pricing and packaging for msps

© 2015 N-able Technologies, Inc. All rights reserved. 1

MSP

Packaging and Pricing

Strategies to dramatically increase sales and profits


Webinar details

? REC

Length: 60min Questions welcome any time

Recording and slides available

next day


On today’s Webinar

Presented By:

Gary Pica

President, TruMethods

David Weeks

Channel Sales Manager, N-able


Giving service providers the insights we’ve gained from

working with over 5,500 MSPs

www.trumethods.com

Average MSP

• Inconsistent MRR growth

• AISP under $100

• Leverage of $100,000 / employee

• Under 10% net profit margins

• Create very few jobs

© TruMethods, LLC. 2013 - All rights reserved

www.trumethods.com

World Class MSP

• New MRR at the right price EVERY month

• AISP $120 - $160 range

• Leverage of $150,000 or higher

• 25% - 35% net profit margins

• Create opportunity for all employees


www.trumethods.com

Annual Service Revenue with 12 employees:

Copyright 2013 TruMethods, LLC

Average MSP $1,200,000

World Class $1,800,000

www.trumethods.com

5 Qualities of a World Class MSP

#1 Business Planning

#2Packaging and Pricing

#3Sales Focus

#4Be process

driven

#5Command


www.trumethods.com


Packaging Overview

• Your support offering

affects three key areas:

– Your ability to sell new

customers

– Your ability to deliver

quality service

– Your profitability as you

grow your customer base

www.trumethods.com

© 2013 TruMethods, LLC. All rights reserved

How do you deliver the end result?

Define “Your Super Power”

• What is your unique process to deliver value?

• How do you impact your customers business?

• How will you institutionalize your knowledge

and experience?

www.trumethods.com

Are you a grocery store or bakery?


www.trumethods.com

Are you a reseller or MSP?


• Remote support

• On-site support

• Virtual Servers

• VDI

• Remote Backup

• HaaS, IaaS, SaaS

• Desktop

Optimization

• Disaster Recovery

• Hardware

• Licensing

• Patch Mgmt.

• Anti-Spyware

• Anti-Spam

• Anti-Virus

• Technology

planning

www.trumethods.com


What to Include?

• Patch

• Spy

• Spam

• Virus

• Desktop

optimization

• Backup

• DRP

• Technology

planning

• Budgeting

• Remote support

• On-site support

• Network Admin

• 24x7

• How to questions

• MAC’s

• New workstations

• Monitoring

• Remediation

• Hardware support

• HaaS, SaaS

• Software

upgrades

• Project work

• Supporting users

at home

• 3rd party App

support

• Best practices

• Documentation

• Hosted app’s

• Hosted servers

www.trumethods.com


Typical “Managed Service”

Support

Remote Support

(Helpdesk)

Onsite Support

Basic Automation

Monitoring

Anti-virus, spyware

Patch management

Does this define

“Your Super Power”?

www.trumethods.com


The Right Offering

Support

Remote Support

(Helpdesk)

Onsite Support

Centralized Services

All Basic Automation

Services

Hosted Applications

Hosted Infrastructure

Proactive Network

Administration

Proactive Administration

“Your Super Power”

Client Relationship

Technology Consulting

Technology Planning

Budgeting

Business Relationship

www.trumethods.com


• Quality support is important

• All MSP’s say they are good

• How can you differentiate

yourself?

Support

Remote Support

(Helpdesk)

Onsite Support

Roles and Responsibilities

www.trumethods.com


• Centralized services

• RMM

• Automation

• Cloud features

• Everyone has access to the

same tools and technology



All Basic Automation

Services

Hosted Applications


www.trumethods.com


Proactive Network

Administration



Client Relationship

• Build “Your Super Power”

• Develop your “recipe”

• Develop technical standards

• Technical Alignment


www.trumethods.com

Standards

• Backup

• Windows Servers

• Anti-Virus

• Desktops

• Power Management

• Wireless Access

• Patch Management

• Firewalls

• Routers

• Switches

• Email

• LOB Applications

• Cloud Services

• Disaster Recovery


www.trumethods.com

Standards

• Example: Password Policy


www.trumethods.com

Technical Alignment

• Don’t leave room

for interpretation

– Yes or No

• Provide detail

where appropriate

• Be careful what

you “fix” in this

stage


www.trumethods.com



Technology Planning

Budgeting


• Known as vCIO

• The business impact of

technology

• Planning, budgeting,

strategy

• Leverage Network

Administration


www.trumethods.com

Business Impact

• How could

misalignments

affect their

business?

• What do we

recommend?


www.trumethods.com

Client Strategy


www.trumethods.com


The Right Offering

Support

Remote Support

(Helpdesk)

Onsite Support


Monitoring

Patch Management

Anti-Spyware & Anti-Virus

Spam Filtering

Support

Remote Support

(Helpdesk)

Onsite Support


Basic Automation

Hosted Applications


Proactive Network

Administration



Client Relationship


Technology Planning

Budgeting


www.trumethods.com

Your service offering

• Focus on the end result

• What results do you want to deliver to EVERY client?

• What unique process will separate you?

• Bundle services

www.trumethods.com

Managed Services PlatformRemote Services Technology

| Product Family

MSP AnywhereRemote access & support

MSP ManagerTicketing & billing

N-centralMonitor. Manage. Automate.

Connect in seconds

Cross platform

Support mobile devices

Session transfer

Session recording

Performance dashboard

Ticket management

Customer portal

Password management

Technician scheduling

Customer billing

Accounting integration

Device monitoring

Health & performance

alerts

Drag & drop automation

Integrated patch, AV,

backup

Integrated remote control

Business reports

$49 USD / monthper concurrent user

$49 USD / monthper concurrent user

Starting at

$499 USD

/monthUnlimited sessions

300 devices

Unlimited tickets

Unlimited billing

Monitor 100 devices free

Free business coaching

www.trumethods.com

SIGN UP FOR A FREE TRIAL

N-ABLE.com

The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-able Technologies, Inc. and its affiliates, are registered with the U.S. Patent and Trademark Office andthe Canadian Intellectual Property Office, and may be registered or pending registration in other countries. All other N-able trademarks, service marks, and logos may be common law marks,registered or pending registration in the United States, Canada, or in other countries. All other trademarks mentioned herein are used for identification purposes only and may be or aretrademarks or registered trademarks of their respective companies.

http://signup.mspanywhere.com/signup/?id=QLxMkPQzNR


www.trumethods.com

The right service offering

Combine ingredients with your recipe

to create the right service offering


Everybody (Ingredients)

• Support

• AV / AS

• Monitoring

• Back-up & DR

• Helpdesk

• Cloud services

Your Super Power

(Your recipe)

• Process

• Resources

• Best Practices

• Standardization

• Technology consulting

www.trumethods.com

Your service offering

• Define your “Edges”

• Limit choices and

options

• Remove entrance

barriers

www.trumethods.com

Good packaging should…

• Explain the reason a prospect should buy

• Make it easy to understand the end result

• Align our offering with service delivery

• Clearly separate our results from others

• Eliminate price as an objection


www.trumethods.com


Pricing Guidelines

Guidelines

• Keep it simple

• Don’t share your psychosis

• Use AISP as your guide

• Project the model

• Your price is not too high!

www.trumethods.com

Example

ExampleAvg.

Seats

Avg.

AISP

Avg.

MRR

MRR with

50 clientsSeats

Right

Customers-

Right price20 $140 $2,800 $140,000 1000

Right

Customers-

Wrong Price20 $95 $1,900 $95,000 1000


www.trumethods.com

Picanomics

Cost per Month per Seat

Support $9.38

Centralized Services $9.50

Network Administration $11.60

vCIO $6.31

Total: ~$36 / Month / Seat

www.trumethods.com

Picanomics

What if your AISP is lower?

AISPTotal Costper Seat

Gross Margin

Gross Margin %

$125 $36 $89 72%

$100 $36 $64 64%

$85 $36 $49 58%

www.trumethods.com


Leverage

• Relationship between an hour worked

and a dollar billed

• More revenue with less

EE’s

Pricing Guidelines

www.trumethods.com

Measuring Leverage

Average MSP TruMethods Target

Number of Employee’s: 6 6

Annual Service $: $600,000 $900,000

Leverage: $100,000/EE $150,000/EE

Unrealized Profitability: $300,000


www.trumethods.com

Unrealized Profitability

What is your unrealized profitability?

Number of employees * $150,000

minus

Annual Service Revenue

=

Unrealized Profitability


www.trumethods.com

Building a Sales Engine

• Create “separation” based on your Super

Power

• Make price an advantage!

• Set a goal for new MRR

• Lead generation activities

• Implement accountability

www.trumethods.com

Top 3 Mistakes

1. Selling ingredients vs.

chocolate cake!

2. Too many choices and

options

3. Price too low!

www.trumethods.com

Checkpoint

Average World Class

AISP < $100 $125-$160+

Average MRR < $2,000 $3,500+

Net Profit 10% 25%+

NRR % 10% > 25%

Sales Inconsistent Every month

www.trumethods.com

Go!

• Built a unique offering

• Separate your results

• Value determines price

• This is the gold rush!

www.trumethods.com

Copyright 2013 TruMethods, LLC All rights reserved.

The FormulaWon Program

• Build a true competitive advantage

• Eliminate price as an objection

• Generate more leads

• Consistently build recurring revenue

• Dramatically increase profit margins

• Ready to achieve financial independence!

Why TruMethods?

www.trumethods.com

FormulaWon

Training

• Over 150 hours of role based content

• 2 Live Webinars / mo.

• Weekly Podcasts

Community

• Member Forums

• Ask TruMethods

• Schnizzfest

• Events

Tools

• myITprocess™

• SMART Numbers

• Business Plan Template

• Sales Playbooks


Results:• Complete Business Plan

• Gain Command of your SMART

Numbers

• Align packaging and pricing

with World Class standards

• Develop your Super Power

• Implement Sales Discipline

• Generate Leads

• Raise your expectations about

what’s possible

www.trumethods.com


The FormulaWon ProgramFueling MSP Growth

Growth Tracks is $399/month $349On boarding $1,500 NO CHARGE

Special Offer: Expires 2/19/16

www.trumethods.com

First 10 attendees who email:

[email protected]

Subject line: Sign me up!

SPECIAL OFFER: Expires 3/25/16

TruMethods Promotion

www.trumethods.com

First 10 attendees who email:

[email protected]

Subject line: Sign me up!

SPECIAL OFFER: Expires 3/25/16

SIGN UP FOR A FREE TRIAL

N-ABLE.com

The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-ableTechnologies, Inc. and its affiliates, are registered with the U.S. Patent and Trademark Officeand the Canadian Intellectual Property Office, and may be registered or pending registrationin other countries. All other N-able trademarks, service marks, and logos may be commonlaw marks, registered or pending registration in the United States, Canada, or in othercountries. All other trademarks mentioned herein are used for identification purposes onlyand may be or are trademarks or registered trademarks of their respective companies.

Questions




The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-ableTechnologies, Inc. and its affiliates, are registered with the U.S. Patent and TrademarkOffice and the Canadian Intellectual Property Office, and may be registered or pendingregistration in other countries. All other N-able trademarks, service marks, and logos maybe common law marks, registered or pending registration in the United States, Canada, orin other countries. All other trademarks mentioned herein are used for identificationpurposes only and may be or are trademarks or registered trademarks of their respectivecompanies.