In the crowded IT services market, it can be easy to fall into the trap of competing on price. But, that often spells trouble for MSPs. By reducing prices, you’re cutting your margins thinner, undervaluing your offering, and making it more difficult to provide a high quality of service for your customers.
Instead, consider raising your prices to reflect the value you deliver. Gary Pica of TruMethods, a training, peer, and accountability firm focused on MSPs, often advises the service providers he works with to do exactly that. In The TruMethods MSP Improvement Plan, Gary puts it this way:
“I hear all the time about how managed services is becoming or has become a commodity and other companies are pricing their service so low that you can’t compete with them. But, if you survey the top MSPs around the world, you will find one thing in common—their prices are going up, not down. The hundreds of MSPs that are members of my coaching program will tell you their prices have gone up along with their ability to close new deals. Why is that? It’s simple; you can’t deliver quality support by pricing your managed service offering too low.”
Pricing is just one key area to consider when you’re looking to improve your MSP. In The TruMethods MSP Improvement Plan, Gary cover three additional areas MSPs need to focus on fixing in order to see the type of success they want. Download your copy today to learn more.
4 resources to help you address pricing challenges
If you’re ready to dig in, identify potential pricing problems that your MSP may be facing, and find new ways to communicate the value of your services, check out these resources.
1. MSP Business Plan Template
You can’t address pricing problems until you understand what your goals are and how you’re performing against them. Check out our free IT services business plan template to help you get started with the planning process and develop a one-page plan that will be easy for your whole team to reference.
2. MSP Profitability Playbook
In addition to the MSP Improvement Plan, Gary Pica also collaborated with us to produce the MSP Profitability Playbook. This guide will help you take an in-depth look at how profitable your MSP business really is and how find more success by increasing monthly recurring revenue.
Recipe for explaining value of an IT investment
If you decide to raise the prices of your managed services offerings, helping your customers understand the value your services provide will be a critical part of the process. The step-by-step guide How to Get SMB Customers to Understand the Value of an IT Investment will walk you through how to effectively highlight the positive impact you can have on customers’ businesses.
Ready, Set, Managed
Learning from peers who have overcome similar challenges can be a valuable tool, and our interactive program Ready, Set, Managed is designed to help VARs adding managed services and newer MSPs learn from others who have found managed services success. Register to get your invitation today.
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