Have you wondered how you could raise your prices now and have clients actually be happy about it?
Our MSP business owner members have been so successful at raising prices, ethically. I’ll explain…
You have to change up your service offerings. Then, simply go back to your managed services clients and let them know that they were on last year’s contract, and that the new year’s contract has changed and what about it has changed.
You have to let your customers know that you had to upgrade them.
Your stack now has advanced cyber protections, compliance, better back up solutions, etc. You have to refresh the old agreement. Go back to these people and let them know you have to revise the contract, and you schedule a meeting to go over everything with them.
One of our members, who runs a very successful MSP, simply went back and said to his clients “Hey, you’re on our old plan. Here’s our new one. You’ve got to sign this” … and they did. Better yet, they were happy about it because now they were getting extra, necessary services included like multi-factor authentication. You should be adding services to their plan. Services like anti-phishing, employee testing, and education around cybersecurity (because that’s now being required for insurance).
You need to also look into cyber liability insurance.
Another thing you need to do is go to your insurance professional, or find somebody in your market who is selling crime and cyber liability and speak to them about this… There’s recently new regulations that just came out where in order for a business owner to even get this kind of insurance. There are certain things the owner has to verify. You can go to your local insurance professional and work with them to find out what the regulations are.
Also, if you have break fix customers, you need to schedule a meeting and let them know you can’t keep operating like you have been. Let your customers know you have to put certain protocols, protections and monitoring in place. Then explain, and sell them a basic managed services plan.
We have a client that has grown himself to a $5.5 million/year MSSP at 40% margins. And it was all based on how he packaged and priced. (5 Top MSPs Reveal Secret Pricing Strategies That You Need To Know)
You need to raise your prices and you can do so elegantly, and ethically by simply changing up the overall service offerings you have to include what you know your clients need to have.
For more ways to build financial strength in your MSP, get more leads for your IT services business AND get more managed service clients, grab this free guide below!