HOW TO SUCCESSFULLY RAISE PRICES
Confidential - Active HTG Members Only - February 2017
as Part of a Service
Profitability Improvement Initiative
The most durable customer/supplier relationships are the ones which create a win/win business outcome for both parties. Ideally, your solutions and services help not only your client be more successful financially, but also even their clients.
Several cultural aspects of the IT service business conspire against win/win pricing: the technical people that deliver the service tend to be good Samaritan personalities; the sales people do as well, and fear losing customers based on cost; owners and executives of Solution Provider companies can sometimes lack business acumen. This article provides best practices for maintaining win/win pricing in a Solution Provider business.
The iron triangle of IT service business is the same in every IT company, everywhere in the world: rates, utilization and wages. And there are two ways to increase service margin: