One thing everybody wants it to get more out of less. I am a big proponent of this. I like to get more money out of less work and more work done in less time. When running a business, time is money. When running a service based business, time is everything. There are lots of things that pop up during the day that can completely ruin your schedule and in some cases, even your paycheck.
As an MSP, loyal clients are the lifeblood of your business. Without them, you don’t have a business. As a managed services provider, one of your primary goals is building a profitable client relationship. This is what keeps your clients from canceling your contracts and hiring others for projects.
Do you just want your clients for their money? I don’t think you should, and even if you do, that is the last thing you want them to think of you.
You want to under-promise and over-deliver in every scenario. When you go above and beyond your client’s expectations, they perceive this as getting more “bang for their buck” and are more likely to come back and also recommend you to their peers. Continue Reading
I have devised a way to convince them that they are being penny wise & pound foolish.
Say your average employee costs your client $35.00 / hour.
Lets also say they work 2080 hours a year.
So you could get that employee a pretty fast workstation for well under $2000.00 but in this example, lets use $2000.00 for a really fast workstation.
One of the questions that has been asked to me the most is how much to charge for managed services.
I feel this is a greatest hurdle IT providers face while making the transition to managed services. What it really comes down to is that there is no easy answer or formula to pricing managed services or product or service for that matter.
The end result for your MSP in most cases is make the most money possible for the least “risk”. By “risk”, I refer to the accountability to fix problems if they do occur. Some clients may pay you $2000.00 / month to manage their network when another client with the exact same network may only pay you $1000.00 / month.
What you need to figure out is if it is worth $1000.00 / month for you to accept that responsibility to manage their network.
I enjoy coming up with new ways of doing things, designing systems and seeing them come to life. Of course, projects are also very lucrative. They are a nice boost in revenues for the month.
Everything from specing the project to installing it is a blast for me. You get to come up with new methods of doing something, install cool hardware and software and you always have something interesting to talk about with friends and peers.
If only every project were like that. Spending hours, weeks or months on a project gone wrong doesn’t sound too appeasing, does it? I think we have all had a project like that, something that ends up costing you a lot of time and money. A bad project can even cost you a client.
So how do you ensure your projects get completed on time and on budget?
If you are trying to limit the number of hours you work every week, you need to make sure you are charging a fair price for your services. By setting your rate too low, you are guaranteeing you are going to work more hours to earn a living, never less make a profit. The math is simple, if you increase your rates, you can work fewer to make more money.
There is an old saying I always need to remind myself of - “if you are booked solid, you aren’t charging enough!”.