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Tim Freestone Turn Your Clients’ TCO into ROI

August 23rd, 2010 - Posted by Tim Freestone

For so many IT solutions, TCO is the easiest selling point: it isn’t hard to show a company how it can save some money. When you focus on the cost argument too much, though, you miss a golden opportunity to sell based on ROI, too. Every TCO play has an ROI component, and getting there requires no mental gymnastics.

It’s all about moving resources around … prudently.

Let’s assume your solution can cut TCO for a particular platform by 50 percent in dollars and two full-time employee equivalents. That’s a savings — great! Now, your client needs to know what to do with the “leftover” resources. Raise the issue of redeploying both the cash and the bodies to initiatives that will advance the company in the marketplace. The cost savings becomes fuel for a growth engine.

And, it becomes a new sales opportunity.

With this approach, you can fill the cost savings void and help your prospect retain the “saved” people and budget. By adding ROI to a TCO-driven pitch, you get two sales calls for the price of one, while your prospect saves and gains simultaneously.

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