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Managed Services, Time to Sell it! Eric G Steinberg Principle Consultant/Founder The Boundless Group, Inc.

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Presentation on theme: "Managed Services, Time to Sell it! Eric G Steinberg Principle Consultant/Founder The Boundless Group, Inc."— Presentation transcript:

1 Managed Services, Time to Sell it! Eric G Steinberg Principle Consultant/Founder The Boundless Group, Inc.

2 Success Sales success is not an island, but a synergy of: –Sales and Marketing Strategy –The Sales Force –Training –Focusing on Results –Prospecting –The Sales Call –The Relationship

3 Lets Have a Conversation Building the Plan Getting the Right People on the bus Training for Success The Relationship Prospecting The Sales Call Managing for Results

4 Sales & Marketing Strategy Defining Sales and Marketing Goals Branding Priming the Pump

5 Definition of Sales and Marketing Marketing –Anything you do to determine what to put on your cart Sales –Anything you do to get your stuff off the cart

6 Determining What to Put on Your Cart Costs Pricing Features Market Research Branding

7 Costs Do you know what your real costs are for your MSP Services? Do you know your Burden? Do you know where Break-even point is? What are your variable expenses? Do you understand how to make money overall when you have a loss leader?

8 Cost of Goods Sold Salary –Base –Bonus Utilization –What percent do you get for field engineering work? –What percent do you get, or anticipate getting for MSP Payroll Taxes Insurance –Health –Liability –Other Facilities –Hosting –Staff Vacation/Sick Leave Equipment –Hosting –Laptops –Other Travel –Mileage –Out of Town Training –Class costs –Travel costs –Lost revenue costs

9 Pricing The million dollar question Do top down pricing, not bottom up pricing Fixed Fee Incremented based on either users, devices or servers. (Kiss) All inclusive –Hardware –Software –Services Based on research and SWAG Mark up verse mark on

10 Pricing Top Down –Establish what the high price your clients will pay –Establish what margin youd like –Determine costs –Does it work? Bottom Up –Take COGS and mark it up (or on)

11 What is your offering? SaaS TaaS RMM HaaS MSP How are you different?

12 Who Would Ever Buy This? Why would anyone want to buy this? What is its (vertical) market value How does your offering meet your clients specific business needs Why should they buy it from you?

13 The Benefits Of Brand Management Brand Equity/Value –Awareness –Relevance –Loyalty –Price Elasticity –Extendibility –Competitive Advantage

14 The Brand Called You Who knows your company? Who knows what your company does? How are you uniquely qualified to meet your clients needs? How do you define Specialized or Vertical markets? Branding Test

15 Brand Positioning Template For _______________________________, ___________________ (Audience) (Brand) is the ______________________________________________ that (Competitive Set) ______________________________________________________, (Primary Benefit) because _______________________________________________ _____________________________________________________.

16 The Test Go to everyone in your building and ask them if they ever heard of your company If they have, ask them what you do

17 Getting the Right People on the Bus Identifying Recruiting Hiring Retaining Compensating

18 Identifying What are the characteristics of your most successful sales people? –Skills –Personality (in the selling situation) –Interests Always be interviewing

19 Recruiting Where do you find the best sales people –Competition –Vendor –Supplier –Out in the World –Referrals

20 Creating a Profile Creating a Hiring Metric –Part Personality –Part Interests –Part Skills Interviewed by someone from each department they will interact with and some of their peers Set the bar high

21 Retention Work environment Benefits –The usual suspects –The not so usual suspects –Develop a career path Base pay Commissions and Bonus –At the time of the sale –At the time of renewal –Monthly reoccurring

22 Profile of a successful MSP Sales Rep Has successfully sold intangibles Knows more about business then technology Understands the technology Understands the unique requirements of the clients business/industry Fits your metric of a successful sales rep

23 Training for Success Business 101 Understand the technology behind the offering, but dont sell it Communications Critical Thinking Questioning

24 Making Your Price Stick The client rarely makes it about pricing. You do! If a client does bring up a competitors price theres generally something else under the surface If you sale your product at a 30% GP and give your client a 10% discount, you must sell 1/3 more to make up the same commission/GPM

25 The Cost Discounting the Sale Selling Price$10,000 Gross Profit Margin30% Gross Profit Dollars$3,000 Commission Rate10% Commission Dollars$300 Discount15% Selling Price$8,500 Gross Profit Margin26% Gross Profit Dollars$2,168 Commission Rate10% Commission Dollars$217 Forfeited Commission$83 Additional sales required to make up lost commission$3,200 Sales to equal the same commission32% Total sales for equal commission$13,200

26 Getting your Stuff off the Cart Advertising Seminars Lead Generation Prospecting Sales Calls

27 Advertising Why –Name recognition –Lead Generation Where –Newspapers –Radio –TV When –When your target audience will see/hear/read it

28 Seminars Establish your expertise Create educated prospects Dont sell, give information Host a speaker who will attract the type of client youre looking for

29 Lead Generation Prospecting by calling names out of the Yellow Pages is a kin to banging your head against the wall. It makes you tougher, but not smarter. Its not promoting a sales persons laziness, its promoting their (and your) success Sources –References/Word of mouth –Vendors –Seminars –Advertising

30 Prospecting (Asking for a date) The only thing youre doing when call a prospect is selling an appointment to meet –Never. Never. Send literature or pricing –Never attempt to sell your product or service –Always get an appointment –A fast no is better then a slow no –Dont sell, have a conversation –Do your research first –Imagine how much easier this is when you have successfully branded company

31 The Sales Call (The Date) –Make a great first impression –Be interested, not interesting (at first) –Speeds and feeds dont cut it –You must present a business case where you have a solution to the clients business problem(s) –Better yet, have a solution for a problem they never knew they had

32 The Relationship Theyre clients, not customers Youre looking for engagements, not projects Never stop adding value and value isnt what it used to be

33 Steps to Success Introduction Exploration Show Ability Establish Commitment

34 Planning the Sales Call Write down each sales calls objectives prior to meeting with a client –An objective that leads you to Proceed forward Proceed, dont prolong –Proceeding is something specific that mores towards a sale –Prolonging is where no specific action is taken to more towards a sale, but the sale is not dead

35 Myth Busters Closing questions dont work Be a hard closer (2:1 ratio) In major account sales, fewer then 10% of sales calls lead to an order The product or service doesnt matter Its all about price

36 The Client Value Zone (CVZ) Value Zone Business knowledge Product Knowledge Knowledge of Clients Industry

37 The Value Zone This is where you can uncover unrealized problems. This represents true value to your client It differentiates you from the competition Its not about asking questions, it about ask the right questions –Industry knowledge –Business person, not sales person –Learn good questioning skills

38 The Value Equation Value = Benefits – Cost Benefits = –(Skills + Process + Knowledge) x Effort Skills = leading the client to self- discovery of the problem Process = Learn what specific challenges face your clients industry and which of them you can solve

39 The Value Equation (Continued) Knowledge = insight in to your clients industries. Always be learning Effort = what you do. Become immersed in your clients business and where you services delivery a solution.

40 Managing for Results Treat them like adults (dont micro manage) Set mutual goals Give them everything they need to succeed Gain agree that they will do what ever it takes Reward them well

41 Contact Info Phone 303.800.0686 eMail –Email me for a reading list Web Site

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