Welcome to Episode 304 of the MSP Marketing Podcast with me, Paul Green. This week…
Getting new clients for your MSP is hard enough, so you should do everything you can to avoid making mistakes, right? Often I see MSPs inadvertently making blunders with the way they price up their offering. It’s a complicated subject with many traps you can get caught in. So let’s look at three common price mistakes that MSPs make that are killing sales.
Let’s talk about something that makes a lot of MSPs uncomfortable… pricing. It’s not the most exciting topic, but wow, it can make or break your sales. I’ve seen so many great MSPs – really solid, technical, brilliant businesses run by brilliant people – struggling to grow simply because they’re just making the wrong moves with their pricing. So let’s fix that.
These are the three big pricing mistakes that can kill your sales, and of course, how to avoid them.
Mistake number one: charging too little because you’re scared of losing the deal, and this is so common. Have you done it? You’re sat in a sales meeting, the prospect starts questioning your price and suddenly you’re talking yourself down. You say that you think you can find a way to shave some money off the price by reducing the package, or maybe you can find them a discount. But by doing this, you’re kind of leaving money on the table just because you want the client to say yes. Here’s the thing though, when you undercharge, you actually scare off the best clients. They kind of think, why is this MSP so cheap? What corners are they cutting? Plus, you’re setting yourself up to resent the work later on when the numbers just don’t add up. So here’s what you should do instead… price confidently, know your value. If you’re delivering 24/7 monitoring, a great help desk and really strong security, don’t price it like you’re just fixing printers on an ad hoc basis. That’s crazy.
Mistake number two: making pricing complicated. I’ve seen some MSP proposals that are like three entire pages of line items. So here’s your base support, this bit’s extra, this is going to cost you this, we forgot to include this. It’s just so confusing. And the problem is that confused people don’t buy. So what you do instead is you bundle things, you create clear packages. You could call that bronze, silver, gold. You could call it something else, it doesn’t really matter what you name it. But the point is that when it’s all put t...
