Article | November 15, 2012

Bundling Services For Value And Margin

Source: Continuum
Steve Ricketts Continuum VP Marketing Photo

This article by Steve Ricketts, VP of Marketing at Continuum discusses the benefit of bundling managed services and the likelihood that users will adopt additional managed services from the same provider once they gain experience with the first service. However, even though end users are likely to buy additional services, this isn’t a guarantee of profitability or sustained success for providers. Steve notes, “Offering individual services can often reveal too much about your pricing. Savvy customers could use that information to either pressure for concessions or shop for alternative, lower-cost providers.”

To avoid this situation, managed service providers should look to bundle their services into a single package. This allows you to combine services with differing margins and values into a package with a consistent margin for you and high value to your customer.

By bundling services you make your offerings easier to understand for your customers and don’t force them into making decisions about services they may be unfamiliar with. Combining multiple services together and creating unique product branding for each bundle can make your offerings look and feel like one service.

Download this article from Continuum below for more information about and benefits of bundling managed services.