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Rate-Cuts are Bad News for Resellers

No, not interest rates. Backup Rates. The price per GB that you charge your clients to ensure they can recover from almost any disaster imaginable. It can be hard to convey the value of a service that only comes to the fore when all other options have been vaporized. Just like insurance. Rather than sell the service properly by creating value and enabling clients to see a real ROI over X number of years, some IT companies take the easy route by using cheap overseas storage, creating a number of problems.

We all know the fundamental differences between local and overseas storage. By using an overseas provider, IT businesses can avoid the price objection by selling storage at a ridiculous price. In doing so they either making a small commission, or put a miniscule margin on it to keep clients from objecting.

The AUSTRALIAN marketplace will pay anything up to $10 PER GIGABYTE, for small backups. Any business owner who refuses to fork out $10/ month to at least back up their accounting file needs a stern talking to. Or a bigger IT budget…

If you feel that you can’t sell an automated, offsite backup solution to your clients at the current market rate, then we need to talk. We’ve helped countless small businesses overcome client price objections (among others) to provide their own brand of backup and in turn, make thousands of dollars a year in line with current prices.

The moral of the story is this: Until market saturation dictates lower rates, IT providers are doing themselves out of thousands of dollars every year by ignoring current market prices for Online Backup.