17 May Avoid Underpricing Your IT Services
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 your competition and offering steep discounts also denigrates the value of your services.
Quote for value, not price
When providing a quote, 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.
While it might only cost your business $75 per hour to deliver services, simply marking that number up to $150 per hour is a mistake. Instead, look to the value of the work you’re doing.
If you’re implementing a back-up and recovery solution, point out to your clients the cost to their business in the event of downtime or a lost data event. It’s likely much more than your fee. Being able to illustrate that to a client justifies your cost, and you can charge more based on the value of the protection you are offering.
Blow your own horn
If you’re doing a great job as a managed service provider, there is a high likelihood that your clients will take for granted that their computers and networks are operating smoothly with little downtime, performance issues or security breaches. Unless you proactively communicate all the things you are doing 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.
Use change reporting to prove the value of your services by documenting the work completed along with the mitigated risks and the money saved. For instance, discuss the number of patches, updates, and minor computer and network issues that were all remediated behind the scenes that prevented major disruptions and downtime. And don’t forget to put a monetary value on those improvements and proactive measures!
Network Detective Pro helps keep you from leaving money on the table and delivers the proof you need to show you earned it. 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. It gives you undeniable proof of everything you’re doing to protect and secure your clients’ networks.
Click here to get a demo and find out how Network Detective Pro helps you earn more while lightening your workload.