When a manager of a hotel and resort complex contacted Bryan Sullo, vice president and cofounder of Clocktower Technology Services with a request for a backup system proposal, Sullo knew it would be an easy BDR (backup and disaster recovery) sale. Just a day earlier, the resort’s primary server went down for a couple of hours, disabling the retailer from being able to accept and confirm room reservations as well as preventing it from being able to process credit and debit transactions at its hotel, golf course, restaurant, spa, and gift shop. Recognizing how lucky it was to get a second chance to back up its data, the manager was ready to take action.
As Sullo predicted, the resort prospect was happy with Clocktower’s BDR proposal and willing to move forward with the purchase. However, when Sullo proposed to bundle the BDR solution with a managed services agreement, that’s when the objection occurred. “Even though their IT person had resigned, the resort manager admitted that he liked the idea of having someone on-site who could troubleshoot computer issues, and he felt this was a better option than paying for remote management services,” says Sullo.
What followed next was a textbook response to this common objection.
Sullo showed the managers a side-by-side comparison of the customer’s two IT options. In the first option, he showed a yearly cost comparison between hiring an IT employee ($80,000 per year taking into consideration salary and benefits) vs. the yearly cost of the managed services program, which was $48,000. What really helped Clocktower overcome the objection was showing the key advantage that the managed services has over the other option: 24/7 support. “With our managed service, which is backed by our vendor’s help desk and NOC (network operations center) support, we can field clients’ calls any day of the week and at any time, and they don’t need to worry about coverage during vacations or sick days either,” he says.
“Additionally, when clients call our help desk, they don’t have to leave a message; they connect to a real person who’s based in the Hong Kong, who’s knowledgeable about IT, and can resolve 70 percent of problems on the spot without involving our company in any way. This is a huge benefit to our company because it allows us to concentrate on scheduled work rather than constantly responding to emergencies.”
Within a couple of weeks, Sullo convinced the resort managers to give the managed services model a try. “The biggest obstacle with selling managed services is that it’s a departure from the way people are used to doing things,” says Sullo. “After clients experience the benefits of managed services, they will never want to go back to the old way of doing things.”
To discover how Sullo turned the initial managed services contract into a 3x upsell, be sure to check out: Lead With BDR, Follow With Managed Services.