Growing your Data Recovery Business
For data recovery companies who want to take their business to new levels, or PC & IT Shops who want to become professional data recovery companies, making a successful transition to the next level of growth requires three fundamental changes:
- A change in their business model – the types of customers they serve;
- A change in their technical model – the complexity of cases they solve; and
- A change in their pricing model.
The first change: a change in business model
PC & IT shops do occasional data recovery work for home users. The data these customers need retrieved has low value and the customer is only willing to pay a low price – typically $99 – for simple data retrieval services.
Smaller DR shops serve small and home businesses. These customers value their data and they are willing to pay more – typically up to $800 – for more complex data recovery services.
Larger DR shops serve larger organizations whose businesses’ would potentially fail without their data and they are willing to pay significant amounts of money – typically up to $2000 – for precise data recovery services.
So, any company who is serious about taking their data recovery business to the next level, (a) needs to attract a different type of customer, (b) will get fewer “easy” jobs which will have to be addressed downstream by smaller DR and PC & IT shops, and (c) should partner with those smaller shops to service cases they cannot resolve.
The second & third changes: a change in technical and pricing models
To make a successful change in their business model, the data recovery shop needs to upgrade their technical ability to handle more complex cases – whether those cases come from customers or from partners.
Here are 3 ways a data recovery company can change their technical and pricing models. In the data recovery industry, “data = money” and “more data = more money”.
|
1. |
2. |
3. |
| More data from each case (#) |
More successful cases (%) |
More revenue per case ($) |
1. To get more data from each case DR companies typically need to be able to deal with disk-level issues.
2. To have more successful cases DR companies typically need to be able to deal with failed hard drives.
3. To charge more revenue per case DR companies have to deal with more complex cases.
What does this mean for you?
If you are a PC or IT Shop interested in becoming a professional data recovery company or if you are starting a data recovery business, your business strategy should be to acquire tools that will enable you to retrieve more data from common cases, such as partially failed drives and drives with bad sectors.
In our experience, this strategy will increase your average revenue per case from $99 to up to $800.
Read more about our Solution for Smaller Data Recovery Companies.
If you are a Small Data Recovery company interested in becoming a medium-to-large DR company, your business strategy should be to acquire professional data recovery tools and advanced DR knowledge to retrieve more data from complex cases, such as failed drives.
In our experience, this strategy will increase your average revenue per case from $800 to up to $2000.
Read more about our Solution for Larger Data Recovery Companies.
If you are a Larger Data Recovery company interested in growing your business, your business strategy should be to acquire leading edge custom data recovery tools and to leverage your technical expertise to retrieve more data from the most complex cases.
In our experience, this strategy will enable you to consistently charge $2000 per case and custom pricing for highly valuable and highly complex cases.
Read more about our Technology Consulting.
Interested in starting your own data recovery business?
DeepSpar is your ideal partner for data recovery business advice and DR systems.
| Read more about our DeepSpar DR Solutions. |
| Read more about our DeepSpar 3D Data Recovery Process. |
