Worried I quoted an office too high.

[Edge Tech NY]

Got a call to survey an office yesterday. Smaller office, 4 PCs and 1 server. Quoted them for a MSP style plan which is what th owner wanted. I said $300/month unlimited calls and weekly remote maintenance etc.

Haven't heard back yet. Sent it yesterday than followed up with a phone call today but owner was on phone.

I may have quoted a tad high being its a low service call office but I didn't want them to not even negotiate with me and just go with someone else. I hope that's not happening.

 

[YeOldeStonecat]

Hopefully not.
On initial quotes to a potential new client, we quote 3x things.

*Our first "all you can eat" MSP plan which is unlimited remote and onsite support.
*Our "hybrid" MSP plan...which is 50% of the above price, unlimited remote support, but hourly "onsite" support.
*Our hourly rate for pure call break-fix...no MSP.

Gives them some options.

 

[SAG]

Options are good, but in my opinion try to keep it at no more than 3. Any more than that and things get confusing.
I think Angela (TechLady) posted a nice image flyer on the subject not too long ago.

It's been what... 24hrs since you sent it in?
It takes me that long to figure out if I want cheese on my burger.

 

[marley1]

I wouldn't mind seeing that flyer.

With that price is that just labor? Or are you supplying all services (antivirus, online backup, etc)?

 

[Rosco]

One day is not to long. I would not worry yet. This is a huge commitment. They need time to think and decide what is right for them. When i give a huge quote it can sometimes take a week or two for them to decide.

I do not have any unlimited clients as of yet. But i do require at least 5 machines. Really with less than that i do not feel it is worth it. I charge $100.00 per computer and $175.00 per server.

With an office that size i like to do a more a hybrid plan. Doing a managed antivirus with a 20% discount on the labor(both onsite an d remote). Since you said they do not have many problems that might fit in better for them. Easier on their wallet. Plus a small office a lot of time would have a hard time justifying a large IT bill in this economic climate.

 

[frederick]

I don't think you quoted too high. Give it a few days. I drop off on Monday, check up on them by thursday if i heard nothing, and then call on Monday or Tuesday.

 

[drjones]

Don't freak out about it. They've barely had any time to review it, let alone make a decision.

I've sometimes kept in contact with people for months before they'd make a decision on an IT deal, whether it was a new server or whatever.

Be persistent, and not annoying. No more than one or two points of contact per week.

In your follow-ups, you could say something like, "just wanted to see if you've had a chance to review the proposal and how it fits with your budget. We can make adjustments to acommodate any clients' budget."

 

[drjones]

I also agree with giving people options; 3 is the magic number.

Good, better, best.

Ford, BMW, Rolls.

 

[edtech]

I'm an IT manager at my day job so let me give you the perspective from the other side of the desk. When I look for a product or service I am required to do a few things before just making a decision. I have to perform "due diligence" and ensure the company is getting the best value for the price. One caveat, this may not be typical and your mileage may vary. So here is what the process looks like...

1. Receive "pain point"/ technology need from business unit.
2. Research product or service to meet above need / relieve pain point.
3. Request competitive quotes from at least 3 vendors. Vendors are usually selected from approved vendors list that purchasing dept. maintains. (Purchasing has their own criteria for who is on that list, terms, DIFOT(delivery in full& on time), quality return, customer service, etc)
4. Review quotes, create comparative matrix listing value vs. price. Select vendor(s) based on best value. Notice I said value not price.
5. Review cost/benefit ratio with business unit champion to determine if feasible to create project. Ie. if the cost is too high then research alternatives.
6. If deemed feasible project determine budget & expense accounts used. Sometimes this comes out of my direct budgeted accounts sometimes from the business unit's accounts or from a capital expenditure project depending on the cost and other criteria.

Up to this point, if fast tracked, you are looking at about a week before I contact a vendor.

If it is determined the project requires capital expenditure then it continues and I usually contact the vendors and let them know their proposals are still being reviewed...

7. Create capital expenditure request packet. This packet contains a proposal listing business issue, researched proposal plus alternatives including cost of doing nothing, the above quotes, contingency budget and any other supporting documentation.
8. Capital expenditure is then submitted to cross-functional "capex team" made of senior managers, ie. CFO, VP of operations, VP of facilities, etc. This team usually meets once a month to review open requests.

9. Capital expense is returned either approved or with questions if not enough detail was submitted originally. If approved, I then have a capex number to write purchase orders against and can then contact the vendor with a purchase order number.

At this point it could be up to 1 month. If the capital expenditure is returned with questions then it could move to 2 months before I'm able to actually purchase.

Of course, during this time I'm usually in contact with the selected vendor trying to get more details to answer the questions asked so they know where they stand in the process.

I know this is a long post but thought it would help to know how the process may look from the other side.

As another note, I'm never offended if a vendor asks about the process and i usually explain it up front if i never worked with them before so don't be afraid to ask how the process works as it could be completely different from how mine is.

Edtech

 

[Magic Miguel]

I'm an IT manager at my day job so let me give you the perspective from the other side of the desk. When I look for a product or service I am required to do a few things before just making a decision. I have to perform "due diligence" and ensure the company is getting the best value for the price. One caveat, this may not be typical and your mileage may vary. So here is what the process looks like...

1. Receive "pain point"/ technology need from business unit.
2. Research product or service to meet above need / relieve pain point.
3. Request competitive quotes from at least 3 vendors. Vendors are usually selected from approved vendors list that purchasing dept. maintains. (Purchasing has their own criteria for who is on that list, terms, DIFOT(delivery in full& on time), quality return, customer service, etc)
4. Review quotes, create comparative matrix listing value vs. price. Select vendor(s) based on best value. Notice I said value not price.
5. Review cost/benefit ratio with business unit champion to determine if feasible to create project. Ie. if the cost is too high then research alternatives.
6. If deemed feasible project determine budget & expense accounts used. Sometimes this comes out of my direct budgeted accounts sometimes from the business unit's accounts or from a capital expenditure project depending on the cost and other criteria.

Up to this point, if fast tracked, you are looking at about a week before I contact a vendor.

If it is determined the project requires capital expenditure then it continues and I usually contact the vendors and let them know their proposals are still being reviewed...

7. Create capital expenditure request packet. This packet contains a proposal listing business issue, researched proposal plus alternatives including cost of doing nothing, the above quotes, contingency budget and any other supporting documentation.
8. Capital expenditure is then submitted to cross-functional "capex team" made of senior managers, ie. CFO, VP of operations, VP of facilities, etc. This team usually meets once a month to review open requests.

9. Capital expense is returned either approved or with questions if not enough detail was submitted originally. If approved, I then have a capex number to write purchase orders against and can then contact the vendor with a purchase order number.

At this point it could be up to 1 month. If the capital expenditure is returned with questions then it could move to 2 months before I'm able to actually purchase.

Of course, during this time I'm usually in contact with the selected vendor trying to get more details to answer the questions asked so they know where they stand in the process.

I know this is a long post but thought it would help to know how the process may look from the other side.

As another note, I'm never offended if a vendor asks about the process and i usually explain it up front if i never worked with them before so don't be afraid to ask how the process works as it could be completely different from how mine is.

Edtech

Are you an IT manager for an office that has only 4 computers and a server?

 

[Edge Tech NY]

I'm only inpatient right now because they guy completely led me on in thinking were gonna work together and hes all about my company. not hearing back right away shocked me and now im anxious.

 

[Tony_Scarpelli]

if you receive every quote then you are quoting two low. I try to get 1/3 or 1/2 of all quotes. If I get more than that I am way too cheap. If I get less than 1 in 3 then I might be a little high.

The importance of this ratio is if you get too many quotes you could be costing yourself greatly in profits by taking only the low quality low profit jobs.

It is more difficult to make a profit and stay in business if you take busy work than if you do not get most of your bids.

 

[mtech88]

I'm only inpatient right now because they guy completely led me on in thinking were gonna work together and hes all about my company. not hearing back right away shocked me and now im anxious.

If this is the case then say exactly that to the client. I would call him/her and say I got the feeling from our meeting you are ready to do business, should I stop out today to finish the paperwork? At that point you'll know if you were right in your assumption or wrong. If he/she gives you some objections, great! You can overcome those. If he/she doesn't give you objections and says something like I'm still thinking about it ask him what he's thinking about. If he balks at price don't reduce your offering. Instead build value as to why partnering with your company is a wise investment.

As far as pricing is concerned I think you might be a little low depending on what you are covering. If you're providing a all inclusive MSP package you are a tad under market. However, if this is your first MSP style client you probably need to gain some traction. Pricing yourself a little under market to earn the business is ok. I would put them on a one year agreement and raise their pricing accordingly after the first term.

 

[brandonkick]

I wouldn't get too antsy just yet. Give if a full week and then do a follow up call with them. Let them know your looking forward to helping them with their IT needs and that if they have any additional questions or concerns that you can help them with that you'll be glad to help in any way possible.

$300 a month for an "all you can eat" style plan (IMO) is decently cheap. A full time minimum wage "tech" would cost them easily three times as much, and who knows what your going to get for minimum wage.

I think you came in at an OK price and you just need to wait a little bit. I'd call back and follow up in 5-7 days.

 

[Tony_Scarpelli]

Once I give a quote, I call every day until I get an answer of yes or I know they hired someone else. The only exception is if they said we have a management meeting to discus it Tuesday call me Wednesday morning.

Then I will call Monday and ask if there are any resources I could give them to help make the presentation to management and make their job easier.

This puts me in their mind, if someone came in with a different quote that changed the rules of the game I have a chance to modify it. It puts me in their mind night before the meeting. It shows I care, and that I am very responsive.

Calling customers back is a sign of good will not PITA annoyance. however it could be the later sometimes.

 

[frederick]

Once I give a quote, I call every day until I get an answer of yes or I know they hired someone else. The only exception is if they said we have a management meeting to discus it Tuesday call me Wednesday morning.

Then I will call Monday and ask if there are any resources I could give them to help make the presentation to management and make their job easier.

This puts me in their mind, if someone came in with a different quote that changed the rules of the game I have a chance to modify it. It puts me in their mind night before the meeting. It shows I care, and that I am very responsive.

Calling customers back is a sign of good will not PITA annoyance. however it could be the later sometimes.

Calling back, yes. Calling back everyday...I don't know. Sometimes the squeaky wheel is too squeaky and must be dropped off at the next city dump.

 

[drjones]

Once I give a quote, I call every day until I get an answer of yes or I know they hired someone else. The only exception is if they said we have a management meeting to discus it Tuesday call me Wednesday morning.

Then I will call Monday and ask if there are any resources I could give them to help make the presentation to management and make their job easier.

This puts me in their mind, if someone came in with a different quote that changed the rules of the game I have a chance to modify it. It puts me in their mind night before the meeting. It shows I care, and that I am very responsive.

Calling customers back is a sign of good will not PITA annoyance. however it could be the later sometimes.

If you were trying to sell me something - anything - even if I wanted it desperately - if you called me back the next day, and then the following day, I'd never answer your call ever again, let alone if you called three days in a row.

That's bordering on harassment.

 

[Tony_Scarpelli]

In my experience you are more likely to error on the side of not talking to and communicating with the customer rather than over communicating.

My point is that you should follow up, follow up, follow up. If you do not then companies like mind are going to get your prospects and you are going to complain about that other IT company who must be doing something suspicious to steal your customers.

Human nature to fall on your strengths and avoid personal weaknesses.

Technically oriented people would prefer to make a presentation and let the facts talk for themselves "if you need me you know where to find me" sort of attitude.

This is why the most successful organizations are mixed between the very technically oriented who actually do the work and others who are very communication and customer service oriented who actually know how to book the work.

 

[brandonkick]

In my experience you are more likely to error on the side of not talking to and communicating with the customer rather than over communicating.

My point is that you should follow up, follow up, follow up. If you do not then companies like mind are going to get your prospects and you are going to complain about that other IT company who must be doing something suspicious to steal your customers.

Human nature to fall on your strengths and avoid personal weaknesses.

Technically oriented people would prefer to make a presentation and let the facts talk for themselves "if you need me you know where to find me" sort of attitude.

This is why the most successful organizations are mixed between the very technically oriented who actually do the work and others who are very communication and customer service oriented who actually know how to book the work.

I'll agree to that to some extent, however there is a point where enough is enough.

I had a company phoning me daily about selling a safety publication to our company to aide us in keeping in compliance with OSHA regulations. I actually liked the publication and felt it would "fill in the cracks" very nicely. However I quickly got tired of him calling and emailing daily. I was awaiting the response from the president of the company I work for as he was deciding on using the service or not. I even told the company pushing the safety publications that, and still I got daily phone calls and emails.

After about five days of it I told them not to call me back, and that I'd call them when the president gave me his decision. They called back the next day and I told them that I'd make the decision for them, and that we would not be using the service and that they were not to contact me again either via telephone or email.

Following up is a great skill and I believe it is what separates the bad salesmen from the good ones, but overusing it is probably just as bad as not using it at all.

 

[Cornerstone Technologies]

I call every day until I get an answer of yes or I know they hired someone else.

I personally would be put off by someone bugging me everyday for a decision. It might work for you and your personality, but I've had salespeople bother me everyday and it gets to be a bit much. Eventually, but the third time, I don't care what they are selling or how cheap, I make it a point not to buy their goods or services.

To the OP, I had a similar situation last year where a car dealership wanted a quote to manage four locations. The guy was gungho, and I figured it was like shooting fish in a barrel. Well, I submitted my proposal and waited a few days to follow up. I kept getting blown off and told he was in a meeting or something. I eventually showed up in a car that didn't have my logo on it and waited till the guy was in the showroom clearly doing nothing. In any case, turns out that one of my competitors and he were friends or some kind of associates, and they were just feeling me out to see how comprehensive my quotes were and how much I charge. Needless to say, I wont buy cars there anymore.

Basically, once the ball is in their court, there is little you can do from that point.