Subscription-based managed backup services provide more long-term value than a perpetual license. They give your customers lower upfront costs, cloud access, continual updates to the latest software, and comprehensive support. And they give you an extra boost of recurring revenue. In fact, managed backup services are a win for everyone—and we want to help you get the most out of this service.
If you already offer backup solutions, then chances are you’re also providing customers with support for those solutions, but you might not be charging for it. By switching to a managed backup service, you can assure your customers that when they need extra support or guidance, you’ll be there. Plus, you’ll be getting paid for the valuable expertise you provide. If you’re still unsure whether managed backup is right for your business, you can find more benefits, considerations, and steps to get started in our comprehensive guide: Grow your business with managed backup services
Once you’ve decided to provide managed backup to your customers, how do you sell it?
Positioning managed backup can feel daunting, so we’ve broken it down into two simple steps: setting an appropriate price and selling its value to your customers.
The price of your managed backup service needs to cover two bases:
If you already offer backup to your customers, you’ll already know your price point for the backup license and storage. So, let’s focus on charging for your time.
You’ll need to consider how long you’ll spend managing your customers’ backups, which may be as simple as checking your backup platform every morning to see which backups ran successfully and which didn’t. You’ll also need to factor in the potential support your customers might need each month. This can include everything from remote fixes to onsite visits, so it’s important to get it right. Take a look at the time you’ve spent working on your customers’ machines in the past and find an appropriate average, price it up to your hourly rate, and you have your price.
The way you price and offer managed backup doesn’t need to be completely rigid. Whatever your business model, there will be an appropriate pricing structure for you.
When you’re packaging managed backup services, there are several options:
| Usage-based: Charge based on what’s actually used per device with the option of stipulating a minimum fee | |
| With or without monitoring: Customers can choose to monitor the backup themselves or outsource that service to you | |
| À la carte: Customers can choose the service they want from a menu of options | |
| All-you-can-eat bundle: Every service included in a ’security bundle’ for a fixed price |
After you’ve set an appropriate price for your services, it’s important to communicate the benefits managed backup will give to your customers.
Start by underlining the financial benefits of having a set monthly price for backup services.
Having a fixed cost per month for backup services gives customers more foresight when setting their budgets. If they already pay for ad hoc support and fixes, you can use previous billing to show how managed backup will compare while helping them avoid unexpected costs in the future.
For example, a customer may spend $100 on fixes one month, and then $1,000 the next. You can demonstrate that by spreading the cost over set monthly payments, they’ll get all the valuable support they need, when they need it. And it will be a lot easier to budget for it.
It’s also important to show customers the value of your expertise, and how it will give them one less thing to worry about.
By managing their backup for them, you’re relieving them of the time it would take them to do it themselves and giving them the assurance that their data is being looked after by an expert.
At NovaBACKUP, we deliver flexible, all-inclusive data protection solutions for IT service companies and professional offices worldwide. Our team of specialists are experts in all things backup - and ready to help you maximize the profitability of your backup services.
Schedule a call to talk to one of our backup experts about your managed backup opportunities, and how you can successfully realize them.
For more insights into how managed backup services can help you grow your business, check out a clip from our recent Partner Update. And watch our webinar to explore how managed service providers are getting more out of their backup business through unique service packages and offerings.