How Tech’s Should View The Cost For IT Sales Leads!

young photographer trying to compose a frame, isolatedRecently I have a fascinating conversation with a computer business owner that was outside of the United States.  The reason I felt this was such an interesting conversation is because this computer consultant had received our pricing information before we had a conference call.  Normally, prospects that feel our pricing is too high simply either never call us back or just don’t come on the conference call that we have set up with them.  However, this owner did come on her conference call even though she felt our marketing prices was too high.  This tech was willing to listen to see if we could explain why our price was higher than expected.  As a result I gleaned some important information about how IT guys view how much they should pay for IT sales leads and how to help them change that view!

You Must Calculate the Total Cost of Ownership!

After I finished delivering my presentation on our IT lead generation services my prospect began to grill me about our prices.  I was informed that our cost where simply too high and that they could get technology sales leads cheaper by hiring an in-house telemarketer.  I had heard this line of reasoning before so I asked how they had calculated their cost and decided that this could be done cheaper in-house?  I was informed that they could hire someone internally for around $45,000.00 per year and that if this figure was divided by 12 that it would cost them around $3,700.00.

Of course that figure was cheaper than what we would be able to successfully complete their outbound campaign for.  The first question that came to mind was who was the one that hired, trained and managed this employee?  I was told that the owner was the one that would do the training and managed their past inside sales staff.  Then I asked if they had calculated the time it took the owner to do this and added that into the figures they had used to determine that our services where too costly.  The answer that I heard was that this time was not calculated.

Next I asked if who was the salesman that would be making the presentation on these IT leads?  Once again I was told that this was going to be the owner.  Now I asked if they had calculated the hidden cost for the time that the owner spent training and managing their telemarketer that couldn’t be used to sell their managed services offering.  Again I was told that this had not been taken into consideration.

Finally, I asked if they used these same points of logic to sell their own services, specifically if they would ask if their prospects had calculated their hidden cost along with the opportunity cost of doing their own IT support?  I was told that these in fact where argument that they used!  In conclusion, I suggested that they get serious about hidden cost and opportunity cost themselves and that they could then be in  a better role model for recommending their customers take the same viewpoint to cost!


John Black is the Marketing Director at MSP Telemarketing and has over 10 years experience marketing for IT providers and var marketing to help them get more IT leads that turn into IT sales.