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    Stop Reselling Office 365!

    Posted by Jeff Farris on Aug 31, 2018 7:32:36 AM

    Reselling Office 365 has become a study in declining margins and increasing workload. For MSPs, this often results in reselling Office 365 as a “favor” to clients. But margins aren’t the only issue:

    1. New paid Microsoft support requirements are increasing the costs and complexity of being a direct CSP.
    2. CSPs are required to provide support for, what is in all likelihood, the most complicated consumer-focused cloud offering on the market.
    3. Indirect CSPs must compete against direct CSPs who can offer discounts and still make money.
    4. CSPs bear all the receivables risk of collection.
    5. Office 365 client billing is often challenging and manual oversight or revision is not uncommon

    And last, but certainly not least, Microsoft publishes their retail price and offers the product direct.

     

    Stop Selling Office 365, Sell Office 365 “Platinum”

    For all these negatives, selling 365 is still a winning proposition. Office 365 offers new revenue and project opportunities related to security, conferencing, training and device management to name just a few. But these revenue opportunities require more effort and new products. If you want to make money on just licenses, you need to stop selling Office 365.

    Instead, sell “Office 365 Platinum”. “Platinum” is your own unique product that is a combination of Office 365, support, add-ons and pricing that creates a secure, productive, transformative and unique solution.

     

    Sample Platinum Bundle

    Using add-ons such as Azurative’s CloudRadial and Microsoft’s ATP, your Platinum pitch to clients becomes:

    Feature

    Office 365

    Office 365 Platinum

    Email, Calendar, Tasks

     

     

    Microsoft Office Apps

     

     

    PC, Mac, iOS, Android & Web Versions

     

     

    U.S. Based Support

     

    Phone & Conferencing Setup & Support1

     

    Dedicated Account Manager

     

    Full Service Administration

     

    Advanced Email Threat Protection

     

    Customizable Intranet

     

    Cloud Applications Menu

    Shared 365 Calendars

    Company Directory

    Centralized Messaging

    Knowledge Base & Training

    Security Training Courses & Certifications

    Consolidated Service Portal

    Infrastructure Reporting

    Policy Monitoring

    Compliance Tools

     

     

     

     

     

     

     

     

     

     

     

    1 Requires Microsoft Phone / Cloud PBX

     

    More importantly for your firm, your revenue and profits (assuming 10% margins) change as follows:

     

    Sample Platinum Pricing

     

    Office 365

    Office 365 Platinum

    License

    Price

    Cost

    Profit

    Price

    Cost

    Profit

    Margin

    Business Essentials

    5.00

    4.50

    .50

    10.00

    7.30

    2.70

    27%

    Business Premium

    12.50

    11.25

    1.25

    19.00

    14.05

    4.95

    26%

    E1

    8.00

    7.20

    .80

    14.00

    10.00

    4.00

    28%

    E3

    20.00

    18.00

    2.00

    28.00

    20.80

    7.20

    26%

    E5

    35.00

    31.50

    3.50

    44.00

    32.50

    11.50

    26%

    E5 + Phone

    47.00

    42.30

    4.70

    65.00

    50.50

    14.50

    22%

     

    Selling the Platinum version more than doubles your margins for basically the same effort. More importantly, it helps communicate that there is a better way to deploy Office 365 and your firm has that expertise.

     

    Take Advantage of Other Benefits

    A tool like CloudRadial not only boosts your bottom line and provides numerous benefits to clients, it also helps your firm create a scalable approach to account management through:

    • Self-service sales
    • Business-policy opportunities
    • Improved QBRs
    • Streamlined ticketing
    • Better trained and self-reliant users
    • Greater direct exposure to client end-users

    Taking your knowledge of best industry solutions and packaging them into a single offering that your clients can easily understand is a great away to avoid the Office 365 margin death spiral. Your own Office 365 package helps you stand out among a very competitive landscape and in the process of defending your price, you’ll be educating your clients on the real choices they have with Office 365 deployment.

    Topics: platinum, office-365, indirect-csp, Blog, direct-csp, Sales, business-premium