Computer Troubleshooters

The Company

Persuading clients to replace aging hardware was no easy task for Computer Troubleshooters of Greensboro, NC. So when owner Emily Wilson discovered a painless way to sway clients, she jumped on it.

In June 2010, Wilson attended a presentation about CharTec's Hardware as a Service (HaaS) program, which folds the price of hardware into an all-inclusive IT services contract paid for through a monthly fee. Customers, she says, often resisted hardware replacements because they would have to pay for them in one lump sum, even though Computer Troubleshooters' contracts require hardware refreshes every three years.

"It made for an awkward situation, and it strained the relationship," says Wilson. It was especially frustrating because hardware profit margins typically range from zero to negligible. "The only reason I sold any hardware at all was for the customer loyalty aspect. I figured the client would come back to me for services." When Wilson was introduced to the CharTec approach, she knew it was the way to go. Two months later, Computer Troubleshooters was a CharTec partner.

The Hardware Challenge

Computer Troubleshooters is a four-person $200,000 IT services company focused on small businesses with up to 20 workstations. Founded in 2006, it is the local franchise of a sprawling IT services organization with 466 members in 26 countries.

Computer Troubleshooters has a diverse list of clients including homeowners, a photographer, plumber, oral surgeon, business coaching firm, and a real estate school. IT budgets are limited, so even $1,000 for a laptop isn't pocket change for most clients.

Wilson knew going in she wouldn't get rich off hardware, hence her company's focus on managed services, data backup and recovery, and break/fix work such as PC maintenance. "Margins had come down so much on physical hardware that you can't make a lot of money just selling it," Wilson says.

That is, until CharTec came along. Wilson signed up for the CharTec program and a two-day course at the CharTec Certified Sales Professional Academy. "I jumped on it as quickly as I could because I saw the value of what they were offering," she recalls.

The course covers all sales and business aspects of HaaS, including how to go to market and calculate operating costs to price services accordingly. After the training, Wilson started introducing the HaaS concept to customers as an integral part of her BEST (Business Enhanced Support Technology) managed services offering. She also launched a program for the smallest customers, with one to four PCs, called Trouble-Free PC. Clients can see the HaaS concept in action through demo machines in Wilson's office.

Mutual Benefits

CharTec's program benefits clients and service providers alike. Gone are the client's lump-sum capital outlays, as hardware costs move to the operating expenses column with the associated tax benefits. IT costs are predictable and easier to budget.

For Computer Troubleshooters, aside from hardware profits, benefits include revenue stability and tighter customer relationships. Stickiness with the client improves, as does the potential for long-term relationships. "What's most important to me is I get tied into the customer," Wilson says.

Gone are the quibbles over replacement cycles. Under the CharTec program, equipment is replaced every three years, and service providers can put their own brand on the hardware. By including hardware in managed services programs, CharTec says it fills the "missing piece" in the typical managed services contract.

CharTec also keeps track of software licensing and budgeting, and offers a single point of contact for problem resolution as well as North America-based helpdesk service.

Since partnering with CharTec, Computer Troubleshooters' recurring revenue has increased overall revenue growth to 41%, says Wilson. Also, since working with CharTec, Wilson can continue to expect the growth she has already experienced. She projects revenue of $210,000 for 2011.

"CharTec is the answer to my struggles," says Wilson. "Now I can focus on growing the business without worrying about whether customers are going to resist making improvements because of cost."