Posts Tagged ‘service pricing’

Are Your Service Revenues Under Pressure?

November 11, 2012

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. (more…)


Could Your Customers Survive Without a Maintenance Agreement?

June 21, 2011

In a recent workshop focused on Defending Maintenance & Support Pricing we had a great discussion about the value of the maintenance agreement for technology services. The consensus was that customers are putting pressure on technology suppliers to lower their service prices and are threatening to drop their maintenance agreements all together. If this happened it would have a major impact to the finances of all tech companies. But, will it ever happen? Will customers decide to “self insure” and not pay the service fees just to reduce their total operating expenses? I don’t think so! If they do it could have catastrophic results! (more…)