bought without knowing in advance what the cost will be , and when you sell by the hour , the client is now focused on how you ’ re spending your time , not on the value you ’ re bringing . Further , the more efficient and effective you become in delivering a result , the more you ’ re penalized by not getting paid . Let ’ s say you can maintain a client ’ s network in 10 hours a month due to operational excellence , good hiring and management of your people , and putting the time into developing systems and processes that make you far more efficient . If every other MSP needs 15 – 20 hours to deliver that same result and would charge accordingly , you would be far better served to charge for the value you deliver ( and what the client would have paid everywhere else ) over the hours you put in .
BUT … Managed Services Is Not A Guaranteed Road To Wealth
So , is selling managed services a surefire way to secure a windfall of profits and happy clients ? Well , like all good consultants , my answer is , “ It depends .” I firmly believe that having clients on a subscription or monthly fee is a good thing for a number of reasons , but it ’ s not a cure-all . If you underprice the fees and / or don ’ t have a good handle on service delivery , you can go broke , so simply switching to managed services isn ’ t a surefire fix unless you do it right . In fact , I know many “ pure play ” MSPs that are making far less money than members of mine who are selling to home users or who still have the larger percentage of their client base on a pay-per-project basis .
If you want more information on how other MSPs are pricing and packaging their services , download the 2019 MSP Benchmark Survey that Kaseya produces every year at MSPSuccessMagazine . com / kaseya . It will give you a starting point and compare your current pricing model to what others in the industry are doing .
There ’ s no doubt about it : Robin Robins has helped many MSPs and IT services companies to grow and prosper , liberating them from stagnation , frustration , drudgery , and low incomes . For over 18 years , Robin has been showing MSPs and IT services firms how to implement marketing plans that attract higher-quality clients , lock in recurring revenue streams , and secure high-profit contracts . Her methods have been used by over 8,000 IT services firms from around the world , from start-ups to multimillion-dollar MSPs . For more information and a FREE copy of “ The MSP ’ s Ultimate Guide To IT Services Marketing And Lead Generation ,” go to Technology- MarketingToolkit . com . n
Founder and CEO , Technology Marketing Toolkit , Inc .
HAVE A LAUGH
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