How do bundles work?<\/strong><\/p>\n Bundling is a sales and marketing tactic used to demonstrate added value to customers. If a customer purchases just one product, they\u2019ll pay a specific price. However, they\u2019ll get a better deal by purchasing a bundle with several products because the overall cost would be lower than buying each product separately. In fact, a study by fusebill<\/a> has shown that customers who purchase bundles can save up to 15%. You can create bundles yourself by combining your own services (like consulting, product training or technical support) with Office 365. On the other hand, if you\u2019re not comfortable building your own bundles, you can resell ready-made packages<\/a> offered by cloud providers like Sherweb. More about that later.<\/p>\n Whether you\u2019re a seasoned reseller or you just entered the market for Office 365, you can\u2019t afford to ignore this opportunity. Here are 3 ways you can use bundling to increase your profits.<\/p>\n 1. Present your bundle like a new product<\/strong><\/p>\n The great thing about bundles is that you can add a new product to your portfolio without developing anything new. For MSPs who operate on a Monthly Recurring Revenue model (MRR), higher-priced bundles will have a cumulative effect because they\u2019ll get more money each month for the life of the client\u2019s contract. Here\u2019s an example. If a bundle adds $15 per user to your Office 365 fee every month, you\u2019ll earn $180 more per user over a 12-month period! Bundling offers MSPs an easy way to sell more products to the same customers. And since many of your small business clients have grown accustomed to paying a monthly fee for their IT services, making the pitch is a lot easier than you think. A recent survey by Clutch<\/a> showed that 59% of SMBs surveyed have changed their IT services from a break\/fix model to subscription-managed services.<\/p>\n 2. Use your expertise <\/strong><\/p>\n As we mentioned earlier, you won\u2019t get rich just by selling Office 365. Evan Hamilton, a Business Development Manager at Sherweb, said the key to success is to change your approach. \u201cYou want to take the conversation away from a product like Office 365 that\u2019s available everywhere and focus on the value of the total solution and your expertise.\u201d<\/p>\n In other words, you have to focus on value. Wondering how to do it? Here are a couple of examples.<\/p>\n There are many other ways to promote your services in a bundle, but one thing is certain. You won\u2019t be successful reselling Office 365 if you can\u2019t increase your margins.<\/p>\n Did you know?<\/strong><\/p>\n A 2018 benchmark survey<\/a> carried out by software company Kaseya showed that profit margins for 36% of MSPs surveyed ranged from 1-10%. Fifteen percent of respondents, who ran MSP firms in 40 countries, reported no profit at all.<\/p>\n Source: Kaseya 2018 MSP Benchmark Survey Results Report<\/p><\/blockquote>\n 3. Build customer loyalty<\/strong><\/p>\n Satisfied customers mean repeat business. Research has shown that existing customers<\/a> are 50% more likely to try new products and spend 31% more compared with new customers. By providing your customers with a complete solution in a bundle, you\u2019re also building a stronger relationship. As Hamilton points out, \u201cWhen you and the customer have made a greater investment in one another in terms of the number of products and services, it\u2019s more complicated and logistically difficult to break the relationship.\u201d A study by VComp Inc<\/a>. has shown that a customer who opts for a bundle will not switch to a competitor even if he is offered a better deal on a single item in the bundle. So, contact your Office 365 customers from time to time to see if you can pinpoint any opportunities to upsell and cross-sell other products and services. It\u2019s a great way to increase your revenue and make sure your customers are getting the most from the current technology. One more thing. Increasing customer retention<\/a> by as little as 5% can increase a reseller\u2019s profits by up to 95%. That\u2019s good to know.<\/p>\n Sherweb\u2019s new offer for Office 365<\/strong><\/p>\n As we mentioned earlier, you can build your own bundles for Office 365, or you can resell packages offered by some cloud providers. Sherweb has restructured its Office 365 plans to include a new offer that is unique to the market. It includes security, backup and eLearning solutions at no extra cost.<\/p>\nLearn more about how bundling can increase your profit margins<\/a><\/h3>\n
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