If you’ve been managing an MSP for some time, what I’m about to say might just be so relatable that you may think I’ve been secretly listening in on your sales calls.

Let’s set the scene.

You’ve just sent over a proposal to a prospective client. Your services cover everything from cybersecurity to software updates to 24/7 monitoring. Essentially, you’re offering the whole nine yards of protection. And even though you know they need it all to stay secure and run efficiently, as soon as they take one look at your itemized list, they become “that client”—the dreaded nickel-and-dimer.

Like clockwork, they ask,

“Well, how about we remove 24/7 monitoring? We don’t really need that, do we?”

“What about the software updates–can we skip it for now and worry about it when it comes up?”

“Do we really need the data backups? We haven’t lost anything yet, and we already have an external hard drive.”

And then comes your internal sigh as you continue to witness them tempt fate while trying to save a few bucks on critical disaster recovery.

Then, before you know it, you’re sitting there defending each service, trying to figure out a price that will “fit into their budget” and also keep you fed.

If you give in to the requests and start striking services here and there, you are essentially unbundling your offer and giving away your opportunity to make money.

Don’t do that.

Here’s why.

Disney Figured this out a long time ago

Way back when Disney started running theme parks, they charged per ride.

Each ride had a different value. For example imagine Space Mountain’s price was $5, Peter Pan’s $2, and and Pirates of the Caribbean’s $7.

Now imagine that someone shows up. Call them, hmm, Person 1, and they’d pay $1 for Peter Pan, $5 for Space Mountain, and $5 for Pirates of the Caribbean.

The next person in line, call them Guinevere, will happily pay $7 for Pirates of the Caribbean, $3.50 for Space Mountain, and, being sane, 50 cents for Peter Pan.

In this case, Person 1 spends $5 at Disney, and Guinevere spends $7.

Here’s the thing, though. Guinevere and Person 1 will both pay $11 if you bundle all three rides together. And since Disney is operating all the rides anyway, who cares how much Guinevere would actually spend on Peter Pan?

It’s like magic. So Disney did that, and it works really well. They don’t know who values which ride, but they do know that many people value all the rides enough to pay the full ticket.

When you sell your MSP product, you are selling a bundle, even if you don’t call it a bundle and you are a lot like Disney.

You might think that you can separate each individual service, but you can’t, really, so you still incur the cost but don’t get money for it in return.

That’s the opposite of magic. It’s bankruptcy (not magic did not sound good).

So, when designing your product, consider how the entire product transforms your client, and maybe you can throw in an extra ride or two to sweeten the pot.

How can an MSP service bundling strategy maximize your profits?

Owning and operating an MSP can be a competitive landscape at times. So, finding ways to maximize your profits while ensuring your clients are satisfied are two of the most important things. Bundling your services addresses both of these critical factors. Here are several key benefits of bundling your MSP that demonstrate how this approach can lead to enhanced profitability and client loyalty.

Increased Value: When you bundle your services, your clients will perceive a greater overall value. People generally appreciate the convenience of a comprehensive package that addresses multiple needs, making them more likely to accept the higher investment compared to purchasing your services individually.

Simplified Pricing: Bundling simplifies your pricing structure, making it easier for clients to understand what it is they’re paying for. This clarity reduces decision fatigue and will help your clients see the benefits of choosing a complete package rather than cherry-picking individual services.

Faster Onboarding: With bundled services, you can maximize the time spent on negotiations over individual service prices. Your clients will see the package as a complete solution rather than separate line items to debate, making them less likely to ask for price reductions.

Client Retention: When your clients receive a well-rounded solution that addresses their various needs with attention to detail, they’re more likely to stick with your MSP for the long haul. With your holistic approach to their challenges, they’ll be less likely to seek alternatives to meet their needs.

Your Reputation: Making sure your clients are fully protected will not only encourage them to stick around, but it will also make them more likely to give your MSP a positive review, send referrals your way, and generally speak highly of your work.

By embracing a bundling strategy, you position your MSP as a trustworthy expert in the industry. This will help you begin to nurture long-term client relationships that continue to enhance your reputation in the industry. This combination of increased value, simplified pricing, and comprehensive support leads to greater profitability and a loyal client base.

What exactly is it costing your MSP not to bundle your services?

All too often, MSPs face significant financial losses by not bundling their services. Why? Because they don’t realize that by offering their services separately, they’re opening the door for clients to focus only on the individual costs. Rather than understanding the value of the complete solution. AND you are incuring a lot of the same costs whether or not you deliver the service.

This ultimately leads to continuous negotiations, services being cut, and clients who have a, let’s just say, “unexceptional” experience with the MSP due to the gaps in service that they allowed.

So what exactly is it costing you?

Client Dissatisfaction: Not being clear about why a comprehensive plan is so valuable, you are doing your clients a huge disservice. They want to work with you because you’re the expert. Let them know that all of these services are essential and that none of them should be cut out. It will leave them unprotected and that is not something you are willing to do. Stand firm on your bundles and your commitment to quality even if you lose “those clients” sometimes.

Plunging Bottom Line: Selling your services in the fashion of an a-La-Carte buffet will cost you multiple thousands of dollars each year. It might start with the penny-pinching client on the phone, but it doesn’t end there. Your revenue is also affected by your reputation, referral potential, and your time. If your reputation is sub-par because you have allowed gaps in your services due to clients like these, you may have trouble finding and signing on new clients in the future, or getting referrals. Your time is also valuable, and if you spend too much of it on negotiations, you lose the ability to spend it on growing your business, attracting new leads, and increasing your bottom line.

Your Reputation: Allowing your clients to select randomly what they think they need out of your line items instead of bundling your offer can leave them unprotected in critical ways. If things break or go wrong (and they will), it has the potential to seriously harm your reputation. Failing to address these crucial gaps in essential services can make it difficult for you to attract new clients in the future.

Overall, it’s costing you more than you think. Am I right?

So, enough with the buffet style, just bundle up!

How to Bundle Your MSP Services and Tailor to Specific Target Markets

When it comes to bundling your services, you also need to be mindful of tailoring your offerings to address specific client challenges rather than simply pushing generalized services.

The objective here is clear–Solve a real problem for your clients.

Don’t just try to sell them on particular software or tools.

By creating bundle offers around specific issues like cybersecurity or data management, you not only demonstrate your understanding of your client’s needs, but you also create a more flexible approach to the solutions you provide.

The truth is, nine out of ten times, your clients won’t actually care which software you use—they just want to know that their problems will be effectively resolved.

So, by focusing on the problem rather than the specific tools, you are essentially crafting an offering that will keep your clients happy and your operations efficient.

Fellow MSPs, Here’s Your Challenge: Will You Bundle or Bail?

Hopefully, it’s now clear how important bundling your services is. It’s not just a strategic move but a necessity in today’s competitive MSP landscape.

By presenting a comprehensive solution that showcases the full value of your offerings, you both empower your clients to make informed decisions that prioritize their security and efficiency and maximize your profits.

Remember, it’s not just about the individual rides; it’s about providing a thrilling, seamless experience that keeps your clients coming back for more. And that you are being paid what you deserve for excellent service.

So, take the plunge, bundle up, and watch your MSP thrive as you elevate both your client’s operations and your bottom line.