This is the second post in a series – the first post can be found here.
In my previous post, I told you that the first step in getting higher fees for your managed services is to Be Known.
Now, that isn’t just a “fluff” recommendation. Research from RainToday – a leading publisher of sales and marketing information – shows that professional service providers of all types that have better brand visibility than their competitors in their local markets are consistently able to charge prices 20-50% higher than the competition. Buyers are more comfortable and confident with brands that they recognize, that have been established for years, and that seem to demonstrate success via their marketing activity.
You must market your brand consistently and actively over time.
The second piece of advice I have for managed service provider to command higher fees is to Get Confident.
One of the hardest thing most salespeople (or business owners acting as salespeople) do in the sales process is talk about price. The problem is this:
If you are not confident in your prices, nobody else is going to be either!
If you can’t look a prospect square in the eye, tell them what you are going to charge them, and confidently justify why you are going to charge them that much – you will have to learn to accept lower prices, but that is what you will continue to get.
No prospect is going to argue that you should charge them more! Most are going to argue that you should charge them less – that’s their job.
When they ask…you may waffle. If you waffle, they will eat you alive. You must learn to be confident! When they sense that confidence, you will literally transfer confidence to them. They will know that you know what you are talking about, that you are a professional, and that you will stand your ground.
So, how to get confident? Here are my suggestions:
- Realize that successful competitors in the marketplace ARE charging more than you are – and doing just fine, thank you. If you are reading this post, and your are struggling with prices, I can assure you that you are charging significantly less than the most successful players in the market. If they can do it, YOU can do it.
- Deliver a level of service that you are absolutely proud of. Bend over backwards for your clients. When you do this, you’ll be confident enough to demand and get higher prices.
- Establish and refuse to budge from a “No Discounting” policy. Learn to explain that “you can’t deliver the quality of service our clients expect unless we are charging enough to be able to staff and operate our business properly”. A good client will understand this. If they don’t, you don’t want them as a client.
- Get some sales training! I can’t believe the number of MSP’s I talk with each month that have had no sales training, aren’t getting sales training, and oftentimes don’t even think they need sales training. If you are not continuously sharpening your skills around sales conversation techniques, you are falling behind every day. Good sales training teaches you how to position your service prices and defend them from attack.
In the end, nobody can give you confidence - it’s up to you to create your own confidence.
When you do, your clients will respond in kind, and you will be able to sell at higher prices.
Mike
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