I have heard MSP partners upset that bigger entities come in the market and purchase smaller MSPs in the area. Trying to fight this inevitability is like attempting to change the weather… it’s going to rain when it’s going to rain.
Instead, we should look at using this to our advantage in meeting with prospective clients. There is a stigma of acquisition. It often leads to price increases and weakened relationships between partnerships. Customers like to know the technicians, account managers, and owners they work with, and any changes can cause new hurdles to pop up.
If you’re in this space, you know the feeling. MSP and vendor acquisition is on the rise. How many times has your favorite product or service been acquired in the last 5 years? What has your experience been when this happens?
If you are interested in growing and selling your MSP, I am not attempting to dissuade your firm doing this. However, it’s important to do your due diligence in selling to the RIGHT group.
The necessity of relationship building for MSPs
People buy from people. When you are meeting with your prospective client, be sure to build an authentic relationship. Discuss how long you have been a local provider, point out local customers that are raving fans, and spotlight your employee/customer retention. Be sure to emphasize your commitment to the local community.
Nowadays, prospects are almost always talking to multiple potential providers unless they are a referral. If you’re still completely relying on referrals, you are unlikely to meet aggressive long-term growth goals.
If a customer is open with you about the other providers they’re talking to, make sure to explain the pros and cons of local versus large. Most small and medium size businesses prefer to support local and this needs to be part of the conversation.
Discuss why local is the most logical choice
1. A fully staffed local presence. Explain that choosing local comes with reliable turnaround and MSP support that goes above and beyond.
2. Real people. Clients won’t get auto attendant after auto attendant just to begin getting help with their issues.
3. Knowing your techs. Clients naturally gravitate to certain techs. Losing that is a serious disadvantage for a larger MSP.
4. Local community support. Do you support local charities? Do your family members work in the business? Research your client’s LinkedIn to see if you know any of their connections and use this to your advantage. Can you name drop anyone in the meeting or have them vouch for your MSP?
There are many ways that you can stand out as an MSP. Embracing local is logical, and the “people buy from people” mentality will help you open doors and close deals. Don’t fear acquisition; use it to your advantage in the MSP market and embrace local.
