MSP Pricing: Always Sell On Value

By Christine Kern, contributing writer

A ConnectWise e-book “Pricing: 5 Proven Tips for Maximizing Your Profit” examines the best strategies for pricing to maximize profitability for your IT solutions provider. Among the topics discussed in the e-book is the difference between cost and value. The authors state, “Always sell value. Customers pay for benefits.” ConnectWise cautions IT solutions providers not to lower prices to beat competitors — it is a better strategy to educate your customers on the worth of the services you provide.

The e-book cites advice from Gary Pica of TruMethods who recommends that you make a list of how you are different from your competitors — and then focus on those differences. At a Business Solutions’ Channel Transitions VAR/MSP Executive Conference, Pica says each managed services provider (MSP) has to define their “company way,” the unique way they deliver value. He points out that when you provide services based on what sets you apart from the competition, following a process to consistently deliver value, you will likely charge more. Investing in doing things the right way ultimately provides more value for your client. “I care too much about my customers to not charge them enough,” he says.

The ConnectWise e-book adds that it’s also necessary to prove your worth. Prep for quarterly business reviews by providing your team with value-based answers to price objections. And remember to provide reports of what happened “behind the scenes” to keep their solutions protected and in working order. The authors state, “When things do not go wrong, customers might believe that some services are redundant or overpriced; be sure to show them the value in the services you are providing.”

The e-book can be accessed from BSMinfo.com ...