Do you have a solid SMB customer base, but you’re struggling to transition to a true managed services model? Many MSPs are looking to make this shift, knowing that it can provide opportunities to bring in more recurring revenue. It can be a challenge, though, because small businesses don’t always see the value in managed IT services, and they stubbornly insist on sticking with the break-fix arrangement they’re familiar with. There’s usually a good reason for this stubbornness, and understanding it can help you overcome it.
Here are the top three reasons your SMB customers are dragging their feet:
1. They think it will be too expensive.
A small business owner has probably told you something like: “I’m paying for your IT services when I need them, and everything’s working fine. Why should I sign up for managed services?” What they aren’t thinking about is how much it cost them the last time their IT infrastructure failed. It’s likely a huge one-time cost that they had to pay unexpectedly and hadn’t budgeted for. They need to understand how your ongoing managed IT services would prevent situations like this from happening again, all for a manageable monthly fee that’s easy to budget.
2. They don’t see how it will help their business.
You’re not going to be able to convince an SMB customer to make the change unless they see the value in managed services. They might not understand how managed services can make their lives easier by simplifying day-to-day operations. Small business owners aren’t thinking about how managed services could include things like cloud applications and automation tools that would streamline their most mundane day-to-day tasks. They’re likely going to tell you that the way they’re doing things currently seems to be working, and that creates an opportunity to show them how much easier their business processes could be with managed IT services.
3. They don’t understand the risks of not having managed IT services.
When your customer thinks of managed IT services, they probably don’t fully understand what’s missing from their current arrangement. This prevents them from recognizing the true impact of your managed services offering on their business—and the risks associated with managing IT themselves. They look at it as an added cost for services they don’t think they need, instead of seeing the value and protection it would provide.
How to close more managed service business
Now that you have a better understanding of why SMB customers want to stick with the break-fix approach, you’ll be able to prepare for those tough conversations and win more managed services business. In our latest Recipe for Success how-to guide, we walk MSPs through the step-by-step process for overcoming these objections and converting the last of your break-fix customers to managed service contracts. Download it today for help kick starting this transition!