Video Above: CharTec and Collabrance discuss how MSPs can overcome common sales objections to win more deals.
MSPs have expressed time and time again that one of their top business challenges is “sales and marketing.” In a webinar with CharTec, we shared top MSP objections and ways to help you increase your sales, build rapport and differentiate from your competition. In this blog, we also briefly review the sales stages prior to you disclosing your pricing. For specific MSP sales objections, how to deliver your pricing after the initial steps are properly implemented, we also encourage you to watch our video!
An MSP is different than most typical sales processes, sometimes longer, sometimes requires more people, energy and effort. Why is it so important to be persistent and patient in an MSP sale?
An average managed services deal can check in around $2k MRR equating to $72k over a 36 month contract.
We expect this managed services deal to grow roughly 50%
over this 3 year term through organic growth, projects, and necessary upgrades
due to an ever increasing cybersecurity threat. Sprinkle in one or two
referrals because of how well we take care of our customers and… the lifetime
value of this MSP deal can check out at well over
$250k! We can keep crossing
our fingers, OR we can study “objection handling” and master our craft to
increase our MSP sales.
Palms are sweaty. Mom’s spaghetti. You know the drill. Its game day baby and you’ve spent the past week and a half preparing for this moment. Throughout your MSP sales process you’ve successfully:
Not only did you quantify your results, but you also tied the prospect’s issues to real world business implications. Why is this so important? This is a differentiator so the decision maker(s) sitting across from you don’t glaze over from the standard “technical mumbo jumbo” they’re accustomed to hearing from your MSP competitors. During this stage, you’ve primarily been asking thoughtful questions for a better understanding of your prospect’s needs.
After checking off the 5th “prerequisite of an MSP sale” you throw on your sales cap and get down to business. The good news? Your presentation goes as planned. You addressed their problems. Killed the alternatives. And revealed the carefully crafted MSP solution literally everyone’s been waiting for weeks to see… as well as the price.
Now what? (This is typically where believers and non-believers alike, cross their fingers and throw strategy out the window.) Should I blink? Fill silence with UM’s and IDK’s? First person to talk loses? NO!
If we’ve done our job correctly (minus some very extreme examples), we can be confident the objections we run into upon asking for their business will fall into 4 main buckets:
So here’s the question: If we know what the most common objections are each and every close… then why aren’t we implementing disciplines like “seek to understand” to identify what is motivating the particular objection? And once we know what’s motivating their objection; why are we not well versed in proactively handling the particular objection?
Not all objections are bad, in fact you should encourage questions and as a great salesperson, certain objections should be openly welcomed because of the customer’s interest.
Now… It’s time to ask for their business with confidence and close your MSP sale. How?
What is the best way to deliver the price to your MSP prospect? What should you do and not do after delivering the price? Listen to our video with CharTec on how you can overcome MSP sales objections.
(Condensed podcast version below).
Study the information. Practice the MSP sales talk tracks. And if all else fails, and everything you’ve read above feels foreign… attend our Sales Simplicity Seminars for two FULL days of dedicated sales training specific to the MSP channel.
Click here to download mp3 file.
Jake Wagner, an Account Manager for Collabrance, is responsible for sharing, coaching, and training partners on Managed Services best practices. Jake is a great resource providing value to help partners achieve greater success in their business. Jake graduated from the University of Dubuque with a bachelor’s degree in Business Marketing.