Why prospects price shop MSPs (& how to end it forever)

Price shopping often doesn’t start with the prospect, it starts with the MSP… find out why. Also this week, why MSPs feel overwhelmed even when things are good, and clever marketing ideas from outside the channel.

Welcome to Episode 330 of the MSP Marketing Podcast with me, Paul Green, powered by the MSP Marketing Edge.

Why prospects price shop MSPs (& how to end it forever)

Have you ever had a prospect say no to you because they believed your MSP was just too expensive? Lots of MSPs think that prospects default to price shopping because they’re cheap, difficult, or just not serious buyers. And it’s so easy to blame the economy or your competition or how the market is right now. But here’s the uncomfortable truth… prospects usually aren’t born price shoppers… they’re trained. And more often than not, they’re trained by the MSP itself through marketing and sales behaviour that’s well-intentioned, but hits in the totally wrong way.

Let me give you some examples so you can see if you are doing this by accident. I believe the problem of price shopping doesn’t start with the prospect, it starts with the MSP. In fact, it starts with the signals that you send through your marketing and your sales process, often without even realising it. Every interaction either trains a prospect to compare or it trains them to trust. And most MSPs accidentally train comparison, price comparison especially. Let me show you how.

One of the biggest ways that MSPs create price shoppers is by leading with services instead of leading with outcomes.

So when you talk about monitoring, patching, backups, antivirus, response times and tickets and stuff like that, you’re just listing features and that makes you look identical to every other MSP. And when things look identical, you’re just making it too difficult for the prospect to differentiate you from all the other MSPs. So the only logical way to choose is price from their point of view. You’ve taught the prospect that MSPs are interchangeable, bad, bad, bad.

Another big one is quoting too early. MSPs do rush in sometimes to give a price because they want to be helpful or they want to keep momentum or they want to avoid awkward conversations. But when you give a big number before establishing value, context, and fit, you’re effectively saying this decision is mostly about cost. So the prospect does exactly what you’d expect a rational human to do… they shop around. And by the way, that’s not a reason to not have a price estimator on your website. A price estimator that gives them a rough price in seconds is good, but jumping straight from initial conversation to quote, that’s bad. You’ve got to give them a specific quote at the very end of the process when you’ve got to know them and what they’re looking for and their outcomes and whether or not you guys are a good fit.

Then there’s the problem of treating every lead the same. If you have the same proposal template, the same pitch, you’re using the same language, it’s the same packages for everyone. If there’s no sense of personalisation, how can it feel relevant to your prospect? There’s no emotional anchor there. And when there’s no emotional anchor, again, price just floats to the top.

MSPs also train price shoppers by apologising for their pricing. People say phrases like, “Oh, I know we’re not the cheapest…” or, “Oh, we might be a bit more expensive, but…” why would you do that? ” In fact, the moment that you say that, you have framed price as the objection, you’ve invited the prospect to challenge it, which is crazy.

Another subtle one is overexplaining and justifying. When you feel the need to defend your price, line by line, then you kind of signal uncertainty and that encourages comparison.

And then there’s websites. So if your web...