Every managed services provider feels obligated to offer an attractive all-you-can-eat (AYCE) plan that satisfies customers’ needs without compromising profit margins. In his latest article, 3 Keys to a Successful AYCE Managed Services Offering, Rob Merklinger, vice president of Intronis, describes three common pitfalls MSPs can fall into that make it impossible to offer a predictable monthly flat fee service to your customers.
One point Merklinger makes that every MSP has to contend with is what some call the honeymoon period, which is the three- to six-month period that follows the start of a managed services contract, which is often the most turbulent period in terms of extra labor hours and on-site visits required to get the customer’s network and computers cleaned up, fixed up, and updated.
The important thing to remember, says Merklinger, is not to:
“create a long-term fixed-price agreement with a customer based on the state of their IT infrastructure during the “honeymoon”–especially if this is the first time the company is entering into a managed services agreement. Instead, be upfront about the fact that you’re going to need to get their IT environment up to par first so they can experience the uptime you’re both striving for–and that it may take a few months before they start paying a monthly flat rate.”
Already have this one figured out? Be sure to check out Merklinger’s two other tips, which include: “Don’t Become a Cloud Storage Micromanager” and “Watch Out for Oversimplified Managed Services Models.”