5 ways to grow your business profit from MSP 03 MARCH 2022 Your goal as an IT service provider should be to offer the best to your customers while maximizing profit . Having a sustainable net profit over the long term is the measure of a solid and successful business. After all, we know: turnover is vanity, profit is sanity, cash is reality . Who cares about the size of the turnover? I would rather have a business with a turnover of 500,000 euros that earns me 100,000 in net profit per year rather than a business with a turnover of 1 million euros but which is not profitable.
Increase the average sales value
There’s a formula to make msps like you more profitable . Number of leads x conversion rate = customers customers. X number of transactions x average sale = revenue revenue x . Profit margin = net profit if you want to improve the three outcomes . Customers, revenues new database and net profit – you need to work on five fundamental aspects . Here they are below in order of priority: 1 . Improve margins assuming your it services company is mature. The fastest way to achieve higher net profits is to improve margins. Raise your prices . Don’t think about it too much, just do it. Be careful with historical customers, but for everyone else add 10 euros immediately. Increase the price of your support for new customers. You will find that by doing this. Staff feedback will be more problematic than customer feedback.
Increase the Number of Transactions
Make sure you charge correctly for every minute of service you provide. Never discount or give away (add value instead – more on that later). You are not a bank freely available to customers. Collect payments at the beginning of the month, don’t give credit – if they stop CU Lists paying, stop helping. 2 – increase the average sales value choosing it support is made with the heart , not with the brain. It’s an emotional decision to come to you. When we choose car insurance we do so because it is required by law, so we choose the cheapest one. Then comes the heart that says “But this or that could happen” and then legal coverage. Breakdown coverage, etc. Is also provided. Same goes for it support. Always give customers options : one decent, one good, and one great.