If you want to close more sales without objections, price anchoring should absolutely be included in your presentation. With audIT, we price anchor with the Effective IT Monthly Expense.
Price anchoring is where you establish a price point the prospect can refer to when they are making their final purchase decision. If you do not create a price anchor, they will create their own.
Without your guidance, their price anchor will be what they are currently paying. This is why most average MSPs have to compete on price.
If your price is more than what they are currently paying, you're at a terrible negotiating disadvantage if they are anchored to their price. Instead, what you want to do is prove to them they are underspending and anchor them to the higher price.
The effective IT monthly expense is a simple calculation based on their audIT score.
The audIT score is calculated by the amounts of reds, yellows and greens plus the weight of each item. If all your items were red, the audIT score would be 0. If all your items were green, the score would be 100.
Here's how the Effective IT Monthly Expense is calculated
If their audIT score is 50 it means they are only getting half of what they should. If they are paying $2,000 per month and getting 50% of what they should, how much do you think that other 50% could cost?
The answer is simple. The other 50% could cost as much as the first 50% with all things being equal.
So in this case, the point we would make to the prospect is that if they are spending $2,000 and only getting a 50, they could spend double to have their current provider bring them to 100.
Now the price we are anchoring is $4,000 not what they are paying, So when we present our final solution, of $3,000, they will compare it to the higher price. The price anchor.
And now cognitively they should feel a sigh of relief that they are saving $1,000. Where without the price anchor, they would just see that you're charging $1,000 more than what they are paying.
This is the power of the Effective IT Monthly Expense. Make sure to use it in your proposed audITs by selecting the comparison audIT. Print the baseline as the first and the proposed as the second. audIT will take it from there.
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