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Tuesday, February 27, 2007

Computer Service Contracts Can Raise Your Profit Margins

Computer service contracts are an excellent way for you to develop your business. Computer service contracts can give you more time to work on technical training, marketing, sales and other aspects of the business.

Acquiring new clients takes a lot of time and money. If you are constantly doing little jobs for new clients, you are probably maxed out on resources. Focusing on computer service contracts reduce the cost of getting new clients and help give you more time to get the sweet spot clients you need to further your business.

The Computer Service Contract Model

When you implement computer service contracts, you increase your overall profit margins because client acquisition costs turn into a smaller revenue percentage.

If it costs you $500 to get a new client, for example, would you want to get a client that pays you $1,000 per year or one that pays you $10,000 per year?

Computer Service Contract Model and Your Goals

1. If it costs $500 to get a client that pays $1,000 per year, half your margins will be already gone. You will only be realizing a 50 percent profit.

2. If you have a client paying you $10,000 that only cost $500 to acquire, you are getting a 95 percent profit, which can help your business exponentially.

Computer service contracts give you better profit margins and allow you time and money to go towards your marketing, networking and administrative costs. Use your money for network marketing, seminars, speaking engagements and targeted direct mail that give the best rates of return.

Computer Service Contracts: Build Your Business

If you base your business on computer service contracts, you will get stable clients and a predictable income. Spend time and money on marketing and networking activities that will give you high quality sweet spot clients.

Added By: Joshua Feinberg