most decision makers know they get what they pay for, and you should reinforce that notion. If your intention is to position your services as being better than the competition, offering steep discounts to win new business is going to have the opposite effect. 

Get out of the hourly pricing rut 

When providing a quote for your services, you may be tempted to charge an hourly rate with little consideration given to a value-based pricing strategy. However, this approach leaves money on the table. 

Put a dollar value to reliability 

If you’re doing a great job as a managed service provider, there is a high likelihood your clients will take for granted their computers and networks are operating smoothly with little downtime, performance issues or security breaches. Unless you proactively communicate all the things you do to keep them up and running, hassle-free, your clients may question the value of your services, making it even harder to ask for more money as the cost of service delivery increases. 

Let go of clients you’ve outgrown 

Some price-conscious clients are simply looking for a bargain and won’t be able to see anything past your price tag. It’s up to you to do a cost analysis to be sure you are actually making money with every client. If not, use your documentation to show them your value and adjust your pricing model to reflect your worth. If they are unwilling to make that adjustment, then it’s time to let them go. 

Don’t budge on budget 

Offering discounts and underselling your services leads to dissatisfaction among your clients and stifles your ability to deliver your best work. Not to mention making you feel resentful and like a bargain bin service provider. 

Let Network Detective Pro help 

Network Detective Pro is the IT industry’s de facto standard IT assessment and reporting tool used by MSPs. Its non-intrusive data collectors are the fastest and easiest way to find risks and issues on prospect sites with no agents, probes or software installs. It provides end-to-end automation – from scheduled scans to report generation and delivery, it’s the only way to do the recurring IT assessments required to grow and retain your existing clients. And it provides outstanding ROI. One new client won, or one new service opportunity discovered from an existing client, pays for a full year of the software. 

Click here to get a demo and find out how Network Detective Pro helps you earn more while it lightens your workload.