As margins become smaller in hardware and software sales, many IT resellers are looking to make the move to develop into a Managed Service Provider (MSP). Managed services are the proactive monitoring and problem resolutions of a client’s infrastructure. The transition from an IT Reseller to a Managed Service Provider can have many hurdles to overcome.
Being an MSP means becoming a trusted advisor to your customer base and helps to build customer relationships, creating more opportunities to communicate with your customers. Our IT reseller partners tell us that they have seen an increase in hardware sales since adding the MSP offerings to their portfolio. This tends to happen because buying hardware from the company that is going to both install and manage the device is the easy option, of course your customers will still need to stick within a budget but the added value is worth paying a little bit extra for.
With the subscription-based consumption model of managed services, you can better forecast your future income and have more predictable cash flow projections than with hardware sales.
Don’t reinvent the wheel
Efficient procedures, great technicians and a properly setup and configured RMM tool are just a few of the components required to begin setting up a profitable MSP. Setting up and maintaining these components is a constantly evolving task, we discuss in our ‘Should you outsource your MSP help desk’.
Create a sales centric MSP
Customer service is of course important but also largely depends on the helpdesk in order to be successful which as an MSP, means it is important to refocus your existing sales resources.
Build a good sales deck to bring on new clients, a sales deck helps you structure your pitch to potential new clients. Addressing their hopes, concerns and needs that the ever-changing world of IT brings.
Adding optional management to all hardware quotes is a great way to let your existing customer base know that you have managed services in your portfolio.
Run marketing campaigns to talk about your new managed services, as well as marketing to potential new customers, be sure to include your existing customer base that you have already built up trust with.
Potential customers are much more likely to buy your services when they speak to a knowledgeable and personable technician, this gives customers the confidence that they are both purchasing the right products and working with a company that will install and manage correctly.
As an IT reseller, you already have a wealth of clientele that contact you when they need new IT equipment and software, for advice on which products to purchase. Adding MSP services to your portfolio allows you to build further on this trusted advisor status, after all, who better to advise on which hardware to use than the company that manages it.
Our second part on How to turn IT Reseller business into a Managed Service Provider in 2017 part 2 will be out next month!
Contact our team now and leave a message on our website or on 0203 764 7688