Competitor Analysis – IT Management

Introduction
A competitor price analysis was conducted for an IT Management service and was carried out on two
different scenarios resulting in two types of charges:
1) home clients and small businesses who had 1-3 computers and were looking for the Break Fix service,
2) business clients with a minimum of 10 computers, who have no server, but work online, and who are
looking for an IT solution, i.e., managed services.
Challenge:
There was no knowledge of whether they were in the ballpark with their competitors on pricing or not.
Solution:
3 home clients and small businesses who had 1-3 computers looking for a break fix service and
3 business clients with minimum of 10 computers looking for an IT solution, i.e., a managed service,
was assessed and analyzed.
Benefit:
Home clients –
Their charges were
● 14% more than 2 of the other businesses and
● 46% more than the lowest charge of the 3rd business.
Business clients –
Their charges were:
53% less than the highest charge,
35% less than the 2nd highest charge and
10% less than the 3rd charge.
Result:
This insight allowed them to increase charges by 30% on their managed services which equated to an
extra $60,000 per annum.

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