Video Playlist: MSP talk tracks on how to handle objections like: "We don't spend that much on IT right now. We don't do long-term agreements. Who owns the hardware? We want to think about it."
Selling managed IT services is different than many other sales, but like any sales process, it comes with objections from prospects who are considering your services. Instead of shying away from objections, we encourage MSPs to anticipate and welcome them! These objections can spark more thorough conversations, and can be positive signs of engagement or interest from prospects. If handled well, it can increase your closing rate to winning your next managed services deal. In this blog, we share the 4 most common objections MSPs can expect when proposing their managed services offering and talk tracks to advance your sales.
Service Provider: I understand why you think that and you are partially right. Although I didn’t dig into your current IT expenses of what you did spend on parts, labor, license fees, etc.; let me show you what you have spent in other areas by not having our services. (Excessive Spending Slide in Proposal Presentation)
Service Provider: I understand. A lot of our current clients expressed similar concern before coming onboard with us. Their main fear was getting stuck with an IT company that wouldn’t deliver the level of service they promised when the agreement was first signed. Is that your concern as well?
Prospect: Yes, that’s exactly right.
Service Provider: You can rest assured that we have Termination for Cause within our agreement that simply states that if we fail to perform to the level we agreed to, and then you give us a written letter that states the issue and allow us 30 days to fix the problem. If we can’t, then we will let you out of the agreement.
Prospect: We have a strict policy to not sign any 3-year agreement.
Service Provider: We are going to be investing heavily in the early months of this agreement to get your network fully stable and on a safe and supportable technology stack. As a result, we need a minimum commitment in order to recoup this initial investment. That said, we can sign up for a year at a time. The only difference is we will be increasing the monthly price by 20%.
Service Provider: We own the equipment
Prospect: We would like to see the option where we own the equipment
Service Provider: Ok, I understand. If you wish to make the necessary investment of $XXXXX then that would lower your monthly amount to $XXXX per month. Now, there are definitely some advantages by having us own the equipment. First off, this entire agreement can be written off as an operating expense vs. a capital expenses. Second, every three years, our company will refresh the equipment with whatever is new on the market to ensure that we never find ourselves with a network in this bad shape again. And third, all Microsoft licensing will be upgraded at no extra charge as new versions come out. So, as you can see the benefits far outweigh the extra $XXX you would save.
Service Provider: I understand you need some time to talk amongst yourselves on the challenges we uncovered for you. Just to be clear, are we OK with the proposed solution for supporting your company? (Pie Chart Slide in Proposal Presentation)
Service Provider: Ok great. How about the new proposed network we engineered for you? Are there any questions on this or are we good? (Technical Solution in Proposal Presentation)
Service Provider: Ok, so it is safe to say that we need to think about the monthly investment, which I completely understand and obviously having myself in the room is the conflict. So might I suggest I step outside of the room for 20 minutes to give you the time to discuss amongst yourselves, or shall we set up another time to meet again and answer any questions??
Prospect: Let’s set up another time!
Service Provider: Ok great. I am open [date/time]. I will send you the invite, unless another date is better?
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Hannah O'Donnell, Director of Sales, is responsible for building the strategic vision for sales and marketing while providing business planning, education, training, and sales assistance to partners. She is also responsible for originating new partnerships for Collabrance. She was recognized as one of Women of the Channel by CRN, a brand of The Channel Company in 2019 and 2020. Hannah started at Collabrance in 2013 as a Strategic Business Advisor. In 2014, Hannah was nominated by her peers and won Rookie of the Year, and in 2015 became a member of the 100% Sales Achievement Club at GreatAmerica. Hannah earned her business degree in Marketing and Management Information Systems from the University of Iowa.