Selling Managed Services

The managed services market is growing rapidly. However, many organizations remain unfamiliar with the concept of managed services and are therefore unsure of whether they should work with a managed services provider (MSP). Selling IT services depends largely on educating the consumer about the benefits of working with an MSP, understanding their pain points, and then making a pitch that’s tailored to their unique business needs. Here’s our guide on how to sell IT services to businesses of all sizes. 

Tips for selling managed services

The process of selling managed services will vary depending on the type of service you’re pitching and the company to which you are selling. But generally speaking, there are a few key points you should hit with every sales presentation. 

1. Focus on value: Many MSPs work on a retainer or a fixed fee basis, rather than a break/fix cost structure. For a customer who is used to only paying when something breaks, an ongoing fee can feel like a big adjustment. Highlight the value your MSP will bring to the table. By proactively working with the organization, you can save their business money in the long run. Most importantly, what is your specific value proposition? What value do you and your company add to the product that is different than anyone else? 

2. Tap into a pain point: Try to identify a problem that the organization may be facing and show the value your MSP solution can bring to resolve their issue. Working with a customer who is spending a boatload on traditional on-site storage? Explain to them how a cloud solution can reduce maintenance costs and provide the flexibility to work and collaborate remotely. Or maybe IT is a general sore spot for a small business owner who has no technical background: your MSP can take the burden off the company by taking over this role entirely. 

3. Provide some background: One of the barriers for many MSPs is that potential customers simply don’t understand what they are selling. This is in part because there are so many managed IT services you can offer. Try to break down your complex list of services into categories or tiers, setting out the business benefits or result of each service instead of the components or technical details. If you are using a complex contract or service level agreement, go through the document piece by piece to make sure the customer is comfortable with your agreed-upon terms. Transparency will build trust and help close a sale. 

4. Price your services appropriately: This is a big stumbling block for many MSPs. Overcharging or overpricing your quotes is a quick way to destroy any trust you have built with your customers. But undercharging or underpricing your quotes can lead to nightmare customers—and lead to others perceiving your services as low quality. Make sure before you go into a sales pitch that you’ve determined the fair market rate of what you plan to offer. Check out other competitors’ websites and ask customers what they can afford to budget. Whatever your price point, back it up with great service. 

5. Master the cold call: A good way to get new business is to use a referral program, but cold calling is somewhat unavoidable. MSPs that master the cold call can achieve big growth—use these tips to make your sales calls go smoothly.

• Don’t go in with a hard sell: Your initial call should be a simple introduction and a conversation to determine if there’s enough interest to set an appointment for a later discussion. 
• Research your prospective target: Start by identifying the type of company you want to serve, and only reach out to prospective customers who fit the profile. What company size makes sense? What vertical industries? What geographical locations?
• Go from “cold” calling to “warm” calling: Preempt your cold outreach with a sales letter or email introduction prior to making your first cold call.
• Set expectations: don’t try to trap a prospective customer into speaking with you. Try to be honest in your cold call and ask for permission to talk to the customer. Be upfront and set expectations at the outset. 
• Ask open-ended questions: try to get the information you need while also freeing up the prospective customer to tell you more about their managed service needs. 

Learning how to educate customers, build relationships, and be transparent in your pricing and services offered can go a long way in beating the competition as an MSP.