Ching ching! How much markup are you making on antivirus software sales? 400%?

Written by Tullibo

Topics: Kaseya

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How much markup are you making on your antivirus software sales?

With Kaseya Endpoint Security you can turn your one off antivirus software sale into a managed antivirus solution and make as much as 400% markup AND save yourself the headache of managing a whole bunch of different antivirus management consoles, here’s the numbers…

So one of my clients had a revelation yesterday. They worked out that if they sell KES as their default antivirus product instead of the current mix of point solutions they have to manage: the old Symantec Antivirus Corporate Edition, Symantec Endpoint Protection, Sophos & Trend Micro, then they won’t have to manage ~60 odd antivirus server consoles.

They calculated that they’d spend somewhere in the order of 10-20 hours per year per client managing antivirus software policies, updates and bug fixes – that doesn’t include solving any major issues that arise with a console. They have roughly 1700 endpoints to manage, split over approximately 60 clients, so lets break that down:

Lets say conservatively, 5 hours per year per client to manage an antivirus server:

10 hours X $135/hr of consultant time = $1350

So that’s $1350 per year per client they’re simply giving away in managing AV consoles because the work is included under their MSP agreements.

Spread that over 60 clients:

60 clients X $1350 per client per year = $81,000

So, $81,000 per year in consulting gone!

Cut antivirus management time in half with KES

The revelation was that by using KES, they could probably cut the time required to manage AV in half, so 5-10 hours per year per client. So effectively by using KES, they’d save $40,500 per year in lost consulting time.

You can imagine how excited by the idea of rolling it out – a while back Kaseya was giving away 25 KES agents for free as part of some promo offer. They’d taken up the offer and had been playing with KES for several months and finally decided to take the plunge.

400%+ markup on a sale – unheard of in the IT world

They were working off the old KES price sheet from Kaseya and didn’t realise the cost structure had changed to a yearly fee model. The plan was to pimp the managed antivirus service at around $5 per month which would make the service sell at around 100% markup – that’s a massive win by any measure. Can you honestly say you’ve ever made 100% markup on any software sale?

The thing is, the new KES cost structure has brought the pricing down significantly, so much that their $5/month now turns out to be something stupid like 411% markup! Absolutely nuts!

411% on any IT related sale is MASSIVE!

The moral of the story – turn a one-off product sale into a SAAS based sale and you win bigtime!