August 15, 2017
Top Tips on How to Bundled Your Services
Pricing and packaging managed services is a common pain point for IT service providers. One approach managed service providers (MSPs) take is to package their offerings into “bundles” as opposed to simply allowing customers to choose services à la carte. Some prefer this approach because it makes pricing services simple and straightforward. Others say that it helps them differentiate their business from the competition.
Bundling gives MSPs an opportunity to demonstrate the value of their services in a straightforward way. An MSP may have tiers of services at different price points. Others may offer a single all-inclusive bundle sold as a “premium” service. However, some say an à la carte strategy is preferable because it gives them more flexibility when serving customers.
The approach you take will depend on your goals. We’ll walk you through the pros and cons of bundling services, look at different approaches to bundling, and get practical advice from successful MSPs.
What’s in a Bundle?: A bundle is whatever you want it to be. For example, the industry an MSP targets could dictate the services within their bundle. Also, an MSP could bundle services based on related IT functions, such as storage, backup, and disaster recovery. An MSP focused on smaller businesses or startups may include the installation, monitoring, and management of all technology in their bundled offerings.
Bundling Benefits: With à la carte pricing, customers frequently look for ways to cut costs by evaluating each service separately rather than looking at the big picture. Bundling services can help customers quickly understand how they’ll benefit from your service without needing to evaluate each piece.
The Case for à La Carte: While service bundles have many benefits, there are also reasons to offer services à la carte. MSPs who choose to offer services à la carte say that it allows them to pursue customers that they would not be able to with a bundle of services.
Value Perception: Regardless of the approach you take, you need to quickly and effectively communicate the value of your services. For some, bundling and standardization is key to delivering excellent service. For others, giving their customers a greater level of flexibility and working with the technology already have in place delivers value. As with most choices, it depends on what you are trying to accomplish as a business.
Ultimately, the decision to bundle services isn’t black and white. Bundled, à la carte, a combo of both - which one is right for your business? In Bundled Services Made MSPeasy, we uncover the pricing and packaging strategies for industry-leading MSPs so you can make an informed decision based on your needs. Grab your copy today!