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La Pricing Model Of Pricing Analysis

1428 Words6 Pages

Pricing is important since it will dictate the revenue. Low pricing can make you lose money while high pricing can make you lose customers, thus you should learn how to balance it. Take your time in doing pricing and never jump into conclusions. Likewise do not easily give away discounts to clients without analyzing them and looking at their businesses. Price your managed services according to the value you created. Talk with the client and understand their business needs to establish the value of the services offerings. This would determine the price of you service and how are you going to sell it. Below are different pricing models with different level of success
PRICING MODELS
VALUE-PRICING MODEL - this is one of the most favorite models …show more content…

The premise here is that clients are allow to pick Managed Services from a set of individually priced services. Some find it risky since they have to come up with many decisions as which service or services to acquire thus, prolonging the sales process. The more choices a client has to make, the more confusing it might get. This usually results in skipping services that they really need or end up choosing services that are not so critical in their business. Moreover the A La Carte Pricing Model can skew the perception of the client on these services instead of focusing on its …show more content…

Remember that proper pricing is critical to your business’ success. Make your clients feel that your service offerings are in line with their wants and needs so they will feel confident and choose to invest in your services.
How Much to Charge
After evaluating these pricing models, you will eventually asked the question, “How much am I going to charge for these managed services?”. As an MSP business owner you should do your homework and not just only rely on the competitors per-user or monthly per-device rates.
Apparently, profits await but net losses as well if you are not prepared and did not do your homework on these various pricing models. Look at your service in a fresh perspective and think of the delivery costs. Weigh the advantages and disadvantages if you are to hire additional technicians versus outsourcing back-end support from Network Operations Center or a Service Desk. This will also have an effect on your pricing decisions.
Building a Service

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