IT Company Reinvents Itself for Growth, Increases Average Deal Size by 46%

In 2009, rackAID, LLC was facing stagnant sales and increasing competition that was creating price pressure. Overseas firms and freelance IT professionals were charging significantly less, and the company began losing business to them. Early in the year, a handful of clients represented more than 35% of the company’s total revenue. The firm lost almost all of that business by May of that year, and business continued to decline until August. At the same time, there were some clients who continued to give the company excellent reviews and were fine with its pricing.

Founder Jeff Huckaby knew he had to do something—and fast. He began examining his firm’s strengths. He didn’t want to be the cheapest IT firm, providing sketchy service and trying to make a living on volume. Instead, he reinvented his firm to be far more consultative and forward-thinking. He decided he would differentiate his firm by truly partnering with his clients, looking at the long-term needs of these businesses and making recommendations and sales based on a deep understanding of his clients’ needs. So, he began a period of reinvention.

Read the complete case study to learn what he did and how it has paid off.