STEP 2 - Include a Monthly Maintenance Agreement on Every Sale
After speaking with hundreds of systems integrators, I am shocked at the low success rate of those selling maintenance agreements. Every time I go through the check-out at Best Buy, they try to sell me an extended warranty. So why isn’t your sales team selling maintenance agreements? Or at least adding maintenance agreements to every proposal, every time? What is your success rate of selling an annual maintenance agreement on a cash sale? 10%? 20%? What about multi-year maintenance agreements? I’m guessing even lower.
It’s much easier to sell multi-year maintenance agreements when you sell a monthly payment instead. It simply becomes part of the monthly payment as a single invoice. Imagine if you could sell a 3 year maintenance agreement on 20% of your projects. How would that affect the profitability of your business? Now imagine selling multi-year maintenance agreements with other managed recurring revenue on 40-50% of your projects when selling Audio Visual as a Service or AVaaS. This is the success rate in many other technology verticals like IT and Telephony, and could be yours too.
See a webcast recording below on how to answer the most common objections partners receive when offering monthly payments.