Advice for Cloud Service Providers: Don’t Sell on Price

As most sales professionals know, when you sell on price, you immediately diminish the value of the service you’re offering. And yet, at the advent of the cloud a few years ago, that was the selling point used most often to communicate the value of the cloud. This was driven in large part by B2C providers that advertised heavily about how they could reduce consumers’ home phone bills. While this was obviously true, it created a framework that today’s cloud service providers still must operate within.

But here’s some advice for Interconnects and MSPs selling cloud services: Don’t sell on price.

cloud service providers

While it may be tempting to lead sales conversations with low cost and reduced TCO, it negatively impacts long-term ROI.

According to a recent study from consulting group KPMG, the time is right to sell the cloud based on the huge advantages it can bring to businesses. As one of the report’s authors wrote, “Cloud is much more than just another IT cost reduction lever.”

The study of business executives shows that they increasingly see utilization of the cloud as a way to run their business more efficiently by reducing costs and enhancing agility. When asked about what organizations expect from embracing the cloud, two of the top three objectives mentioned were enhancing new market entry and driving business process transformation. To be sure, almost half of those surveyed mentioned cost reduction as a key goal, but it appears it is no longer the driving force behind making the move.

In other words, your prospects are not focused on price; they’re focused on the upside of the cloud. And that means you should be too.

For Interconnects and MSPs, conversations with prospective customers should focus on improved business agility – how cloud communications can fuel unified communications and optimize productivity for their workforce. And let’s be honest – the odds are that your prospects already have some awareness of the financial advantages of moving to the cloud, so why put added emphasis on it? There’s far greater benefit for you to having a higher level discussion about transforming their business.

Yes, price will always be part of the discussion, but it shouldn't be the starting point. Rather, it’s the final piece of the puzzle.

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