onlineuniversalwork

Thanks for your thoughts on ROI calculators, Lane, and your mention of MSP University. As our members and readers of our publications know, we have been developing and training the channel to use value-based pricing tools since 2005, and make available both an MSP and client-facing ROI calculator on MSP University’s tools page.

Our tools are unique in the fact that they take into account the lost productivity and opportunity a business owner experiences due to downtime and having their internal staff manage their infrastructure vendors and do “light-weight” IT work to “keep things running” (normally making things worse rather than better, before contacting their existing provider), and are built to reinforce the value of the MSP’s services; as well as cost savings over time, instead of being based on a per-device pricing model.

These are the methodologies we used to great success as one of the first “pure-play” MSPs in Southern California, and this success and the feedback from users of our tools validate this approach – when used properly. I qualify this statement, as an ROI calculator demonstration is only a very small component in an effective 7-step sales process, and not meant to be the primary focus of this process.

In order to close Managed Services business successfully, the sales professional must effectively execute each step of the 7-step sales process in sequence:

- Preparation
- Warm-up
- Qualifying
- Presentation
- Overcoming objections
- Closing
- Follow-up

If effective techniques for successful execution in any of these steps are not conducted properly, it will be much more difficult to close an opportunity with a prospect. The ROI calculator demonstration falls under the “Presentation” phase of the 7-step process outlined above, and understanding this reveals that it is really less than 1/7th of the total activity that must be conducted in a successful sales process (this step is also where the value of all of the services offered by the MSP are explained to the prospect as well), and the sales professional must become adept at conducting each and every one of these 7 steps effectively in order to maximize sales success.

Another item to note is that it will take several visits to conduct each and every one of these steps (we standardized on 3 appointments as an MSP), and the first three steps are repeated during each of these visits in the proper sequence. Remember – we are building relationships beginning with the very first sales appointment, and must reinforce and strengthen this relationship during every engagement – and the way we conduct ourselves during the sales process sets the proper expectation with the prospect in terms of how we will engage with them after the opportunity has been closed.

Thanks for the opportunity to put these thoughts into perspective.

Erick Simpson
MSP University
http://www.mspu.us

Some of the best education comes from the vendors themselves. Yes, vendors sponsor this site so I may have a bias.

But let’s be honest: All associations, media brands, etc., are influenced by vendor content. Most association conferences have “pay for play” sessions hosted by vendors. MSPmentor’s own webcasts are sponsored by vendors. And MSPs themselves are voting with their wallets by attending vendor-led educational events.

Not all of the vendor-generated content is good. Buyer beware. But to state “do not rely on your vendor for education” is a disservice to the industry. Some of the best educators in the market are working for the vendors…
-jp

Have you looked at the Kaseya ROI calculator? This is basically a tool to help them sell more licenses. It shows a VAR how they can make money using Kaseya? Really? They put out a press release to announce that they had a new sales tool to help them close more business?

Unfortunately it seems that they are not the only vendors with this type of ROI calculator. I have been building an ROI calculator for our partners that focuses on the CUSTOMERS ROI of managed services. To get some ideas on this I looked at what the vendors we use have and out of 3 vendors I looked at 2 of them had ROI calculators to show me how much money I could make using their product, only one had an ROI calculator that showed how customers can save money using their product (thanks for that one MX Logic).

In our current market with so many VARS starting to sell managed services our price points are getting driven down by people that do not understand the value of the solution. These VARS are selling managed services on a cost+ markup and not even marking the services up a respectable amount. I have seen several competitive proposals in the past couple months with unlimited desktop and/or server support (including onsite) for less than $30 a device?

We are at a critical time where our industry is really gaining ground. What we need is for these vendors to start teaching their resellers the VALUE and ROI that their CUSTOMERS can enjoy from managed services. NOT how much money they can make.

We need to get away from selling features and benefits and start moving to a more consultative sales model. Where we understand the customers needs and the give them a solution that meets those needs. We can no longer just send over a quote (which I see all to often), we are not selling hardware or software we are selling solutions.

My final thought on this. If you are a VAR that is getting into managed services, do not rely on your vendor for your education. There are many organizations that can help you with this to name a few; CompTIA, MSP Partners, MSP Alliance, Service Leadership, Transformation Strategies, Virtual Administrator, MSPSN, MSP University, and of course this site.

Lane Smith
Do IT Smarter
http://www.doitsmarter.com