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July 2, 2010
Intronis Online Data Backup Expert Tips: Pricing Online Backup to Your Client Base
You have a great online backup solution. You have a customer base that needs the service. But how do you structure your pricing to make profits?
Partners often struggle with determining a price that reflects both the product and the service that they offer. Though your pricing will differ according to your location and your portfolio, we’ve noticed that our most successful partners share a few common strategies.
However, before you start structuring your pricing, it’s essential to position your business as a value-added service, not merely as an intermediary between the client and the product. Once your clients understand your value proposition, then you can price your services accordingly.
The most important concept to understand regarding pricing is that MSPs need to differentiate between what it costs you for online backup and what you charge your customers for itâ€”including the time and money it costs you supporting that software. Strong, value-added services such as installation, upgrades, and restoration are all part of the service you offer your customers.
Other examples of valuable add-ons:
Determine Your Per GB Charge
The amount you charge can also depend on your location. In rural locations, you can expect to charge approximately $2/GB just for storage space and up to $5/GB for managed services. In minor metropolitan areas, you may want to charge $3/GB for storage and up to $8/GB for managed services. In major metropolitan areas, MSPs can charge $5/GB for storage and $10-$15/GB for managed depending on the industry.
Other fees you can add include software migration and other set up fees. These are the fees that you need to charge for the service that you’re providing. If you’re charging for just the raw storage space, you’re cheating yourself. Other creative pricing strategies are to charge extra for local vault, plugins, and SQL and Exchange.
Additionally, if you have a client who is already using an image-based solution, you can position online backup as a complimentary service. First of all, you can use our solution to backup those images. Or you can use our solution to backup laptops. For example, most laptops need only file-based backup, not system configurations. So offering online backup for corporate laptops is a good way to combine existing services with Intronis’ solution.
Also, Intronis charges partners monthly, so you’ll be able to look at your costs and easily compare them to your profits.
Along with your monthly bill, send an executive summary to your clients. List a few key metricsâ€”usage, backup frequency, restorations, etc.â€”and use graphs so clients can tell at a glance their network and other operations are functioning properly and that your service is adding value.
The most successful MSPs set the right expectations and don’t undersell the value that they’re providing. Make sure that your pricing structure reflects all the services you provide to your clients.
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