Managed IT Services Pricing Strategy
#ManagedITServices #ManagedServices #ITServices #ServiceLevelAgreements
What Managed Services Pricing Strategies Should You Use? And How Should You Structure Service Level Agreements?
So our next question is here is what managed services pricing strategies should we use? And how should we structure service level agreements?
Many of the ideal clients you want aren’t up at two o’clock in the morning in a cold sweat, worrying about managed services.
They may be worried that “Oh crap, our network is down again.” Or “why does the system keep crashing?” Or “our competitor had a major security breach. Are we next?”
They may be legitimately worried about those things, but it’s not likely that they’re searching for that particular keyword phrase on search engines.
And again, your buyer persona research will tell you that one way or the other.
The pricing that you use has to be profitable. Many managed service providers that don’t scale get stuck at the whole idea of product/market fit.
You’ve identified the right services, features, products, services, and bundling that appeal to the market you’re going after. And in larger MSPs, software companies, and technology companies, this is an entirely separate discipline called product management.
And if you want to scale your business substantially and you’re selling packages of managed services, it’s critical that even if you don’t have a full-time product manager on your payroll, that you start to learn enough about how all of this works. But along the same lines, you should not be leading with pricing.
If pricing is on your homepage or pricing is the first thing a stranger sees about your company., something is wrong. You can talk about pricing. That’s a valuable way to attract people to your website, but that shouldn’t be the only trick in your playbook.
Because early on, people don’t care about your features and your pricing.
They care about the problems that you can solve for them. What’s in it for me. Early on, until you’ve built up trusted advisor status, until you’ve been seen as an educational resource, you don’t want to go to a pricing conversation. A lot of what this comes down to is if you’re just focused on pricing, yeah, sure. That’s a product management issue. It’s an operations issue, tracking time, tracking profitability.
It’s something to be considered, but if that’s your primary go-to-market strategy, if that’s what your marketing funnel and your sales funnel are all about, you’re missing most of the opportunity to capture the real value about what it is that you do.
In terms of structuring your service level agreements, it’s mostly the same thing. And again, if you want to get insight as to what’s going on in the minds of your ideal buyers that you’re trying to attract, most of these types of questions will come up when you’re doing thorough buyer persona research.
Because the persona research, for the most part, informs what you’re doing with your premium content creation and how you’re going to attract the right visitors to your website, what to concentrate on with topics and channels.
But along the same lines, you’re asking them what you look for in a company like this? How do you evaluate a company? What’s the experience you’re looking for? That will give you ideas on how to handle pricing and whether pricing is really at the top of their list, or it’s really like a second, third, or fourth priority.
And a lot of that same line with SLA’s.