3 big pricing mistakes that kill MSPs’ sales

The podcast powered by the MSP Marketing Edge

Welcome to Episode 304 of the MSP Marketing Podcast with me, Paul Green. This week…

• 3 big pricing mistakes that kill MSPs’ sales: MSPs inadvertently make these blunders with the way they price up their offering and it often kills sales. Here’s what to do about it.
• This video MUST be on every MSP website: Videos on your website are really important. And a testimonial is the single most important type of video that could help a prospect decide to sign a contract with you.
• The truth about SMS marketing for MSPs: Every single business owner has a mobile phone and yet not many MSPs are using that to their advantage. My guest is an SMS marketing expert and is going to tell us whether SMS text messaging is a viable marketing tool for MSPs.
• Paul’s Personal Peer Group: Do you have trust badges on your website? Find out how to use them to get the most credibility for your MSP.

3 big pricing mistakes that kill MSPs’ sales

Getting new clients for your MSP is hard enough, so you should do everything you can to avoid making mistakes, right? Often I see MSPs inadvertently making blunders with the way they price up their offering. It’s a complicated subject with many traps you can get caught in. So let’s look at three common price mistakes that MSPs make that are killing sales.

Let’s talk about something that makes a lot of MSPs uncomfortable… pricing. It’s not the most exciting topic, but wow, it can make or break your sales. I’ve seen so many great MSPs – really solid, technical, brilliant businesses run by brilliant people – struggling to grow simply because they’re just making the wrong moves with their pricing. So let’s fix that.

These are the three big pricing mistakes that can kill your sales, and of course, how to avoid them.

Mistake number one: charging too little because you’re scared of losing the deal, and this is so common. Have you done it? You’re sat in a sales meeting, the prospect starts questioning your price and suddenly you’re talking yourself down. You say that you think you can find a way to shave some money off the price by reducing the package, or maybe you can find them a discount. But by doing this, you’re kind of leaving money on the table just because you want the client to say yes. Here’s the thing though, when you undercharge, you actually scare off the best clients. They kind of think, why is this MSP so cheap? What corners are they cutting? Plus, you’re setting yourself up to resent the work later on when the numbers just don’t add up. So here’s what you should do instead… price confidently, know your value. If you’re delivering 24/7 monitoring, a great help desk and really strong security, don’t price it like you’re just fixing printers on an ad hoc basis. That’s crazy.

Mistake number two: making pricing complicated. I’ve seen some MSP proposals that are like three entire pages of line items. So here’s your base support, this bit’s extra, this is going to cost you this, we forgot to include this. It’s just so confusing. And the problem is that confused people don’t buy. So what you do instead is you bundle things, you create clear packages. You could call that bronze, silver, gold. You could call it something else, it doesn’t really matter what you name it. But the point is that when it’s all put together and prospects can look at it and go, Oh, right, yeah, I see. So we’ve got this or we’ve got this, which is a bit more, or we’ve got this, which is even more, do you know...