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3. Who will sell it?
This might be
number one question being asked right now. Selling technology to "post chasm buyers" is not an easy thing to do. In my seminars I always ask
group to help me measure
percentage of successful sales people. In addition, I am looking for
average time it takes a new sales person to get up to speed. In some cases I have found companies who have gone through dozens of sales people over
last three years, trying to find someone who can bring in enough gross profit to pay for themselves and offer a sound return on investment for
company. Bringing in a cold caller to find new customers that want their systems monitored may not be
best approach.
Michael Bosworth, in his book, Customer Centric Selling calls for Marketing to get involved here (or perhaps
person doing
marketing function - that might be you). The message needs to be built; He calls this "Sales ready messaging". Michael Gerber, in his book eMyth Revisited, urges his readers to prototype
message - don't leave it to each person's interpretation and style. Once we have a proven message, there is a process to systematize it. In other words, create
message, get it right, and then use it as long as it works.
Once we have a message, we need to find every channel that can be used to sell
solution. At this point I recommend finding teachable people within your organization that will go out with you to learn
message. If there is a value to
service, and we are convinced
customers we deal with need it, then our task is to show them
need in a way that is so compelling that it will lead to a sale. Bosworth says, 3% of
people know they need something, 97% don't but can be shown. Your engineers may be your best candidates at this point.
4. Will it be profitable?
It will be profitable if we price it right. Managed services is a different kind of solution because, depending on how it is built, we may not know
cost of goods sold (COGS) before we sell it. One way to approach this is by having a system in place to measure engineering time (others may involve pricing out certain types of reactive services outside of
contract until
cost model is developed). Some companies offer unlimited helpdesk support to
end-user customer, others offer a certain number of incidents. Some offer patches in
contract, troubleshooting onsite, etc. If you don't track your costs you won't know what
profit looks like. At
end of
day, you are looking for high margins on managed services. If you are not seeing three times your burden rate over
year, your margins are too thin on this offering.

David Stelzl is the owner and founder of Stelzl Visionary Learning Concepts, Inc. working with manufacturers and resellers to create stronger partners through the adoption of emerging market business strategies. David specializes in professional coaching, workshops, and speaking engagements that help techology providers grow their business. Contact us at info@stelzl.us or visit www.stelzl.us to find out how to make your managed services offering successful.