posted by Lee Rozeboom on Monday, October 09, 2017 in Unified Communications and IT Blog

New threats and issues to solve mean new technologies. New technologies mean new monthly recurring revenue opportunities. New MRR opportunities mean increasing the customer’s payment. Increasing the customers payment means… Oh boy, this should be easy right? It’s just another sales opportunity! Okay, it’s not that easy and in the MSP world there is no “easy button”, much to everyone’s chagrin. However, let’s be honest. When the sage Paul Dippell from Service Leadership speaks, it’s about the closest you are going to get to one. So if you can make the familiar scenario above easier, what are you waiting for? In the first of a two part webcast, learn how next gen is richer for clients, richer for you, and simpler for both.

Richer for Clients:

Next gen MSP will be richer for your clients. How? They’ll have more offerings to give them the best possible solutions. To determine what offerings are the best overall, he dives into survey results.  By looking at how the various offers are performing for MSPs today – how much they’re being offered and their growth – you can determine which offerings are the most important to add or grow in your company.

This is where the results get interesting. Backup DR and IT Security are at the top for what companies say are ‘doing better than expected’ with Hardware as a Service, or HaaS, tied for third. However, when you look at all three categories for offerings and add what’s doing better than expected, plus what’s not being done today, plus what has strong or moderate growth, then HaaS takes the number one position. It is the offering with the most competitive advantage for MSPs to add or grow because it performs well and differentiates you from competitors who aren’t offering it.

This is good news for your clients. According to our recent GreatAmerica survey of over 500 end-users, they prefer a HaaS model when it comes to buying their technology, as shown in the graph below.

Lease Rental Preferred Service Leadership

Richer for you:

It’s also good news for you. Next, a Service Leadership pie chart shows that 50% of MSPs will be charging higher prices in the next 3-5 years, which is the right mindset. If you couple that with more services and content, you’ve got a recipe for more deals with higher margins. You’ll have long-term customers and with a range of services, you’ll be a critical part to their company. The key is not to sell your services short! Paul explains that mid to small managed service companies are boutique providers, which means you need high value, high content, and high price. You offer premium services and shouldn’t be competing on a low-price model.

Simpler for both:

Finally, the next gen MSPs will be simpler all-around, particularly when it comes to the proposal and pricing. Currently, the lower level maturity prices are device-based and have an “a la carte” option for the customer. This is complex for the customer because they often don’t understand all the devices and what they need. It’s hard for you because they probably aren’t getting a complete solution and it’s not standardized.  The next step up in maturity level makes some progress by presenting prices to the clients as user-based, instead of device and offer set options, usually ‘bronze, silver, gold, or platinum.’

The best-in-class MSPs on the other hand, ditch the precious metals and go with one platinum option that they call ‘optimum.’ This is simple for the MSP because the sales team will know that option inside out and be able to explain it. It’s easier on your customer who’s not overwhelmed with too many choices or parts and pieces they don’t understand. What this comes down to, is that MSPs must get good at pricing richer, more complex offerings in simpler terms. In fact, these MSPs use HaaS and monthly payments to put the pricing into the client’s terms and how they determine their budget. If they are in the hospitality business, you can give you price in terms of the cost per bed. If they are a law firm, price per partner. How can you make the consumption of your solution easier for your client to utilize, budget for and understand?

Simple stuff right? No, no it isn’t. However, it can be a lot easier than it seems. If you want to enrich the solution for both you and the client, while making it easier on everyone involved, then it’s time to start making the necessary changes to your sales process and your customer. Join us for Part 2 on October 18 to become a next-gen MSP or watch the Part 1 recording.

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About The Author

Lee Rozeboom, Vice President of Strategic Relationships, is responsible for establishing and maintaining relationships with those with influence in the Unified Communications, Low Voltage and IT markets. Lee will also serve as an outward facing voice for our organization and provide oversight and guidance to the Data team. In his previous role, Lee served as the Vice President of Sales for the MSP division. He has been involved in lease financing since 2006. Prior to joining GreatAmerica in 2006, Lee was a Financial Planner, holding his Series 6 and 65, for Northwestern Mutual Financial Network. Lee received his Bachelor of Science in Finance and Marketing from Babson College in Wellesley, MA.

  1. as-a-service
  2. managed services
  3. recurring revenue
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