Comments on: How Clients View IT Resources – Commodity or Trusted Advisor?

By: Carlo MacDonald

Carlo MacDonald — Fri, 24 Jul 2009 14:30:08 +0000

Right on the spot. I started out pricing by pc and server. Quickly realized that clients looked at us as a commodity that could be increased or decresed. We created a calculator that although takes into consideration the # of PC’s & Servers, we also take into other things like Terminal Services, Wireless system, etc…all of which can either decrease or increase the cost to manage. Yes clients ask how i got my price, but i tell them its 20 years of doing this, best practices, and being the best at what we do!

By: Tony Lael

Tony Lael — Tue, 14 Jul 2009 17:14:48 +0000

Ricardo, the interesting thing is that IT service companies should have ‘plans’ or ‘packages’, but the trick is to use them as internal guidelines for a place to start with the client offering – not as an advertised offering (like cell phone companies do).

There are factors in every business that make them unique to how you might support them and what THEY think are responsibilities that should be taken on by their IT service firm.

The firms that I have seen who are able to have a value added discussion and make pricing easy to understand for their clients have built the best relationships.

Thanks for the comments!

By: Ricardo James

Ricardo James — Tue, 14 Jul 2009 06:28:17 +0000

Excellent Blog Post Tony. I feel that too many service providers are selling on price which hinders the clients from seeing the true “VALUE” of services being offered to them, which ultimately leads to commoditization.

If we sell on Value our clients will see IT expenses as investments in their organization’s ability to increase efficiency and productivity, and mitigate business pain and risk.

In contrast, if we sell on price clients will see IT expenses as annoying costs to haggle over. A relationship cannot be built on cost, but on the value the prospect perceives you to be for their organization.

I feel if you lead with price you’ll put yourself out of business relatively quickly. If you lead with value, you’ll have a sustainable business model.

Which leads to a question I have ? Maybe this could be a good topic for your next blog posting.
How do feel about service providers advertising their service offerings on their website. Plan A = $X, Plan B = $Y, Plan C = $Z. To me this leads to price shopping which comes right back around to commoditization. Because if customers/clients go online and see Johnny’s Support Shop with Plan B for $60, Timmy’s IT with Plan B for $40. Then guess what, they will once again only see price while out price shopping and never even get a glimpse of value.

My Lawyer, Accountant, Doctor, etc does not advertise their prices on their website. But do I know the quality and value that they offer to me. You bet I do.

I believe that we as service providers should be offering the same to our clients, QUALITY and VALUE.

We all understand and know that these are tough economic times and many of the services we provide are here to help our clients through these tough times. Continue to show that you are there for them and why you are their Trusted Advisor. Nothing beats Value and they will always remember you for it.

Have a wonderful day.