I was working with a solution provider this week on establishing a base of recurring revenue. Taking an existing client who spends $16,000/year on break-fix work, the reseller owner was able to turn this into a $2500/month recurring. How did he do it? The tendency is to look at what the client is spending and sell ROI – that means charging less than they paid over the past year and making up for it through efficiencies. This strategy also begins a six month study on the part of the client to figure out how much they did spend and whether or not they got their money’s worth.
Nickel and diming the client never works…you’ll always come up short. Look at the value you provide, what its worth to the client, and where they stand to take big losses in the future. Proactive service is always better than ROI; it’s a risk mitigation sale, not ROI.
Over the next month I am scheduling Vision Development WorkshopsTM – I have only a few dates left. It’s $6500, 1.5 days of solid strategy. We will focus on the tactics of getting your business moving forward, generating new business, creating recurring revenue and financial stability, marketing strategy, and organizational optimization. It’s a war-room type meeting so it requires all participants to be local.
If you can’t fit it in or can’t quite afford this program I recommend signing up for the Podcast series – these are pragmatic ideas that will help align your business strategy with profit and provide you with ideas and skills you can apply immediately.