We’re always on the lookout for passionate, committed and dedicated individuals to join our Continuum family. Let’s look at some of pros and cons of the most common MSP pricing models. The software continues to provide guidance as you work with our experts to execute a new pricing strategy. Depending on costs associated with an MSP business, pricing can vary dramatically, and getting it right depends on well-researched, proven, formula-driven pricing models, as well as a carefully considered array of services. We charge $1.25 per endpoint per month (MSPs please apply for MSP discounted rate), but we will reimburse your spending, dollar for dollar, by deducting all of your spending on the following products with 100% Re-imbursement on the following products: 1) Comodo Advanced Endpoint Protection (AEP) 2) Comodo Endpoint Detection and Response (EDR) Pricing is one of the most challenging aspects of running an MSP. Pricing isn’t something you set and forget. Home; Features; Pricing; About; Contact; Login; SIGN UP. Too little and you’re not only underpaying yourself, but you also risk looking inexperienced. Offering discounts and taking a loss is not the answer, however. Keep Your MSP Pricing Strategy Flexible. The initial strategy adopted by managed services providers can make or break their businesses. MSP Pricing to Accelerate Your Cloud Business - #3 Back. Technology—As progress marches on, shifts in technology will undoubtedly impact MSPs and how managed IT services are priced. When you distinguish yourself from your competitors, and there are no direct substitutes, you are in an elevated position to command greater fees based on the value your services bring on the table. Always keep an eye on the competitive landscape, understand its movements and shifts, and know that your pricing strategy must be able to shift to remain attractive to potential clients. Because MSPs are truly selling a solution with value-based pricing, it can be more difficult to sell, and requires confidence. This is a pretty comprehensive article that breaks down a lot of the most common pricing strategies/models: Tiered Pricing. We’ve assembled top-tier talent to keep you ahead of the curve and tackle your most pressing IT delivery challenges. Standardization is key to scalability, and prevents stagnated growth due to hastily adopted pricing that is no longer profitable as the client list gets longer. 1. Standardization will also help shorten sales cycles, as there are streamlined options to choose from on your menu of services. Suites. And the software will drive impact well into the future. By Continuum Product Team on April 20, 2019. Pricing is one of the most challenging aspects of running an MSP. MSP pricing metrics. MSP Pricing Strategies. It’s all about putting choice in the hands of clients with this pricing model, which provides different package tiers that correspond to defined service levels. Collabrance MSP Pricing Collabrance recommends MSPs charge a minimum of $125/user a month for an all-in managed services solution to achieve the profitability and growth you desire. Looking to learn more about pricing models for your Managed IT Business? Jobcase is a social media platform dedicated to empowering the world’s workforce. Monitoring service l… Often an inexpensive option, this pricing model provides a bare minimum approach to managed services. If value is what you deliver as an MSP, why are you still charging your customers a flat fee based on number of devices or users? Today, the IT channel has no unified standard for pricing managed IT services, which presents an opportunity for MSPs to afford a degree of flexibility and creativity in their pricing model to offer services as they see fit with an achievable profit margin. To reach a final per-user price, multiply the average score by the all-in-seat price. Because the MSP sales process is highly consultative, you can spend weeks, months and sometimes even years closing a customer. Typically, this model is more complex, and usually involves a per-user cost when coming to a bottom-line price, but can yield greater margins as well. According to an article last year in Channele2e, the best MSPs are charging around $125 to $150 per user per month. Watch on-demand demos or request a trial now. The main area that suffers for MSPs is their margins, which then leads to stagnation for the MSP business overall. These tiers are structured, based on cost and resources, with a specific price point that provides a profit margin for an MSP while providing necessary services to clients. Missing the mark can bring to naught, all the hard work that an MSP put in launching an offering. MSP focuses on the delivery of outcomes of benefit, while mitigating risk and actively engaging stakeholders. Simple and easy to adopt, this pricing model requires that users play a flat fee for each device supported by an MSP, billed on a regular schedule. Ready to see the platform for what’s next in action? Law Firms; Nonprofits; Education; Government; Health Care; Dental Services ; Automotive; Support; News; Book a meeting; Managed Services. Today’s best MSPs are charging around $125 to $150 per user per month, ChannelE2E estimates. The initial strategy adopted by managed services providers can make or break their businesses. Strongly enforce standardization with the clients and provide a full-service offering so they feel the value in partnering with you for IT service. However, per-device pricing has its drawbacks as well. Setting the wrong pricing strategy can incur many risks for an MSP business. Clients are alerted of issues, but solutions support could require extra fees (or be the responsibility of the client). Explore today’s MSP landscape, receive technical training, hear from industry experts and grow your business with our collection of live and on-demand webinars. This is under the per-user pricing model. MSPs use a variety of pricing strategies today, and yours will ultimately be dictated by your business’ specific needs. This lets you see what’s working, what can be improved, and continue to provide the best value to all your customers. See our most popular and actionable MSP pricing model tutorials, tips, and how-tos. 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