Finding the right price for managed services offerings has always been a battle for MSPs – a balancing act influenced by geography, the ability to articulate value propositions to customers and the competitive landscape. While savvy solutions providers have learned to quantify their vertical focus, engineering expertise, and say “no” to potential customers unwilling to pay for IT expertise, many MSPs continue to struggle with pricing and short change themselves as a result.
As more new MSPs adopt the business model, the question has become: Are MSPs willing to sacrifice profitability by reducing fees just to win business? And what impact will that have on the channel? Many argue that as managed services grow with SMB customers, so does the commoditization of the market. On the flip side, research from CompTIA shows that managed services customers are enjoying IT cost reductions ranging from 25 to 50% and report nearly a 90% satisfaction rating. If the benefits to the end user are so clear and being realized, why are so many cutting pricing to win the business?
That’s the big question and the debate that’s brewing in our industry.
At NetEnrich, we don’t believe managed services are even close to being commoditized, but recognize the dangers of this downward price trend. That’s why our ongoing BIZ DEV webinar series will focus on pricing guidance from A to Z in November, and you won’t want to miss one of these educational opportunities.
Wednesday, Nov. 16 @ 9 am PT, Noon ET: Don’t let other MSPs drag your business down. Join us for this value-pricing webinar to learn how to avoid commoditizing your services and how to set pricing that makes you money and keeps customers coming back. We’ll welcome channel experts to share pricing advice from in the trenches during this webinar. Register today!
Thursday, Nov. 17 @ 9 am PT, Noon ET: Listen to industry pundit Larry Walsh, CEO of the 2112 Group, discuss recent research and analysis from CompTIA and the 2112 Group during this webinar cohosted by Ingram Micro. Larry will share his opinion about how and why MSPs are underpricing their services, what impact that’s having on the channel, and what MSPs can do to address this head on in order to ensure higher margins and enjoy profitable pricing. Register here so you don’t miss this opportunity.
Tuesday, Nov. 29 @ 11 am PT, 2 pm ET: N-able Technologies will host this webinar as we partner to bring you tips and advice on pricing your managed services offering right, and not falling prey to low-balling your value. Join the conversation on pricing and hear advice from well-respected MSP CEO Michael Drake of masterIT in this webinar moderated by Justin Crotty, VP and GM of NetEnrich and Mike Cullen, VP of Sales for N-able. Register here.