IT and Business Insights for SMB Solution Providers

Erick Simpson’s July 2019 Business Transformation Newsletter

Cloud and MSP pricing tips for maximum margins and more!

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Business Transformation Newsletter July 2019

Erick Simpson

Cloud and MSP Pricing Techniques That Maximize Margins

No matter how well you design and deliver a managed or cloud service, it won’t make you money – and might even cost you some – if you don’t price it properly. This article delivers proven, actionable advice on how to arrive at the most profitable prices for your service offerings.

Pricing Cloud Computing and Other MRR Services

There are several factors that can affect your pricing methodology for cloud computing and other monthly recurring revenue services. You will need to analyze your business to determine your pricing model depending on factors including, but not limited to:

  • Your predominant business model
  • The services that comprise your cloud or other MRR offerings
  • Your costs to deliver these services Your sales sophistication
  • Your efficiencies in delivering these services

The less efficient you are at delivering service, the higher your price points must be to maintain your desired net profitability.

Pricing Factors Pyramid


Determining Your Predominant Business Model

Your predominant business model may influence not only your deliverables and how successful you are at marketing and selling them, but also your target markets, customers, vendors, and overall profitability. If your predominant business model is product-centric, you may be challenged when attempting to sell and deliver cloud or other MRR services, as the achievement of success in a more service-centric model requires unique skill sets centered on effective sales and long-term relationship-building and customer satisfaction techniques.

As an example, it is logical to assume that a product-centric or time and materials – based service provider would have a tougher time selling cloud computing solutions and delivering services as efficiently, effectively, and profitably as would a reseller who has already built an effective managed services practice….

Continue reading...

Join Me For The “MSP Mastered®” Webinar Series Part 1!
 How to Increase Efficiencies & Profits: Processes, Roles & KPIs
Tuesday, July 16th @ 10am PST / 12pm CST / 1pm EST

The “MSP Mastered” Webinar Series Part 1

Join me and industry veteran Luis Giraldo from IT Glue for a webinar that will take an intriguing, foresightful look at how best-in-class MSPs are future-proofing their business by mastering the art of constant change and delivering top performance.

Part 1 – Processes, Roles and KPIs
Regularly measuring NOC and service desk performance can help reduce costs, improve performance and increase profit. Best-in-class MSPs know that they need to focus on capturing meaningful data, displaying it in an easy-to-understand manner. During this service improvement session, Erick Simpson reveals how to determine the best KPIs for service desk, financial, and NOC performance.

All attendees will receive the following MSP Mastered® tools by Erick Simpson:
The Service Dispatch Process Best Practices Guide

Click Here to Register Now!

Get My Consultative MSP Sales Proposal Template Free!

Erick Simpson's MSP Sales Qualifying Questions Reference

This valuable 16 page editable MSP Sales Proposal Template is the most successful, business-winning proposal me and my clients have used for selling Managed IT Services!

This is the most successful, business-winning sales proposal ever used by me and my consulting clients for selling Monthly Recurring Revenue IT Services. Crafted specifically for selling Managed IT Services, it is designed to remind the prospect of their pain and challenges, and the implications of not addressing these critical needs, building urgency and buying temperature and accelerating the close of the sale.

Click here to download Free!

Join Me And A Handful Of My Fellow Coaches And Mentors
@ Channelcon 2019 For A Once-In-A-Lifetime Opportunity!

We’re putting together coach-led Mastermind groups …and you’re invited free!
Monday, August 5th from 1:15pm to 2:45pm

Mastermind Workshop

What Is A Mastermind Group? You may have already experienced the power of a mastermind group without realizing it. The best example would be a time when you were deep in conversation with a small group of sharp individuals and suddenly found yourself internally super-charged with new and different ideas, maybe even solutions to things you’d been pondering for months. This is the power of a mastermind group. The intention is to feed the idea factory in all of us by making connections with other inspired and motivated people who share a desire to get to the next level. When you participate fully, you get access to and feel the power of the mastermind. Everyone makes new connections that are often long-term and certainly always beneficial.

Click Here For More Information!

Listen to My New FranklyMSP Podcast!

Erick Simpson Podcasting

I was recently interviewed on the FranklyMSP Podcast where we explored the importance of a dedicated service dispatcher and the qualities you need to look for when you’re ready to add one to your team.

Click here to listen now

Let’s Connect at an Upcoming Event!

Erick Simpson's Speaking Schedule

I’ve got quite a full event speaking schedule this year – over 20 events – so let me know if you’re going to any and let’s connect in person!

Jul:   SMB TechFest Anaheim, CA
        (Register with this link and attend FREE)
Aug: CompTIA ChannelCon Las Vegas, NV
Sep: ChannelPro SMB Forum San Jose, CA
        (Use Code ESVIP to attend FREE)
Sep: Channel Partners Evolution Washington, DC
        (Register with this link and receive discounted registration)
Sep: Midsize Enterprise Summit  Phoenix, AZ
        (Register with this link and attend FREE if selected)

Click here for my event schedule!

Bose® SoundTouch® 10 Wireless Speaker

Answer 3 short questions and be entered to win a Bose® SoundTouch® 10 Wireless Speaker!

This Month’s Poll:

Please take a moment to answer
three short questions about managed services

As an IT solutions provider, your unique perspective will help provide vendors with useful information as they continue to improve their solutions for your customers.

In appreciation of your time, you will be automatically entered in our drawing for a 
Bose SoundTouch 10 wireless speaker!

Click here to take the Poll!


Erick Simpson's Online Store

USE COUPON CODE: store30! and get 30% off your entire cart!
Expires this Friday, July 12th
(excludes already discounted bundles)

Save 30% In My Online Store!

I’d like to invite you to visit my online store – its chock full of my most effective business improvement and transformation assets including my best-selling books, audiobooks and white papers. You’ll also find my business process checklists, pricing and comp plan calculators and hiring and HR tools like employment ads and job descriptions. I’ve also included my business-winning sales proposals, MSAs, SOWs, service agreements and much more. Check back frequently as I’m uploading more tools, forms, collateral and resources weekly!

Take Me To The Store!


My Strategic Coaching Calls Help Identify and
Eliminate Roadblocks to Your Business Growth

I’ll personally coach you to break past your business and sales growth, service efficiency and profitability bottlenecks. We’ll roll up our sleeves and work together in a candid, strategic manner where no stone of your business is left unturned as we uncover the keys to breaking past your historical business obstacles.
My clients tell me that they’ve never experienced such a positive, business changing engagement from any other resource EVER.

Don’t hesitate – schedule a call with me today to explore how I can deliver the positive business transformation for you that so many others have experienced.

Click the Player Button Below to Learn More and Watch My Testimonials!

Erick Simpson's Client Testimonials

Schedule a Quick Call to Explore How I Can Help!


Erick Simpson

Erick Simpson

Founder & Chief Strategist
[email protected]
2271 W. Malvern Ave., #169 Fullerton CA 92833



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About the Author

Erick Simpson's picture

A Technology Businesses and Channel Growth and Transformation Consultant | Business Process Improvement, M&A and Integration Expert

Co-Founder of one of the first "Pure Play" MSPs in the industry, and creator of the MSP Mastered™ Methodology for Managed Services business performance improvement and the Vendor Channel Maturity Level Index™ that identifies IT channel program maturation for strategic growth, Erick Simpson is a strategic technology business growth and transformation specialist. He is experienced in improving top and bottom-line business performance by increasing operational efficiencies, boosting marketing and lead generation outcomes, accelerating sales velocity, shortening sales cycles and maximizing service efficiencies.

With over 30 years of experience in the IT industry as an Enterprise CIO, MSP, Strategic Coach and Consultant, Erick is a Business Process Improvement Expert with hundreds of successful IT Solution Provider, MSP, Cloud and Security practice business improvement consulting engagement outcomes.

One of the most prolific, recognized and sought-after  business improvement and transformation experts, authors and speakers in the industry, Erick has contributed to numerous industry publications and spoken at hundreds of events.

His published works include "The Guide to a Successful Managed Services Practice"; the definitive book on Managed Services, “The Best I.T. Sales & Marketing BOOK EVER!”, “The Best I.T. Service Delivery BOOK EVER!” and “The Best NOC and Service Desk Operations BOOK EVER!”, along with 50 Best Practice Guides.

Consulting Services for MSPs and Channel Vendors:



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