Additional Managed IT Services Revenue Opportunity for Service Providers
When you have the ability to sell an assessment based on the value of the discovery, here are the results you can obtain if you choose to start charging a fee.
Some Service Providers hesitate to charge a prospect for a Network Assessment, fearing that the cost won’t allow them to get their foot-in-the-door, and close the sale. This is a missed opportunity for Service Providers to maximize their revenue, and overall success in Managed IT Services.
PERRY proTECH made a decision to start charging for Network Assessments that resulted in generating more revenue, as well as improving other business challenges they were facing.
CHALLENGES IN A MANAGED IT SALE:
Unpaid labor time
Little sense of urgency
Objections gathering information
Decision maker not participating
PERRY proTECH felt CHARGING FOR NETWORK ASSESSMENTS would help identify a true prospect, allow more time for lead tracking, and contribute to the bottom line.
Talk tracks to positioning the fee to prospects PERRY proTECH explains to their prospects that they care about their business, and are not just trying to sell them something. The Network Assessment is an investment to fully understand the prospect’s current technology environment, and accurately determine an effective solution. This includes dedicated time and resources to evaluate the prospect's current state of network, security needs, and performance issues.
PERRY proTECH experienced immediate *results after charging prospects for their network assessments!
Here are a few of the benefits:
2.5X's MORE SALES
Better leads improves close ratio.
2 Closed Deal
5 Closed Deals
More Sales = 5 Closed Deals (Assessment fee) / 2 Closed Deals (no fee) = 2.5 More Deals
$2000 ADDITIONAL REVENUE
Cost avoidance and revenue opportunity.
Average size of environment = 20 users
Average costs of network assessment = 8 hours of labor = $1,000
Average costs of network assessment with a fee = $2,000 ($100 per user)
Extra Profit = $1,000+ per assessment
33% FASTER SALES CYCLE
Stronger sense of urgency.
Average time to close a sale: 3 weeks
Average time to close a sale with assessment fee: 2 weeks
Time Savings = 3 weeks - 2 weeks = 1 week per deal
How can this help you?
Identify Qualified Prospects: PERRY proTECH can determine if a prospect is interested in their solution offering, instead of wondering if someone is just using them to compare services, or negotiate a lower payment with their current provider. PERRY proTECH now spends time closing the sale with qualified leads, instead of providing valuable information to unqualified prospects.
Higher Close Ratio: PERRY proTECH discovered that prospects who make the investment in paying for a Network Assessment, are more likely to see the value in paying for their solution resulting in more closed sales.
Gain Additional Profit: Charging for assessments helped PERRY proTECH capture revenue for services they were already doing. It offset their bottom line costs, and turned into an additional profit line.
Shorter Sales Cycle: When a prospect invests money in a Network Assessment, it becomes a higher priority to them and to you, creating urgency to stay on top of the sale. With more qualified prospects, PERRY proTECH uses their time more efficiently on better leads which shortens the sales cycle.
Easily Obtain More Information: Charging for assessments helped PERRY proTECH get time with decision makers. As an investment, prospects were more open to have conversations and share the information needed for cost justification.
has gone up since charging for network assessments. We have gained time and
revenue, by identifying quality clients who see the value in paying for
our Network Assessment fee, and the solution we provide.”
– Chris McVety, PERRY proTECH
Contact your Collabrance Strategic Business Advisor to properly price your Network Assessment fee(s) and how to position the value of them to prospects.