Blocking time agreements help IT service providers get compensation for all those tiny pieces of work you would do otherwise, but never @tubblog @SmarterMSP customers are indoctrinated in the mindset of buying time rather than value, and therefore selling an MSP contract is a growing struggle. Richard Tubb works with MSP to help them focus on what`s important, free up their time and earn more money. You don`t have to do it alone anymore! While this is not the preferred type of agreement for each MSP for sale, this can be very useful in scenarios where the customer could be a potential credit risk. If a single suspension agreement is used, the customer must always pay for the service in advance. It looks a bit like manageable services, right, and it is. While some IT companies are content that sell block time and never switch to an a la carte service agreement with their customers, others use block time as a springboard to explain to their customers why a flat-fee deal would be better for them. Remember that the MRR is king in the world of managerial services! We should always strive to sell full manage services agreements on Block Time. MRR agreements are the key to the correct valuation of your company as well as the revenue/work forecast. The key to bulk billing is, unsurprisingly, to save all the time you spend helping your customer. The most effective way to capture this time is to save it in your ticketing, helpesk or PSA (Professional Services Automation) system. NOTE: This article deals only with the type of contract and the use of this form of agreement, as gl assignments and product configurations can vary considerably from one MSP to another depending on accounting requirements. The reference to the prohibition period agreements is definitely in the name. You sell your customer a block of time-z.B 10 hours.
6. Save and close the deal, then click on the Supplements tab. Some IT companies sell block hours each year – perhaps 20 hours of assistance per year before the agreement is renewed – while others sell block times that never ends and can be used if necessary. If you sell a block of time to a customer in advance, you eliminate one of the biggest challenges of break/fixing work – and you will be paid for the work done for the client. With block time, you do billing to the customer in advance, say, 10 hours, and every time you work for the customer, those 10 hours are reduced. Don`t wait for the bills to be paid every time you work for a client. 2. Add a new agreement and choose our single suspension agreement as the type of contract. Give the agreement an easily identifiable name. Select a start date and set the end date to No end date. Whether a request lasts five minutes or five hours, note this time on a ticket and reduce the customer`s time accordingly.
If you`ve ever had a customer phone to give you « quick advice on a new laptop and laptop, » you know it`s both uncomfortable and difficult to charge for this advice. However, with a blocking agreement, you can reduce the customer`s time accordingly. You are now paid for the time you would have spent with free advice! At this point, you may have the twilight conclusion that selling a customer block time is also a coaching of a client on two points: this explains how you create the type of contract, create the initial agreement and renew the agreement if necessary. I strongly recommend that you also create a workflow rule to identify agreements with low balances and inform you via email, activity or service ticket in order to have a conversation with your client about adding extra time.