Common Pricing Mistakes VoIP Resellers Can Avoid

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The VoIP industry is projected to grow substantially in the coming years — particularly becuase it has proven to be a crucial and effective means of communication for many businesses recently  Due to this growth, more and more MSPs and resellers are racing to provide their customers with the ultimate VoIP platform.

Current research reported by Finances Online shows that the market size of VoIP services was valued at $30 billion in 2020, but is projected to triple in size to $95 billion by 2027. The report also notes that 31% of businesses are leveraging VoIP solutions, benefitting from average savings between 50% and 75%. 

So, what can you do to get in on the action? First, you need to find the right UCaaS platform for you and your customers (if you haven’t already). Then, you should educate yourself on the common pricing mistakes VoIP resellers are making—so you can avoid them in your selling.

Not Understanding Your Customer’s Needs 

There’s a marketing saying, “when you sell to everyone, you sell to no one.” The concept behind this expression is that not every customer will be interested in everything you sell. This is a fundamental concept to remember when selling VoIP or any other product. 

Instead of selling every feature you have just because you have it to offer, consider what your customer’s business could genuinely benefit from after listening to their challenges and objectives. If it happens that all your features can make a substantial difference in their business communications, great!

But, only offer all features if you have customer-specific evidence and examples to support why every feature in your offering can help them meet their business goals. Otherwise, know your audience and cater to their specific needs. 

Promoting Cost Versus Value

By now, many businesses know the cost-savings of VoIP, so you may not need to focus too much on the savings customers will get with it. Mention it, but spend more time promoting the value of VoIP and its many features.

Finances Online’s research found that as of 2021, at least 61% of businesses will be replacing traditional phone systems with a VoIP solution. The cloud offers numerous benefits to businesses since it can be accessed worldwide from a variety of different devices — making communication much more accessible and scalable.

Customers committed to scaling their business can rely on personalized features that can be modified as their business needs grow and evolve over time. Likewise, clients with employees traveling around the world can rely on quality communication no matter where they are.

RELATED: What is UCaaS and How It Can Help Your Business

Not Clearly Communicating How Your Client Will Benefit from Your Solution Over the Competition

You can talk about value, but if you don’t personalize your conversation to exactly how they will benefit from your solutions, they likely won’t purchase. There’s a good chance you aren’t the only provider they are considering. Price is almost always top of mind for businesses, so you must convince them your pricing is in line with the benefits they’ll experience—all while differentiating yourself from the competition.

According to research, a majority (76%) of B2B buyers now expect you to add more personalized attention based on their specific business needs and goals. So, not only will you stand out from competitors, but you’ll be meeting their expectations right off the bat (which is always a good first impression). 

Be prepared for a customer to ask, “Yes, but Company X only charges Y for that.” Without disparaging the competition, you should be able to explain your pricing and back up what you’re offering with relevant and specific data, services or features that you include in that pricing that the competition may not, and examples of benefits other customers have experienced. This information will help your clients not only see what your solutions have done for others but what they can do for them. 

This means you have to establish your pricing model thoughtfully and be able to justify it with your customers in terms they can understand and relate to in their particular situation. You should also obtain customer testimonials and data to have on hand as proof of the benefits they may expect. The goal is for them to quickly see the price you are charging is worth it.

Making Pricing Decisions Solely Based on Your Competitors 

In many industries, it can be beneficial to base your pricing on what the competitors are doing. However, as a White Label VoIP reseller, you will benefit significantly more by basing your pricing on your own business goals and needs and the value you bring your customers. 

As Vivian Guo once pointed out, “Simply copying your market’s prices leads to a lot of wrong prices and lost profits, even if you do think you’re doing well.” Knowing where you stand compared to the competition is important—but that doesn’t mean copying their pricing structure in hopes their customers will come to you instead.

Differentiation will be more helpful for attaining customers. Focusing on what you can offer your customers and the value your services will bring to their business will bring the greatest benefit.

Overcomplicating Pricing 

Most business decision makers want to get to the bottom line on pricing quickly and avoid multiple add-ons and line items. Create a simple pricing model that is transparent to avoid any confusion or frustration down the line. 

An example of where this comes into play is with all of the devices people use. In most businesses, employees now use multiple devices to get work done efficiently. They may use a desk phone for some calls and their computer’s softphone for others while in the office and a mobile phone when on the go. Make it simple for customers to pay for your services on multiple devices instead of charging per person per device.

RELATED: How to Find the Best UCaaS Phone System Provider

Bonus Tip: Work With The Right UCaaS Provider

Working with the right UCaaS provider could change everything. You need a provider that you can rely on 24/7 and trust to take your business to the next level with best in the industry offerings.

Your product will practically sell itself with the right UCaaS and VoIP provider. Every customer will be different, so you want to ensure you’re communicating the value as it pertains to each customer. This is why having a great provider to back you is important. It’s a win-win relationship for you if you’re a VoIP reseller looking to:

  • Expand your business
  • Offer a modern cloud-based voice solution
  • Do more in less time
  • Scale with a partner that will grow with you

If this is you, SkySwitch can help. SkySwitch offers everything you need to make reselling under your own brand easy.

Schedule a demo with SkySwitch to learn more about the streamlined process that will get you and your customers everything you need in one place. SkySwitch can meet all of your customer’s communication needs while building your brand, increasing your revenue, and establishing your business as a leader in the VoIP industry.