Different way to bill for Managed Services?
Posted on 2013-08-28
I run a somewhat profitable small IT firm, there are two founders (me being one) and two IT techs. Most, if not all our business, has been referral or word of mouth. Those leads are drying up rather quickly and we want to grow to the next level.
We usually charge our customers either with Break/Fix or the flat monthly fee model for managed services for a certain number of support hours a month. We do not offer unlimited support for obvious reasons.
I am curious, are there any other ways to bill for Managed Services? I would like to offer a third option.
We tried a few sales prospects by pitching them a flat price per incident/service request, but those deals were not able to be closed. For instance, 5 monthly incidents for $1000, no matter how long it took to complete, be it 10 minutes or 10 hours. Prospects then ask if those incidents/service requests can roll over each month, to which we said no. This is sort of like Break/Fix/MSP hybrid. We are guaranteed monthly revenue, but also limit the work we put in each month.
I am trying to think out of the box and think of a more intuitive way to bill future business for monthly support services; I feel like that the hourly monthly restriction scares future business away due to fear of giving up "unused" hours, and the incident/service request model scares the customer into never calling us with issues for help desk (we would monitor servers and network stuff under this model). And Break/Fix is not a good way to scale our business.
Any thoughts? I would appreciate any help you guys can give, a good discussion to help us grow.