Blog | January 27, 2014

Overcome the #1 Sales Objection to Managed Services. Here's How.

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By Jay McCall

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Studies show that managed services providers as a whole are struggling to convert their customers over to a recurring revenue model. While attending an N-able by SolarWinds conference, former MSP Gary Pica, CEO and founder of TruMethods, an MSP mentoring company, addressed this pain point to an engaged audience of managed services providers. Pica shared a story from his managed services days when he presented a plan to convert a customer over to a recurring revenue model and was met with the classic objection many MSPs face: “Our IT is fine. Why should I spend more money with you?”

“The problem is that you have a different idea about what ‘fine’ is compared with your customers,” says Pica. “When they use that term they mean that servers aren’t crashing and their IT vendor calls them back if they have a problem. When an MSP uses the term ‘fine,’ he’s thinking about providing a predictable IT performance in contrast to having to react to every IT problem that comes along.”

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