4 Reasons to Avoid an Hourly Service Model

Are you overreacting?

That is, are you still finding yourself in a reactive mode for clients who are hanging on for dear life to an ‘hours-based’ services model? The truth is, you’re not doing them or yourself any favors.

In building a managed services provider (MSP) business that offers maximum profitability for customers, you know that proactive services always provide the best protection and bottom-line value. The challenge is in educating customers on the benefits.

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It’s easy to consider caving when a prospective client digs in their heels, insisting they’re interested in doing business only if you provide a ‘call-as-needed’ service option. To help you stand your ground, here are 4 simple, but effective reasons to avoid hours-based services.

1. The Hidden Costs of Triage Emergency response isn’t cheap. While a potential customer may think they’ll save money by avoiding a long-term agreement and calling you on as ‘as-needed’ basis, they may not have thought the situation all the way through.

During your pre-sales discovery conversations, ask them about their plan for initiating service when the need arises. Will approvals delay the process? What is the cost of a sign-off procedure that involves the time and attention of highly paid staff?

With managed services in place, response can be quick and budgeted for, causing minimal interruption to business and cash flow.

2. The Risks of No Protection As a responsible managed service provider, you can’t look at any level of protection for a client as being better than none. Even if a prospect wants to ‘take their chances,’ you should consider the ethical implications of leaving them at risk without managed backup or a functioning antivirus solution. Find out how your potential client plans to handle such areas if not through your services.

3. The Impossibility of Prioritizing You can’t operate your business efficiently while on-call 24/7 waiting for the ‘alarm’ to sound. Hours-based, reactive service agreements play havoc with tech availability and response time. Much of the beauty of managed services is the ongoing monitoring and remediation that helps prevent urgent, unscheduled service.

4. Managed Services is Everywhere A cell phone plan offers a package of calls, texts, and data usage for a set cost. A financial planner will provide management for a fee—you don’t pay per question you ask. Keep in mind that what you’re proposing is a way of doing business that’s familiar—and acceptable—to your prospective clients. It may even be part of how services are offered within their industry.

Don’t chance losing business and potential profit due a customer’s ‘hours-based’ bias. Our experienced ConnectWise business success team has the collateral, pricing, and packaging assistance to close your next recurring revenue sale.

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