Why being the cheapest MSP is a bad strategy

The podcast powered by the MSP Marketing Edge

Welcome to Episode 312 of the MSP Marketing Podcast with me, Paul Green. This week…

• Why being the cheapest MSP is a bad strategy: If your marketing strategy is to be the cheapest MSP around, what you’re actually doing is setting yourself up to attract the worst clients, who create the most noise and generate the least amount of profit.
• The #1 all time secret of epic MSP marketing: The marketing winners aren’t smarter and don’t necessarily work harder than everyone else. They just get more of the right stuff implemented really fast.
• DANGER: Most MSPs have confused messaging: My special guest is an expert at making messaging simple. Your eyes are about to be opened as to how confused messaging is killing your MSP marketing efforts dead.
• The Marketing Minute: Don’t miss this simple email signature marketing idea that can make a big impact.

Why being the cheapest MSP is a bad strategy

If your marketing strategy is to be the cheapest MSP around, then you’re setting yourself up for a world of pain. Lots of MSPs do this because when you’re not very good at marketing, which most MSPs aren’t, it just seems like the easiest thing to do… offer a good service, deliver it at a good price. But what you’re actually doing is setting yourself up to attract the worst clients, who create the most noise and generate the least amount of profit.

If you don’t today, have the confidence to put up your prices, to be the most expensive MSP in your marketplace, let me tell you why you owe it to your existing clients, your future clients, yourself and your family to do this.

On the surface, being the cheapest MSP feels like a good idea because everyone likes a bargain, but being the cheapest is not a winning strategy.

It attracts completely the wrong kind of clients. The ones who are constantly haggling, they’re always looking for shortcuts and they just don’t value what you do for them. In fact, they’ll leave the moment that someone else comes along who’s a pound or a dollar cheaper than you. And that is not really a foundation that you can build a profitable stable MSP on.

So instead, you kind of want to be at the other end of the scale, the most expensive MSP in town. Now, I know that you might maybe have tensed up when I said that and you might be thinking, Me, the most expensive, no way. I don’t want to be that. I don’t want to do that. But listen, just hear me out on this. The MSPs who charge the most are often the ones who are seen as the safest choice. It kind of seems crazy, doesn’t it? But actually, higher prices signal higher value. They signal better service, they signal more stability, more reliability, and guess what? The best clients, the ones who are really serious about their businesses and protecting their businesses and growing them with a proper partner, they want that reassurance. They don’t just want to spend money on a service and spend as little as they can. They want the best quality because they want a genuine partnership from someone that offers a very high quality of service.

So how do you do this? Well, there are two main approaches that you can take overt and covert. So overt is where you’re very upfront about being premium. In fact, you build your whole brand around expertise, trust, and high standards. You’re never apologising for your price, in fact, you’re proud of it. But then the opposite is covert because this is a little bit more subtle. And in this with being covert, you don’t shout about being the m...