Home – New Forums Money matters Who’s still following a break-fix business model?

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  • #988638
    TechSeek
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    Hey,

    Just wanting to know who’s still following a break-fix business model and what industry you’re in.

    Would like to know what you’ve done to help with cash flow when business has been quiet or what changes you’ve made to try and move away from/manage this business model.

    We offer IT support to both businesses and residential clients so we are still following a break-fix business model. We have however started to offer value packs that are direct debited from the customer per month which entitle them to a set number of visits per month. We have also started providing Hosted Exchange (a service we also direct debit) which has also contributed to our cash flow and helped cover some overheads.

    #1168222
    TehCamel
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    I’m still on breakfix for a several clients.

    I don’t do residential, but I think they would be more difficult than businesses to get on (revenue-effective) monthly retainers.

    The best way to convert them I’ved found so far, is to take 12 months worth of their support costs (ie, exclude hardware, software and other resold things) and average it over 12 months.

    IE, if I’ might have a client with a total yearly spend of 15,000, a highest monthly spend of $1600 and lowest of $400, On average though, they are paying $550 a month. (note, these figures made up.)

    I see from your website that you do audits for clients between 3-10 seats. On a given client of say 10 seats, you might say “look, you spend on average, $550 per month with me. I can offer you an unlimited remote-support contract for $440 a month, based on your ten users.”

    thne, upsell a weekly 2 hr onsite visit.
    then add on hosted antivirus (look at AVG Cloudcare for this)
    then add on hosted exchange

    the key poiint is – the customer needs to feel they are getting value, so you can’t just get them on a contract then disappear. I give them reports and ring up and go over the reports if they want, explain what their money has done this month.

    but.. you have to know what it costs you to provide the service. If your customer regularly uses 40 hours a week of your time, it’s illogical to sell an AYCE package for 200 a month, because you’ll have no time for other clients.

    Also, automate, automate, automate. as many things as you can, to reduce your time performing common functions.

    For instance – I’ve got a powershell script for Office365. If a customer needs a new email account, I kick off the script, give it the correct identifiers for the customer, let it do it’s thing. Takes about 2 minutes all told. Far quicker than having to logon to the portal, go and click through all the fields etcl..

    #1168223
    TechSeek
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    Thanks for the feedback Andy. It’s great to get an insight on how other businesses are dealing with this.

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