Go From Big Revenue Break-Fix To Big Profit Managed Services

By The Business Solutions Network

After switching to managed services and changing its sales processes, this MSP’s (managed services provider’s) profits grew by 300 percent.

If you compare VAR-turned-MSP National Networks’ business four years ago to now, you might mistakenly think the company is on the decline. For example, in 2011 it did $9.2 million in sales with 50 employees, and this year it’s projecting $5 million in sales with 32 employees. Sounds like a downturn in business, right? Just the opposite, says Shawn Maggio, the owner of the company. “Our primary revenue source used to be large cabling projects and break-fix services, which yielded only a low single-digit profit margin. Today, we’re focused on selling managed services, which is more than four times as profitable and comes with much less drama.”