Low Price Does Not Equal Low Cost
MSP marketing needs to portray the reality of service value in order to properly educate clients. One of the best ways to do this is the juxtaposition of price against cost. Oftentimes, MSP solutions, usually in competition with your own, will be available at an extremely low price. But this is because service provision from these solutions is so cheaply wrought that it ends up costing the client more in the long run.
As an example, consider break-fix services. A break-fix service package is usually available at bottom-dollar pricing and relies heavily on vendor support. When you get down to it, the MSP offering such a package is really just a “middle man” between the client and vendors who go in to fix the problem. Here’s the thing: a break-fix package is ultimately more expensive, because it diminishes the value of an investment. Where you could’ve gotten five years out of a system (or more) with proactive maintenance through a reputable MSP, the break-fix solution waits until a problem crops up in order to “send in the troops,” as it were. It’s taking a vehicle, never changing the oil, then getting service done when the car breaks down.
So you see, low price doesn’t equate to low cost. As a matter of fact, the lower the price of MSP services, often the greater the cost of those same services in the long run. Zig Ziglar, a known marketing genius, made some sage observations pertaining to this issue in his writings. He noted an example of a bicycle he purchased bottom dollar for his son. But the darn thing was so cheap, every time Zig turned around, he had to buy some new part for it; so in the end, he paid more for that clunky used piece of garbage than had he just purchased a newer bike. You’ve seen the same thing with cars. Get a clunker for $800, expect to spend $5,000+ on repairs before you’re done. You might as well have simply purchased a vehicle at $5,000 and avoided the hassle.
Clients Should Be Initially Skeptical of Pricing
As a general rule of thumb, your clients should be asking about the prices you’re selling your services for. If they don’t think those prices are a little high, there’s a good chance you’re either underselling yourself, or failing to provide some core aspect of services which will end up being fundamental to client requirements in the long run.
There’s even a term for these prospective expenses: it’s called “overall cost” or “hidden cost.” It’s not really that the cost is hidden, though— that’s a bit of a misnomer. It’s that, generally, clients of small to medium-sized businesses may fail to consider this variable as they go about acquiring services.
When you provide tech support that includes:
• Proactive Maintenance
• Cloud Computing Solutions
• Backup and Data Recovery
• Hardware Lease
• Hassle-Free Vendor Management
You’re actually providing a service that will ultimately avoid a great bevy of “hidden” costs that would otherwise undermine operations of clients through unnecessary expenses.
The “Aha!” Moment
MSP marketing which gives voice to this reality will give clients that “aha!” moment where they’re able to truly see the value of your services.
Another tactic to employ in explaining this concept is to inform the client that you don’t intend to continuously be apologizing for cost of services over the course of service provision— which is what happens with cheaper MSP services. Your higher price represents a lowered overall cost over the course of a service period. Show the numbers; show the client the cost of services which are rescinded from the under-priced options.
The Upward Spiral
MSP marketing which cohesively educates clients as to the hidden variable costs associated with total service life are going to have happier and more successful clients. You’re actually saving them money. As a professional, this is the tack you should take. By charging a higher price for better services, you save your clients money in the long run, which allows them greater expansion and progressive upward mobility. You’re facilitating a positive upward spiral where, in the end, everybody wins.