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5 Ways to Improve Your MSP Service Level Agreement (SLA)

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5 Ways to Improve Your MSP Service Level Agreements (SLAs)

SLAs are the foundation of your MSP business. They are essential to building strong client relationships and must be clear, reasonable and well-constructed.

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Pricing Models for MSPs

Posted November 6, 2013by Joel Kennedy

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Partners vary greatly in what they charge end clients. End client pricing depends on factors like your location, your clients’ verticals, and what services you will add to the software and services we provide. That said, partners generally follow one of two models.

Option 1: Fixed Price Model

For example, I spoke with a partner in a small market recently who charges clients $600/month per server. Any required onsite work is included at that price, and he will perform as a virtual CIO helping his clients design their networks and systems. The end clients’ monthly costs are fixed and include day to day support. Planned projects are included, too. The partner is able to charge a premium for providing everything at one predictable price.

Option 2: Minimal Monitoring Fee Model

Another model is to charge a minimal monitoring fee ($75/month per server), and use our alerts and tickets to generate time and materials revenue. This can be an easy transition for a traditional break/fix provider. The provider benefits from recurring revenue; and with monitoring software installed, they miss fewer billable events. The client benefits from increased up-time, and most support contracts come with a lower hourly rate.

Establish Service Level Agreements 

In either case, it is important to establish Service Level Agreements so your clients know what is included and, just as importantly, what is not included in your offerings. If you are offering an “all you can eat” model at one cost, consider factors like how or if you will support printers, smartphones, and ancillary devices.

Be Flexible

Many partners offer different service levels to their clients – silver, gold, or platinum. So, you could incorporate a mix of options. When it comes to pricing, the bottom line is that there is no bottom line that’s universal for everyone. There’s only what will work best for you and for your clients. The key is to find a system that plays to the strengths of your offerings and be prepared to stay flexible.


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