While some larger communications providers might be overlooking the small business market, YOU can use this to your advantage. As a smaller VoIP service provider, you have the ability to adjust your pricing model to not only meet the needs of these SMBs, but also see a return on your investment.Over the years, companies have tried and failed to fill the void in the SMB market for communications services. Many times, their efforts have been unsuccessful because of the pricing mistakes they make at the very beginning of their outreach. In this post, we will outline three common mistakes that you should avoid.
VoIP Reselling Pricing Mistakes to Avoid
1. Matching Competition's Pricing
Managed service providers and VoIP resellers have many targets for their businesses. Most targets focus on improving financial performance, market penetration, and simulating usage. Well-established marketing and brand strategies are designed to support these goals.
But what about pricing?
Copying a competitor's pricing without taking your own goals into account does not work toward achieving your targets. Your competitors have different goals than what you might be trying to achieve. Don't focus on the bottom line only - that's what the big brands are doing, and that's what your target market wants to get away from.
Don't feel like you have to match pricing to make the sale. Instead, price fairly and focus on the value you bring to your clients. They are getting the services they need in an easy-to-use platform, with someone handling all the setup and more accessible customer support. Those offerings - and more - have more value beyond the monthly bill.
2. Selling Everything To Everyone
Don't offer more features just for the sake of saying you have more features. It can be tempting to look at the features and services that other companies are offering and add those features to your own offering.
Although it may look impressive to have a very long feature list, when it comes to closing the deal, amassing a long list of possible features is not an effective way to meet your client’s needs. Most of the time, small businesses only need and want a fraction of the features and services that are available on the market. Investing in a wide variety features that your customers might not even end up using is a quick way to hurt your ROI and create clutter in your product offerings.
If your target audience is only interested in a certain feature set, and you're offering up something else which is of no use to them, it just shows you're not listening. Listen to your customers and strategically add new VoIP solutions and features.
➤ Related Content: White Label vs. Traditional VoIP Reseller Services
3. Charging For Multiple Devices
More and more end-users have multiple devices. Technological advances over the past few years have led to a sharp increase in the number of small business end-users needing access to multiple devices. In fact, it is becoming very common for each user to have a desk phone, mobile phone, and a softphone on their computer that are all used for work in different situations.
When creating a pricing model, avoid charging for each user for each of their devices. If you incentivize your customers to adopt your services on multiple devices, hey are more likely to become a loyal, long term client.
Create stickiness, so that they don't want to consider another vendor.
It's very easy to get overly concerned with wanting to support every model and every price point. Make sure you are comfortable with your offering and are able to support that offering while maintaining margins and keeping a close eye on your ROI.
Want to learn more strategies, you as the reseller, can implement to attract more business? Download our latest whitepaper, Disruptive Pricing For The SMB Market, for more insights and strategies so that you can remain competitive and close more business.
➤ Request A Demo Of Our White Label VoIP Platform
Don't settle for 15%-20% sales commissions. Grow your business faster with the white label platform that allows you to achieve margins up to 70% - allowing you more control of your business.
About us: RingLogix offers a white label VoIP platform - RingOS - that enables Partners to sell, provision, invoice, and support their own branded VoIP and UC services. We make becoming a VoIP provider easy with a managed VoIP switch, instant order activations, hassle-free number porting, multiple services, and a flexible billing system.
