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Help Your New Client Fire Their Existing IT Company Without It Being Super Stressful.

Great news for you = Bad news for your predecessor.  Why should you care?  Because your new client may be troubled and concerned about canceling the contract with their previous provider. When you get a new contract this means your client has to cancel one with their previous MSP.  They’ve had an ongoing relationship with […]
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fire your MSPGreat news for you = Bad news for your predecessor.  Why should you care?  Because your new client may be troubled and concerned about canceling the contract with their previous provider.

When you get a new contract this means your client has to cancel one with their previous MSP.  They’ve had an ongoing relationship with this person or company, and in some instances they feel remorse when letting them go. Or they may be concerned about the consequences. They may have to pay penalties for canceling the contract.

You can help your client by understanding how they feel, but perhaps you can do more. The following is some advice you can provide:

  1. Your client should check their state laws to determine their eligibility to cancel the contract without paying penalties. The cancellation must be executed according to the terms of the contract. If not, the cancellation may be considered a breach of contract.
  2. Your client should develop a list of reasons why they want to cancel and why they were unsatisfied with predecessor’s service.  They may be able to use these reasons to cancel the contract with the company. If the company failed to perform their responsibilities as defined in the SLA, the contract can be terminated without penalties on the basis of non-performance.
  3. If they believe penalties will be assessed, they should contact the company to find out what their options are for canceling the contract.  They should ask if penalties will be assessed if they cancel immediately and if any fees can be waived. Regardless of what they say, your client can cancel the contract, however they may need to pay penalties.
  4. They should send a letter to cancel the contract to the CEO of the company. The letter should simply state facts in a concise fashion, specifying the date of the termination, how any remaining payments should be handled, and thanking the contractor for their service. The shorter the better. However they may want to discuss why they want to cancel the contract. In some cases, state laws require that they give a valid reason for canceling the contract. The letter should be mailed with a return receipt request so your client has proof that it was received.
  5. After 30 days, your clients should call the company to verify their account  balance, if any.  If there are any unwarranted fees, these should be addressed in writing.

Need an example of a cancellation letter?  Click here to download.

Ulistic specializes in helping MSPs market their services and sell more IT services to clients who appreciate the value of a great IT partner.  Need help?  Call us today at 716.799.1999 x102 to book a no obligation consultation with us.

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