That stands for “keep it simple, stupid,” and is Nigel Moore’s primary recommendation about pricing—in a downturn, upswing, or anything in between.
“As soon as you start making it complicated, it gets out of control,” says Moore (pictured), a mentor and coach for MSPs who is also author of Package, Price, Profit: The Essential Guide to Packaging and Pricing Your MSP Plans.
An ex-MSP himself, Moore knows from firsthand experience how complex pricing schemes can make closing business unnecessarily difficult. “I ended up throwing all this stuff in my plans and having these crazy complicated plans that were really ridiculously high price, which made them hard to sell,” he says. “My encouragement is start small. Just get the basics in your plans first.”
And that’s “plans” with an “s”, as in more than one, he adds. Offering three plans with “good, better, best” rates—all of which, crucially, deliver strong margins—lets clients compare you against you instead of a competitor.
“We all love to shop,” he says. “If you give them three different options then the chance of them going and trying to shop to get a comparison is going to be far less because you’ve given them a comparison.”
You’ve also given clients who are tight with money a way to essentially sell themselves down from your most expensive plan into a cheaper but equally profitable one. “When there’s this contrast between a $1,000 or $1,500 price and a $3,000 price, it can make the $1,500 price look a whole lot better,” Moore observes.
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