Article | August 26, 2013

Priced To Sell: 5 Insights To Finding The Right Price Strategy For Your Managed Services Business

Source: Intronis - MSP Solutions by Barracuda
Rob Merklinger, VP of Sales, Intronis

By Rob Merklinger, VP of Sales, Intronis

There are two primary reasons VARs make the difficult transition to sell subscription-based IT services. The first reason is the hope of earning steady, predictable income, which will allow them to be more strategic in their business decision-making, as opposed to focusing only on the latest IT emergencies. The second reason is the desire for higher profit margins. One of the biggest obstacles standing in the way of achieving those goals is figuring out the right pricing model. Working with hundreds of MSPs over the years, I’ve noted a few winning strategies shared by successful partners. Even though the exact pricing will vary based on the location of your target audience (e.g. rural, suburban, major metropolitan), the following principles can help you make sure you’re setting your managed services pricing appropriately.

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