security-1Solutions Partner for
Security Designation
solutions-designation logo-FADE-1

 

 
MODULE 1

Introduction

 
MODULE 2

Performance

 
MODULE 3

Skilling

 
MODULE 4

Customer Success

 
MODULE 5

Appendix

 
MODULE 6

What’s Next

MODULE 2

Performance

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LESSON 2.4

Set Your Revenue & Profit ROI

Sell & Price On Value, Win On Profit 

Understanding your customers’ needs is essential when selling an IT-based security solution. This knowledge allows you to offer tailored solutions, build trust, communicate effectively, enhance customer satisfaction, and gain a competitive advantage. 


Key Focus When Pricing Your New Solution 

Building Trust: 

  • Why it matters: Customers need to trust that you understand their security concerns and can provide reliable solutions.

  • Benefit: Demonstrating that you care about their needs helps build trust and credibility, making customers more likely to engage with and purchase from you. 

Effective Communication: 

  • Why it matters: Knowing your customers’ needs allows you to communicate the benefits of your security solution in a way that resonates with them.

  • Benefit: You can highlight the features and advantages that are most relevant to their situation, making your pitch more compelling and understandable. 


By focusing on these aspects, you can ensure that your IT-based security solutions are not only well-received but also foster long-term relationships with your customers.

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START HERE

What Exactly Is a Subscription Platform? 

A subscription is simply a set of features, that have no obvious benefits to a business, apart from our industry telling them they need a particular SKU.  

As a result, it is a cost customers will always look to reduce. 

Value, however, is a clear set of delivered outcomes that have tangible benefits, that a customer shouldn’t or can’t live without (i.e. non-negotiable outcomes).  

When they can’t live without something, it is now worth paying for. Your security value is now protecting them from something far worse than a perceived cost…  

What our industry is providing today is extremely valuable, and but we allow it to be become a commodity sold at the lowest price. This doesn’t need to occur, and when it does it’s a clear red flag on the type of customer you are talking to. 

Now that we have level set on the value vs subscription argument, lets discuss how value is your superpower and why you should charge for it.  

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Value Means Different Things to Different Industries  

The common element across the 5 industries we’re looking to target is personal / private data. For other industries, like manufacturing or construction, it might be the IP they have built their business around. Other industries may / will have other needs. 

While the real-world cost of this data or IP if it is exposed can and does vary by industry, this also creates an opportunity for you on price – if you would like to do it.  

Solutions, as opposed to selling a license, does offer you a unique opportunity to base your knowledge and value on how valuable your solution outcome is worth to them, with the benefit that your price can’t be commoditised by them or a competitor. 

What platforms you use to deliver an outcome today, is irrelevant, as most customers don’t understand the technical aspects. What matters is they have a need that you can address, and that need is worth something.   

 

The Key: Value and Price Are Two Very Different Things 

Historically our industry has sold on price, essentially set by vendors. While this was OK for one off purchases, reoccurring subscriptions don’t typically benefit your bottom line.  

Managed Services showed that great customers can and will make decisions based on value. Solution selling is taking this model and simply applying it to subscriptions. 

You can also bring managed service agreements and subscriptions together, as a complete outcome-based offer – delivering a valuable outcome for today’s world, not hobbled by yesterday's traditions. 

Taking this mindset to every part of your business, will completely change it – for the better. 

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LET'S LOOK AT A DEMONSTRATION

Value Allow Solutions To Improve Your Profitability!  

In this section we are going to demonstrate just how much of a difference, charging even a small amount more per month, than the default $RRP price, can and will make a huge difference to your bottom line. 

Base Metrics 

For this security designation, you need to win 10 x Net Customer Adds to attain the Performance metric. Next, we’ll set a target seat number, of who we will want our customer target size to be, based on both Small Medium Business (SMB), Small Medium Enterprise (SME) customers.  

Using this, let’s examine the profit in your pocket based on a 1st full year and 3-year total based on winning 10 Net Customer Adds, based on the Microsoft 365 E5 SKU $RRP and solution pricing at $90 and $100 per seat, per month. 

For A Partner Targeting SMB Customers with 50 seats 

lesson 2.4 table -demo1


For a Partner Targeting SME Customers with 200 seats 

lesson 2.4 table -demo2

As you can see, talking and delivering a valuable outcome has amazing benefits for your business, and this is only 10 customers, with no business growth in the 3-year period.  

Image what would this look like, when you sell this valuable solution to not only new customers, but your existing customer base.  

Yes, it will be business changing!  

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CALCULATING YOUR ROI

We have a fully working ROI based spreadsheet, allowing you to look at this in more depth, as you determine your GTM pricing strategy.

Solution Designation for Security - Licence vs Solution

lesson 2.4 table - ROI

 

The ROI based spreadsheet can factor in the following: 

  • What your solution SKUs will incorporate, including a Microsoft 365 Backup.
  • Create a timeline of when you plan / expect to win your Net Customer Adds
  • See what this means from a license & solution perspective for revenue & profit 
  • See what your rebates will look like when you have attained all three metrics! 

Asset 17  NEXT STEPS

  • Download the ROI based spreadsheet and determine your solution price, either with an industry in mind or as a flat GTM price. 
  • Understand that presenting value, requires a different message. We’ll discuss this in the next lesson. 

Asset 14  LESSON TAKE AWAYS

  • Solutions give your business an opportunity to price for a valuable outcome.
  • Value can have different context, industry to industry, but any value-based outcome is worth far more to a customer than what a subscription does.
  • If the customer defaults back to price, even after all of this, then taking them on or walking away - is in your court, and not theirs. In the end, you will be clear on what to expect if you do take them on. 

Asset 4  LESSON DOWNLOADS


Our spreadsheet helps craft your go-to-market offer by displaying potential revenue and profitability at both subscription and solution levels (including rebates) when achieving 10x Net Customer Adds across the first 12 months of your journey.  

It will also show long-term financial benefits over three years, supporting this outcome. 

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Next Lesson: 

We will examine how your messaging must align with these industry contexts, as this will determine whether a potential customer receives the desired message from you, helping you book meetings!