How Do You Compete With "Commodotized" Managed Services

I had an interesting question come up the other day on a Master Mind Group coaching call. That is, “How do you compete with commoditized” managed services offerings? Namely, Dell?

First off, managed services isn’t “commoditized” – yet. Sure everyone is jumping on the managed IT services bandwagon, but if you walk into your average prospect’s office and say, “wanna buy our managed services program,” you’ll get the deer in headlights look.

So, here’s a few things for all MSPs to chew on…

First, it’s VERY difficult to have a truly UNIQUE managed services offering, regardless of what you are including. And if you do have something that is unique, it’s only a matter of time before your competition gets wind and then creates a cheaper, faster, better, lower-fat version of it. So guess what folks…it really is going to come down to two things:

1. Those who provide a consistently BETTER service than their competition by actually following through on their promises, delighting their clients, and going the extra mile.

2. Those who simply promote themselves better (marketing).

And, the second is a product of the first…combine them (an amazing, comprehensive service delivered right with great marketing) and you’ve got a force to be reckoned with.

After all, if your managed services program is substandard, it’s only a matter of time before you get fired and your competition gets hired.

But let’s suppose you ARE as good even better than your competition at actually delivering the service. Now what?

How do you sift, sort and screen through the cheapskates, tire-kickers, and price shoppers and find the few “sweet spot’ clients who truly appreciate what your managed services program offers to them?

It’s marketing – but not in the traditional clever advertising you see everywhere. You need to use educational direct response marketing to make that magic happen. And, you have to use your marketing to become slightly famous.

Let me explain…

Think of Starbucks, Les Schwab Tires, Domino’s Pizza, or even the George Forman grill. All are COMMODITY products you can get anywhere. But what makes these companies more successful at selling their products while their direct competitors stand by with their heads hung discounting like crazy to generate business?

Better marketing.

It IS all about how they are packaged and promoted.

Les Schwab is selling the same rubber donuts that everyone else is offering – but if you pull into one of their service centers, the mechanics RUN out to your car…and they offer guarantees and services that other tire stores don’t (or won’t offer).

In Seattle there’s a fish monger at the Pike’s Place Market that ALWAYS has a crowd which other fish mongers at the same market, selling to the same clients, selling the exact same fish barely have a line to buy.

What makes this fish monger different? The guys working there sing, chant, and throw the fish when you buy. It’s famous for that and people come from all around to buy their fish there just to experience the WAY they service their customers.

So how do you translate this into your managed services offering? Well, you’ll have to tune in for future posts to find out…I simply cannot cover it all in one shot.

But I will promise you this: the magic is in the packaging and marketing of the service, NOT in the service itself.

Dedicated to your success,

Robin Robins

P.S. If you want to see case studies from other managed services providers who are really exploding their business at a rapid rate through better marketing, go to the web site below:

http://www.technologymarketingtoolkit.com/casestudy.php