If you’re an MSP, you’ve probably faced this scenario more times than you’d care to admit: You present your proposal, and suddenly, your prospect looks like they’ve seen a ghost. Welcome to the world of sticker shock—a place where your well-meaning sales pitch is met with wide eyes and gasps, as if you just told them you’re charging in gold bricks.
But fear not! We’ve compiled the top 5 pricing objections you’re likely to hear and how to handle them with grace, confidence, and a touch of humor.
“We weren’t expecting it to be this expensive.”
This is the classic response when a prospect is taken aback by your pricing. They may have been living in the land of break-fix, where they only paid when something broke, not realizing that proactive management has a different price tag (and value).
How to Handle It: Start by setting expectations early. Explain the value of proactive, managed IT services compared to the reactive, break-fix model. Use a relatable analogy: “Think of us like a gym membership for your IT. Sure, you could pay per class, but a membership keeps everything in shape all the time.” Educating them on the benefits of avoiding issues before they arise can help shift their perspective.
When to Walk Away: If they’re still balking at the price after you’ve explained the value, it may be time to cut your losses. A prospect who’s not willing to invest in proactive management is likely not ready for the level of service you provide. Politely suggest they might be better suited to a pay-as-you-go model until they see the value in a more comprehensive solution. Sometimes, it’s best to leave them to their “break-fix” ways—until they break… again.
“I can get the same services cheaper elsewhere.”
This objection often comes up when a prospect has done some shopping around. They might think they can get the same level of service for less money, not realizing the difference in quality, experience, or scope.
How to Handle It: Gently but confidently point out the old adage, “You get what you pay for.” Highlight what sets you apart—whether it’s faster response times, a more comprehensive security stack, or just the peace of mind of knowing they won’t have to deal with IT emergencies. “Sure, you could buy a parachute from the bargain bin, but is that really where you want to save money?”
When to Walk Away: If they’re fixated on the bottom line and refuse to see the bigger picture, it might be time to walk. A prospect who’s only looking for the cheapest option likely won’t appreciate or utilize the full range of services you offer. Thank them for their time and let them know that when they’re ready to prioritize quality, you’ll be here. Sometimes, the cheapest parachute isn’t the one you want when you’re jumping out of a plane.
“We’re a small business; we can’t afford this.”
Small businesses often have tight budgets and may not see the immediate value of a managed IT service. They’re used to patching things up on their own or calling in a local tech wizard when something breaks.
How to Handle It: Break down the costs and show them the potential savings over time. Use real-life examples: “Think of it this way—how much would it cost your business if your network went down for a day? Now imagine we could prevent that from happening altogether.” Sometimes, the long-term savings and risk mitigation are enough to convince them of the value.
When to Walk Away: If after all your explanations they still view IT as a cost rather than an investment, it might be time to politely bow out. Small businesses that aren’t ready to invest in their IT infrastructure will continue to see it as an unnecessary expense, not a critical business function. Politely suggest they revisit their IT strategy in a year or so. You don’t want to be the one explaining the importance of fire insurance when their house is already on fire.
“We’ve never paid this much for IT services before.”
Translation: “We’ve been doing the bare minimum for as long as we can remember, and now you’re telling us we need more?” This is common when prospects are used to a break-fix model or an internal jack-of-all-trades handling IT.
How to Handle It: This is where a little education goes a long way. Compare IT management to regular maintenance on a car: “You wouldn’t wait for your car engine to explode before you change the oil, right? It’s the same with IT.” Demonstrating the cost of inaction can sometimes turn the tide.
When to Walk Away: If the prospect is still stuck in the “We’ve always done it this way” mindset, it’s a sign they might not be ready for the change your services require. Thank them for considering your proposal and suggest that they might want to compare apples to apples when looking at IT services. You can’t make someone see the light if they’re content in the dark.
“Can you do it for less?”
Some prospects just love to haggle. While it’s natural to want the best deal, constantly pushing for a discount can signal that they don’t fully value what you offer.
How to Handle It: Be firm but fair. “Our pricing reflects the value of the services we provide,” you can explain. If they push for a discount, suggest a reduction in the scope of services instead. “We could certainly lower the cost if we remove our 24/7 monitoring and only offer 9-to-5 support, but that’s not what we typically recommend for businesses looking to grow and protect their assets.”
When to Walk Away: If they’re still trying to nickel and dime you after all your efforts, it might be time to move on. A prospect who doesn’t respect the value of your services is likely to be a difficult client down the road. Politely suggest that your services might not be the best fit for their current needs and that you’re happy to revisit in the future. It’s better to have a respectful parting now than a painful breakup later.
