Managed Services Blueprint

One of the questions I frequently get from my members is, “How can I get my customers to see the true value of a Managed Services plan?” 

So many have been on a break-fix model for so long and have never really done the math or consider the benefits of Managed Services as an option. Here are the top 9 client benefits I think are best to use to drive home the fact that Managed Services is going to help them. Of course as with anything, some of these apply to YOUR business more than others and you may find that you can offer them even more benefits. Here’s a good start:

 #1 – One fixed, affordable rate for ALL the IT support you need. Say goodbye to surprise repair bills or unexpected IT expenses. Under this plan you’ll get all the computer support, maintenance and repair you need for one fixed, monthly rate that you can budget for like rent, insurance and other fixed costs.  No hidden fees, small print, or disclaimers.

#2 – You’ll avoid expensive trip fees while receiving faster support. We’ll be able to repair most of your computer problems right from our offices via a remote, highly secure connection. No more waiting around for a tech to show up!

 #3 – How does faster performance, fewer error messages, and practically zero downtime sound to you? Under this program, that is exactly what we’ll deliver.  Some parts of your system will degrade in performance over time, causing them to slow down, hang up, and crash. Our preventative maintenance and network monitoring will make sure your computers stay in tip-top shape for maximum speed, performance, and reliability.

#4 – You will have ALL of the benefits of an in-house IT department WITHOUT all of the costs. You’ll have access to a knowledgeable support staff that can be reached immediately should you have any kind of problem or question.

#5 – You’ll receive substantial discounts on IT services that you are already buying. If you need special, on-time projects done (moving your network, adding on users, etc.) we’ll give you a preferred client discount that will also save you money.

#6 – Stop wasting time troubleshooting technical problems. Let’s face it…your office manager, admin or YOU have much better things to do with your time than try and resolve computer problems, chase down vendors, figure out warranty repairs, etc. Under our plan, we’ll do it all FOR YOU.

#7 – You’ll sleep easier knowing the “gremlins at the gate” are being watched. Cyber criminals never sleep! But thanks to our 24/7/365 monitoring and on-going maintenance, you’ll have one less thing to worry about.

#8 – You’ll safeguard your data and gain the peace of mind that you actually COULD be back up and running FAST in the event of a disaster. The data on the hard disk is always more important than the hardware that houses it. If you rely on your computer systems for daily operations, it’s time to get serious about having us safeguard your critical, irreplaceable electronic information.

#9 – You’ll finally put a stop to annoying spam, pop-ups, and spyware from taking over your computer and your network. Not only are these intruders annoying, but they can introduce viruses and jeopardize the security of your network. Under this plan, we’ll take care of all of that for you.

This blog post is going to be short and sweet because it’s a recommendation for all my managed services clients and subscribers. Here’s the scoop…

We recently booked Bill Rancic to speak at our March 2011 Boot Camp.  Bill is one of the sharpest entrepreneurs I know. At the age of 23, he started a small, Interent-based company, Cigars Around The World, and grew it into a multi-million dollar national operation, of which Bill sits on the board of directors. He’s Donald Trump’s origianl Apprentice, a New York Times best selling-author of two books on business and appears regularly as a financial expert on numerous television shows.

But what I REALLY want you to watch is his new show on A&E, “We Mean Business.” Every episode is like getting a free seminar on how to be a more successful IT business owner. Even though the owners are not managed services providers, you’d have to be dead from the neck up if you didn’t learn something.

One of my favorite quotes of all time is, “You don’t get what you deserve, you get what you negotiate,” by Dr. Karrass. But here’s what I find interesting…most IT sales people and MSP business owners don’t consider the process of selling managed services a negotiation, even though the definition of a negotiation is, “A discussion intended to produce a managed IT services agreement.”

For example, when a prospective client looks at your managed services proposal and asks you if you can “do a little better on the price?” what do you do? Crumble and give in, or stand firm and risk losing the sale?

How about cherry pickers: A client looks at your IT services proposal and says they want to move forward, BUT they want to change the terms of the managed IT services agreement, extra services thrown in, different payment plans, a discount, etc. Do you change your managed services proposal to win the sale? Or does that set a precedence that you’ll fold like a lawn chair the minute they make any demand?

Or how about this scenario…

You have a good first meeting with a prospect and go back to your office to draft up a managed services proposal. When you call back to schedule the second meeting, the decision maker says he wants you to e-mail it to him prior to scheduling a second appointment because he’s really busy. Now what? Do you do what he asks or do you refuse and risk losing the sale?

To me, these are all NEGOTIATION situations. I know that most IT sales people simply give in because of fear, desperation and (more to the point) they don’t know HOW to overcome these in a way that is non-confrontational. 

In my view, an excellent negotiator gets what they want AND makes the other person feel good about it. A poor negotiator reacts with emotion and either ends up killing the deal OR making so many concessions that THEY get the short end of the stick.

So, I have a question for you (actually two):

1. How important do you think negotiation skills are to selling managed services?

2. What are some specific sales scenarios where better negotiation skills would be helpful when selling IT services?

Post your comments below and you WILL be rewarded  Here’s why…

Later this month I plan on holding a LIVE teleseminar with best-selling author and top negotiations coach, Jim Camp. Jim wrote the book, “Start With No” and is called on by multi-billion dollar CEOs, the FBI and heads of government to assist in major negotiations. Plus, he’s just an all-around sweetheart to work with.

I had Jim speak at the Boot Camp this year and his session was a BIG hit with the attendees. I also had him assist me in working through a sticky negotiation that could have resulted in a very expensive, very draining lawsuit which was COMPLETELY avoided thanks to his coaching – so yes, I’m a HUGE fan.

Because he’s helped me so much, I want to introduce him to all my subscribers. This session will be free of charge, BUT I do need some input into what topics you would like Jim to cover during this call. Could you help me by posting your comments below?

Below is a short video created by MSP Sitima Fowler talking about 3 simple sales strategies she used to not only secure a 400% increase in managed services sales but also shorten her sales cycle from 5-9 months to just 3 weeks. The corresponding workbook posted below the video will give you a bit more detail on these managed IT services strategies – BUT make sure you watch the ENTIRE video because one of the BEST strategies is right near the end.

Here’s a question that’s certain to stir up some controversy in the managed services community: What type of managed services model is the BEST managed service model overall?

Let me explain…

After spending a lot of time talking with managed services providers, both large and small, one thing is for sure: managed services contracts are like snowflakes…no two are alike. Some MSPs only offer monitoring for $10-$20 per workstation and then bill their clients an hourly, discounted rate for all on site, phone and remote support.

Some MSPs are providing an “all-you-can-eat” managed service model where clients pay $x per month per device supported, but pay extra for hardware and software. Some are providing a true cloud computing solution, and some are offering a hybrid of the all-you-can-eat managed services PLUS hardware and some software thrown in. And some are providing all of the above and recommending a particular solution based on what they think they can sell that particular client. (As I said, it’s all over the map!)

But here’s the REALLY important question: does any one managed services model give you a competitive edge — and why? Is there any one managed services business plan that serves the clients better AND provides you greater levels of profit? THAT’S what I want to know – and I’m sure there’s going to be a bit of controversy over this one, as well as some awesome discussion from those of you reading this post.

So, what’s your opinion? Post a comment below describing your managed services model and why you think that’s the BEST managed services business plan to deliver, and why some of the OTHER managed service business models are NOT so hot…and why:

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