During this webinar, Gary will share proven methods for pricing and packaging your IT service offerings. If your recurring revenue is not increasing each and every month you need to hear what Gary has to say. During this webinar you will learn: • Pricing managed services and cloud: learn guidelines that will take the mystery out of pricing your support offering • Packaging your offering: Your support offering impacts sales, service delivery, and profit margins. • Learn the 3 most common mistakes IT providers make • Learn the answers to your burning questions: What should I include? How many offerings should I have? How should I present the offering? How you package and price your support offering is the most important decision most IT providers will make. Learn key best practices that ensure you will get it right.

1. © 2015 N-able Technologies, Inc. All rights reserved. 1
MSP
Packaging and
Pricing
Strategies to dramatically
increase sales and profits

2. © 2015 N-able Technologies, Inc. All rights reserved. 2
Webinar details
? REC
Length: 60min Questions
welcome any time
Recording and
slides available
next day

3. © 2015 N-able Technologies, Inc. All rights reserved. 3
On today’s Webinar
Presented By:
Gary Pica
President, TruMethods
David Weeks
Channel Sales Manager, N-able

4. © 2015 N-able Technologies, Inc. All rights reserved. 4
Giving service providers the
insights we’ve gained from
working with over 5,500 MSPs

5. www.trumethods.com
Average MSP
• Inconsistent MRR growth
• AISP under $100
• Leverage of $100,000 / employee
• Under 10% net profit margins
• Create very few jobs
© TruMethods, LLC. 2013 - All rights reserved

6. www.trumethods.com
World Class MSP
• New MRR at the right price EVERY month
• AISP $120 - $160 range
• Leverage of $150,000 or higher
• 25% - 35% net profit margins
• Create opportunity for all employees
© TruMethods, LLC. 2013 - All rights reserved

7. www.trumethods.com
Annual Service Revenue with 12 employees:
Copyright 2013 TruMethods, LLC
Average MSP $1,200,000
World Class $1,800,000

8. www.trumethods.com
5 Qualities of a World Class MSP
#1
Business
Planning
#2
Packaging
and Pricing
#3
Sales
Focus
#4
Be process
driven
#5
Command
© TruMethods, LLC. 2013 - All rights reserved

9. www.trumethods.com
Copyright 2013 TruMethods, LLC
Packaging Overview
• Your support offering
affects three key areas:
– Your ability to sell new
customers
– Your ability to deliver
quality service
– Your profitability as you
grow your customer base

10. www.trumethods.com
© 2013 TruMethods, LLC. All rights reserved
How do you deliver the end result?
Define “Your Super Power”
• What is your unique process to deliver value?
• How do you impact your customers business?
• How will you institutionalize your knowledge
and experience?

11. www.trumethods.com
Are you a grocery store or bakery?
© 2013 TruMethods, LLC. All rights reserved

12. www.trumethods.com
Are you a reseller or MSP?
© 2013 TruMethods, LLC. All rights reserved
• Remote support
• On-site support
• Virtual Servers
• VDI
• Remote Backup
• HaaS, IaaS, SaaS
• Desktop
Optimization
• Disaster Recovery
• Hardware
• Licensing
• Patch Mgmt.
• Anti-Spyware
• Anti-Spam
• Anti-Virus
• Technology
planning

13. www.trumethods.com
Copyright 2013 TruMethods, LLC
What to Include?
• Patch
• Spy
• Spam
• Virus
• Desktop
optimization
• Backup
• DRP
• Technology
planning
• Budgeting
• Remote support
• On-site support
• Network Admin
• 24x7
• How to questions
• MAC’s
• New workstations
• Monitoring
• Remediation
• Hardware support
• HaaS, SaaS
• Software
upgrades
• Project work
• Supporting users
at home
• 3rd party App
support
• Best practices
• Documentation
• Hosted app’s
• Hosted servers

14. www.trumethods.com
Copyright 2013 TruMethods, LLC
Typical “Managed Service”
Support
Remote
Support
(Helpdesk)
Onsite
Support
Basic
Automation
Monitoring
Anti-virus,
spyware
Patch
management
Does this define
“Your Super Power”?

15. www.trumethods.com
Copyright 2013 TruMethods, LLC
The Right Offering
Support
Remote
Support
(Helpdesk)
Onsite Support
Centralized
Services
All Basic
Automation
Services
Hosted
Applications
Hosted
Infrastructure
Proactive
Network
Administration
Proactive
Administration
“Your Super
Power”
Client
Relationship
Technology
Consulting
Technology
Planning
Budgeting
Business
Relationship

16. www.trumethods.com
Copyright 2013 TruMethods, LLC
• Quality support is important
• All MSP’s say they are good
• How can you differentiate
yourself?
Support
Remote
Support
(Helpdesk)
Onsite
Support
Roles and Responsibilities

17. www.trumethods.com
Copyright 2013 TruMethods, LLC
• Centralized services
• RMM
• Automation
• Cloud features
• Everyone has access to the
same tools and technology
Roles and Responsibilities
Centralized
Services
All Basic
Automation
Services
Hosted
Applications
Hosted
Infrastructure

18. www.trumethods.com
Copyright 2013 TruMethods, LLC
Proactive
Network
Administration
Proactive
Administration
“Your Super
Power”
Client
Relationship
• Build “Your Super Power”
• Develop your “recipe”
• Develop technical standards
• Technical Alignment
Roles and Responsibilities

19. www.trumethods.com
Standards
• Backup
• Windows Servers
• Anti-Virus
• Desktops
• Power Management
• Wireless Access
• Patch Management
• Firewalls
• Routers
• Switches
• Email
• LOB Applications
• Cloud Services
• Disaster Recovery
© TruMethods, LLC. 2013 - All rights reserved

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Standards
• Example: Password Policy
© TruMethods, LLC. 2013 - All rights reserved

21. www.trumethods.com
Technical Alignment
• Don’t leave room
for interpretation
– Yes or No
• Provide detail
where appropriate
• Be careful what
you “fix” in this
stage
© TruMethods, LLC. 2013 - All rights reserved

22. www.trumethods.com
Copyright 2013 TruMethods, LLC
Technology
Consulting
Technology
Planning
Budgeting
Business
Relationship
• Known as vCIO
• The business impact of
technology
• Planning, budgeting,
strategy
• Leverage Network
Administration
Roles and Responsibilities

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Business Impact
• How could
misalignments
affect their
business?
• What do we
recommend?
© TruMethods, LLC. 2013 - All rights reserved

24. www.trumethods.com
Client Strategy
© TruMethods, LLC. 2013 - All rights reserved

25. www.trumethods.com
Copyright 2013 TruMethods, LLC
The Right Offering
Support
Remote
Support
(Helpdesk)
Onsite
Support
Centralized
Services
Monitoring
Patch
Management
Anti-Spyware
& Anti-Virus
Spam
Filtering
Support
Remote
Support
(Helpdesk)
Onsite
Support
Centralized
Services
Basic
Automation
Hosted
Applications
Hosted
Infrastructure
Proactive
Network
Administration
Proactive
Administration
“Your Super
Power”
Client
Relationship
Technology
Consulting
Technology
Planning
Budgeting
Business
Relationship

26. www.trumethods.com
Your service offering
• Focus on the end result
• What results do you
want to deliver to EVERY
client?
• What unique process
will separate you?
• Bundle services

27. www.trumethods.com
Managed Services PlatformRemote Services Technology
| Product Family
MSP Anywhere
Remote access & support
MSP Manager
Ticketing & billing
N-central
Monitor. Manage. Automate.
Connect in seconds
Cross platform
Support mobile devices
Session transfer
Session recording
Performance dashboard
Ticket management
Customer portal
Password management
Technician scheduling
Customer billing
Accounting integration
Device monitoring
Health & performance
alerts
Drag & drop automation
Integrated patch, AV,
backup
Integrated remote control
Business reports
$49 USD / month
per concurrent user
$49 USD / month
per concurrent user
Starting at
$499 USD
/month
Unlimited sessions
300 devices
Unlimited tickets
Unlimited billing
Monitor 100 devices free
Free business coaching

28. www.trumethods.com
SIGN UP FOR A FREE TRIAL
N-ABLE.com
The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-able Technologies, Inc. and its affiliates, are registered with the U.S. Patent and Trademark Office and
the Canadian Intellectual Property Office, and may be registered or pending registration in other countries. All other N-able trademarks, service marks, and logos may be common law marks,
registered or pending registration in the United States, Canada, or in other countries. All other trademarks mentioned herein are used for identification purposes only and may be or are
trademarks or registered trademarks of their respective companies.

29. www.trumethods.com
The right service offering
Combine ingredients with your recipe
to create the right service offering
© 2013 TruMethods, LLC. All rights reserved
Everybody
(Ingredients)
• Support
• AV / AS
• Monitoring
• Back-up & DR
• Helpdesk
• Cloud services
Your Super Power
(Your recipe)
• Process
• Resources
• Best Practices
• Standardization
• Technology consulting

30. www.trumethods.com
Your service offering
• Define your “Edges”
• Limit choices and
options
• Remove entrance
barriers

31. www.trumethods.com
Good packaging should…
• Explain the reason a prospect should buy
• Make it easy to understand the end result
• Align our offering with service delivery
• Clearly separate our results from others
• Eliminate price as an objection
© 2013 TruMethods, LLC. All rights reserved

32. www.trumethods.com
Copyright 2013 TruMethods, LLC
Pricing Guidelines
Guidelines
• Keep it simple
• Don’t share your psychosis
• Use AISP as your guide
• Project the model
• Your price is not too high!

33. www.trumethods.com
Example
Example
Avg.
Seats
Avg.
AISP
Avg.
MRR
MRR with
50 clients
Seats
Right
Customers-
Right price
20 $140 $2,800 $140,000 1000
Right
Customers-
Wrong Price
20 $95 $1,900 $95,000 1000
Copyright 2013 TruMethods, LLC

34. www.trumethods.com
Picanomics
Cost per Month per Seat
Support $9.38
Centralized Services $9.50
Network Administration $11.60
vCIO $6.31
Total: ~$36 / Month / Seat

35. www.trumethods.com
Picanomics
What if your AISP is lower?
AISP
Total Cost
per Seat
Gross
Margin
Gross
Margin %
$125 $36 $89 72%
$100 $36 $64 64%
$85 $36 $49 58%

36. www.trumethods.com
Copyright 2013 TruMethods, LLC
Leverage
• Relationship between an hour worked
and a dollar billed
• More revenue with less
EE’s
Pricing Guidelines

37. www.trumethods.com
Measuring Leverage
Average MSP TruMethods Target
Number of Employee’s: 6 6
Annual Service $: $600,000 $900,000
Leverage: $100,000/EE $150,000/EE
Unrealized Profitability: $300,000
Copyright 2013 TruMethods, LLC

38. www.trumethods.com
Unrealized Profitability
What is your unrealized profitability?
Number of employees * $150,000
minus
Annual Service Revenue
=
Unrealized Profitability
Copyright 2012 TruMethods, LLC

39. www.trumethods.com
Building a Sales Engine
• Create “separation” based on your Super
Power
• Make price an advantage!
• Set a goal for new MRR
• Lead generation activities
• Implement accountability

40. www.trumethods.com
Top 3 Mistakes
1. Selling ingredients vs.
chocolate cake!
2. Too many choices and
options
3. Price too low!

41. www.trumethods.com
Checkpoint
Average World Class
AISP < $100 $125-$160+
Average MRR < $2,000 $3,500+
Net Profit 10% 25%+
NRR % 10% > 25%
Sales Inconsistent Every month

42. www.trumethods.com
Go!
• Built a unique offering
• Separate your results
• Value determines price
• This is the gold rush!

43. www.trumethods.com
Copyright 2013 TruMethods, LLC All rights reserved.
The FormulaWon Program
• Build a true competitive advantage
• Eliminate price as an objection
• Generate more leads
• Consistently build recurring revenue
• Dramatically increase profit margins
• Ready to achieve financial independence!
Why TruMethods?

44. www.trumethods.com
FormulaWon
Training
• Over 150 hours of role
based content
• 2 Live Webinars / mo.
• Weekly Podcasts
Community
• Member Forums
• Ask TruMethods
• Schnizzfest
• Events
Tools
• myITprocess™
• SMART Numbers
• Business Plan Template
• Sales Playbooks
Copyright 2010 TruMethods, LLC
Results:
• Complete Business Plan
• Gain Command of your SMART
Numbers
• Align packaging and pricing
with World Class standards
• Develop your Super Power
• Implement Sales Discipline
• Generate Leads
• Raise your expectations about
what’s possible

45. www.trumethods.com
Copyright 2013 TruMethods, LLC
The FormulaWon Program
Fueling MSP Growth
Growth Tracks is $399/month $349On boarding $1,500 NO CHARGE
Special Offer: Expires 2/19/16

46. www.trumethods.com
First 10 attendees who email:
gary.promo@trumethods.com
Subject line: Sign me up!
SPECIAL OFFER:
Expires 3/25/16
TruMethods Promotion

47. www.trumethods.com
First 10 attendees who email:
gary.promo@trumethods.com
Subject line: Sign me up!
SPECIAL OFFER:
Expires 3/25/16
SIGN UP FOR A FREE
TRIAL
N-ABLE.com
The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-able
Technologies, Inc. and its affiliates, are registered with the U.S. Patent and Trademark Office
and the Canadian Intellectual Property Office, and may be registered or pending registration
in other countries. All other N-able trademarks, service marks, and logos may be common
law marks, registered or pending registration in the United States, Canada, or in other
countries. All other trademarks mentioned herein are used for identification purposes only
and may be or are trademarks or registered trademarks of their respective companies.
Questions

48. © 2015 N-able Technologies, Inc. All rights reserved. 48
The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-able
Technologies, Inc. and its affiliates, are registered with the U.S. Patent and Trademark
Office and the Canadian Intellectual Property Office, and may be registered or pending
registration in other countries. All other N-able trademarks, service marks, and logos may
be common law marks, registered or pending registration in the United States, Canada, or
in other countries. All other trademarks mentioned herein are used for identification
purposes only and may be or are trademarks or registered trademarks of their respective
companies.