Are Your Service Revenues Under Pressure?

As IT spending tightens one of the first budget line items many look at is the annual fees they pay for maintenance and support contracts. Indeed, numerous IT consultants offer to help enterprise buyers negotiate these fees down. One analyst told us he advises his clients to only pay 12% per year. That’s a far cry from the 18%-22% that most vendors are used to.
To address this challenge, we invite you to attend a unique training program, which is designed specifically for personnel with responsibility for selling maintenance & support – either as part of the upfront sale or at the point of renewal.

Defending Maintenance & Support Pricing™

December 11 – Westin Copley Place, Boston, MA
January 15 – Hyatt Regency, Santa Clara, CA
More information about the workshop, including pricing, and information about how to register, can be found here

“The training was well received and equipped our renewal team with the ability to effectively respond to customer objections. I highly recommend the program for any sales team that needs to explain the value of support.” – David Toulon, Sr. Manager, WW Service Renewals, Riverbed Technology

“This course will allow us to increase the rate of closure for our maintenance and support renewals.” – Greg Taylor, Global Client Services, Telcordia

“I thoroughly enjoyed the training and will be able to use the tools and techniques in my daily work.” – Regan Brekke, Manager, Global Premium Care, RightNow Technologies

“I loved the combination of relevant industry examples, participant interaction, exercises and content. The timing and results were just right.” – Elizabeth Klingseisen, Director of Services Marketing, Siemens Enterprise Communications
From the IT provider’s point of view, maintenance and support fees are critical to maintaining product and service quality – in bad times as well as good. Furthermore, pricing pressure on support and maintenance contracts directly affects IT firms’ revenue, margins, and ultimately EPS. Consider that services and support drove 74% of total revenue growth for large enterprise vendors during the last economic downturn, one study found. At the individual-company level, the following scenario illustrates what is at risk.
Consider a typical company with $100 million a year in maintenance and support revenue:
• The company earns 60% gross margins on this revenue, with maintenance and support representing 40% of the company’s EPS.
• If this company’s customers are able to negotiate a 15% discount on maintenance and support (from 21% to 18%) against the vendor’s top line, then the associated gross margin actually declines 25%. If you do the math, this means overall company EPS ends up taking a 10% hit.
Our experience and research shows that vendors can avoid this type of revenue erosion by putting the right set of policies, training, and tools in place.
The good news is there is a powerful business case for investing in maintenance and support. As a result of this training, participants will:
• Understand how to overcome the objections that customers raise
• Hear about success stories from within the vendor community
• Learn how best practice firms successfully defend their M&S pricing
• Learn how to build a business case for their maintenance & support offering
• Receive a copy of the VQ™ value quantifier – a first-of-its-kind sales tool that quantifies the value of M&S
• Understand how to develop effective bids, proposals and marketing materials that justify your M&S pricing
• Identify ways to increase the value delivered through value-added services
Defending one’s price requires a team effort. That’s why attendees include sales and account managers, renewal team members, finance directors, services marketing personnel, as well as pricing directors and analysts.
If you have any questions, please contact me at
Group discounts are available.

Once again, complete program information, including pricing and registration information can be accessed here


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