Note: This site is intended for technology consultants. I maintain this site for educational purposes. If you are not a technology consultant and you are interested in a cloud service such as this, I won’t sell it to you. But if you contact me I will try to help you find a technical consultant who can assist you.
What is the Cloud Five Pack?
The Cloud Five Pack is not something I sell to technology consultants. This is what we sell to our small business clients. I find it ideal for clients who have 15 or fewer employees . . . and that’s just about EVERY small business.
The basic goal is simple: Provide all the technology services a client needs with rock-solid services at a reasonable price. What else can you ask for?
I honestly believe this is the right combo to sell to 1-15 user clients. Perhaps 95-99% of all small businesses could use this as their core technology. Here’s the thinking:
- What do small businesses need? They need a place to store their information; they need email; they need anti-virus and spam filtering; they need a web site; their systems should be monitored, patched, and updated; they need Microsoft Office; and they need some basic planning so they can keep up with the changing world of technology.
- This cannot cost much! Let’s be honest, small businesses don’t buy new computers every year, update software all the time, and spend a lot of money on things they don’t need. So it should be at a reasonable price.
- Ideally, the client will engage in regular maintenance to keep things working.
- The client should be able to buy additional tech support hours as needed.
With those four points in mind, we put together a set of offerings. This is our own bundle. We use Microsoft Azure, Amazon Web Services, Rackspace, JungleDisk, Intermedia, and LogicNow.
But you can use something completely different! You can sell Office365 directly, or through AppRiver or 1,000 other resellers. You can bundle things up differently. You can do whatever you want.
The goal here is to show you one way of doing it.
The way we bundle this, it is very profitable. We started with pretty much this same set of services back in 2008. At that time we did not include MS Office and we charged $249/five pack. We sold this to 15 clients the first month we offered it! Yes, they were all existing clients. But still. You gotta admit that kicks butt.
Here’s a screen shot of our primary sales sheet as of August 2016:
What’s the Managed Service Component?
The core “5 Pack” include remote monitoring and patch management. That means that our agent is on every machine and we apply patches, fixes, and updates as needed – automatically with the LogicNow software.
That basic package ($299) does not include any labor. Period. So if clients have an issue because Outlook won’t open, they need fix a printer, or someone can’t get to the Internet, we charge for that. And we charge $160/hr. So it doesn’t take very long before the client realizes that it’s cheaper to buy managed service.
With managed service, the 5-user package goes to $599/month. That’s up to five Microsoft Office licenses, five AV, five spam filtering, five mailboxes, etc.
More importantly, the Managed Service component means that we cover all labor that’s related to maintenance of the operating system and software one those five computers. Maintenance means just that – maintaining the systems. Making sure everything is working.
Managed Services does not include Adds, Moves, or Changes. So if you need QuickBooks installed, that’s a billable charge. As soon as it’s working, then it’s covered under Managed Service. So the “add” is billable, but the maintenance is free.
What about 2-User and 3-User and 4-User Networks?
Those are all included in the Cloud 5-Pack! This price is very reasonable. And we’ve had plenty of clients what had 2-3 users and realized that the price is so reasonable that there’s no point in arguing.
Having said that, I had a coaching client who was simply afraid of charging that much for 2- and 3-user networks. So she created a Cloud 3-Pack along the same model. At the time, I charged $249 for a 5-pack. She realized that there’s overhead in managing a client, no matter how small they are, so she couldn’t just charge $150 for a 3-pack. So she ended up charging $175 for the 3-pack.
And because her pack size was so small, she ended up selling individual licenses. I would not do that. I would not recommend that you do that. Stick to your guns!
If a client doesn’t see the value in this, then sell everything separately. It will probably cost them more.
Splitting this up is more about your fear than about actual client resistance!
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I’m going to start an FAQ Page, so send me your questions to karlp at smallbizthoughts.com.