Which Pricing Strategy Is Right for Your Cloud BDR Services?
Ready to offer cloud backup and disaster recovery (BDR) services?
A managed service provider that wants to enter the cloud BDR services market will need to determine how to price its offerings, which may seem exceedingly difficult.
There are three common pricing strategies that MSPs may use for their cloud BDR services:
- Tiered pricing — Offering different services levels (ex. Gold, Silver and Bronze levels) allows MSPs to provide distinct cloud BDR services designed to meet the needs of both small and medium-sized businesses (SMBs) and enterprises.
- A la carte pricing — Enabling customers to pick and choose the cloud BDR services they want provides increased flexibility.
- Per user/per device pricing — This model ensures customers are billed based on usage.
So which of these pricing models offers the best option for MSPs?
The optimal pricing model may vary depending on an MSP and its customers.
In fact, BDR and remote monitoring and management (RMM) software provider Continuum points out an MSP’s business strategy may dictate which pricing model will work best, particularly when it comes to its cloud BDR services.
“Before you do anything else – even the physical work of the add-on – you need to map out your business strategy,” Mike Barnes, Continuum’s director of new partner acquisition, wrote in a blog post. “What are you looking to offer, and what are the main goals to be achieved? Do you want to drive additional revenue with existing customers? Simply fulfill current client needs? Attract new clients? Whatever your needs, it’s best to narrow down your managed IT services pricing strategy.”