I have been in the IT Service Industry for 25 years and I am still surprised on how many articles I have read regarding Independent Service Organizations / TPM’s that continue to only emphasize saving clients 30-60% on hardware service contracts for IBM, Dell, EMC, Cisco, HP, etc.

This type of selling and marketing was pretty effective 10 years ago due to the extreme costs the manufactures were charging for service. Typical scenarios from a service company would be to obtain a clients current service contract or they may have the actual pricing on what the manufacturing charges for service and simply knock off 50%. "Here you go Mr. Jones; I just saved you a ton of money!"  Over the years many service organizations prospered with this type of methodology. But as time went on a fair amount of these companies either went out of business, or had to merge with other service companies in order to survive.

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