A useful tactic to help you determine your managed services pricing is to do a detailed study of your competition.
Knowing what your competitors offer potential clients can help you pitch your services at an attractive and compelling price point.
Thanks to the fact that all MSPs tend to have a website, you can work out plenty about how they do business without having to ask questions in person. This article discusses some of the things you should focus on.
A key part of the MSP model is to provide customers with a pricing structure that is clear and predictable, hence lots of “per user,” “per device,” and “per month” models.
Studying competitors’ pricing models isn’t just about the basic numbers. Try to find out exactly what your competitors are offering for the money and, most importantly, what is not included. By reading the small print, you can highlight your competitors’ negatives to potential customers and be in a position to explain why your service is different.
Most MSPs are branching out into complementary services such as online backup, asset tracking, and even software development, all of which provide these businesses with additional revenue.
By studying your competitors’ service offerings, you may identify gaps in your own, and perhaps adapt your managed services pricing to include certain services for which other companies charge extra fees.
If you are feeling audacious, you could consider calling some of your competitors while posing as a potential client. This gives you the opportunity to get a feel for their customer service skills and professionalism.
If, after doing so, you are confident that your business delivers better standards, you can consider increasing your managed services pricing to reflect it.
How did you decide on your managed services pricing? Share your experiences in the comments below.
And to follow through on the tips introduced in this short article, especially if you also work with SaaS or IaaS, be sure to enroll now in our free 7-day eCourse: Go-to-Market Strategy 101 for B2B SaaS Startups and Scaleups.
Topics:- Managed Service Provider MSP