Bringing in monthly recurring revenue isn’t easy.
You’ve done all the work to open and run your MSP. You’ve invested a lot of money. You’ve purchased expensive tools. You employ great team members. You’ve added new customers. But, your profit margins just aren’t what you expected.
You’re not the only MSP with this complaint. In fact, if you look at the profit margins for average companies, they’re about the same as they were five years ago. In contrast, top performers are raking in the profits – and doing so pretty consistently.
Do you feel like the rich companies are getting richer while you’re just plateauing?
If you want to get out of your rut and start selling your IT services at the right price, take a look at your sales conversation. You may be dropping the ball when it comes to talking to your customers. Having the right conversation helps you secure the right leads at the right price.
What’s “Fine,” And How Much Does It Cost?
The most important client question you should be able to address – the focus of your entire sales call – is: “If our IT service is already fine, why should I spend more?”
When you understand this question and how to answer it, you’ll see a dramatic improvement in your efforts to sell IT services at the right price.
Answering that all-important question starts by understanding where the client is coming from and what their misconceptions are. There are two really crucial misunderstandings that clients usually have, and these impact your ability to make a sale at the right price.
- Companies think their IT services are fine, but they really aren’t. What does “fine” mean to your clients? It’s simple: “Nothing crashes, and vendors call us back.”
- They don’t know the “real cost” of their IT service. Clients often think that getting a bill from their IT services provider is where the cost conversation begins and ends.
When you look at these two statements, you know there’s more to “fine” and “cost” than these watered-down views. But, how do you address them?
Your clients need new reference points to truly understand the value of your services and the cost that comes with them. Show the contrast between their views and yours.
- Expand their definition of fine. For MSPs, the definition of quality service entails a lot more than avoiding crashes and talking to vendors on the phone. Clients need predictable performance, functionality, reduced risk, capital cost and boosted productivity.
- Explain the true cost of IT service. It’s the people. How is your client’s team productivity impacted? This is about more than paying a bill for IT services once a month. Companies may be losing profits when computers aren’t working, issues are constantly coming up and employees are calling and waiting for returned calls from their current MSPs.
How Do You Reframe Clients’ Understanding?
So, how do you take clients from their views on “fine” and “cost” to investing in your services? Based on these two misunderstandings by the client, there is an imperative step to include in your MSP sales process: reframing.
Here are five steps you should take to successfully reframe your customers’ views on your service.
- Paint a picture. Show clients the service they’re getting now and then paint a contrasting picture of how their service could be improved if they begin a relationship with your company.
- Attach a value to your picture. Once you show clients what their service could be like with your company, ask them if they would be willing to pay a little more for better service.
- Use cost to your advantage. You cost more because your service is simply better. Explain the value of a high-quality experience.
- Don’t sell technology. Your customers don’t care as much about technology as you do. They care about results.
- Leverage your Super Power. Use your unique offerings to increase your competitive advantage.
When you take the time to address, explain and reframe how your clients and potential clients think, you’ll begin to increase your MSP sales and boost your monthly recurring revenue.
Interested in exploring more MSP sales strategies? View a free webinar now.