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- First, you should work out all the costs that you incur through personnel wages, the storage rates that you pay cloud vendors, as well as your software and hardware spending. Combined, the total sum represents your overall business expenditure, which you should then add to your projected profit margin<\/a> to establish the final price of your IT services.<\/li>\n
- Secondly, try to clearly define the type of IT services you\u2019re offering. This is where you separate \u201cextra\u201d services from your \u201cmanaged\u201d services, before proceeding to set up appropriately priced packages for each. Managed services can follow the subscription-based MSP pricing model, while the extras should have their own add-on rates.<\/li>\n<\/ul>\n
Further reading<\/span> How to Define the Bundle and Not Overengineer Things<\/a><\/p>\n
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- Finally, consider setting up usage limits for each of your service packages. This will help you regulate the scale of resources different types of clients get to utilize, based on their pricing level. You could, for instance, choose to limit the backups on one of the packages to 1,000 GB of data - but upgradable to 2,000 GB at an extra fee.<\/li>\n<\/ul>\n
Further reading<\/span> Guide to MSP Pricing<\/a><\/p>\n
What Is Average MSP Pricing?<\/h2>\n
As we\u2019ve established already, the MSP industry is extensively diverse, which makes it difficult to accurately determine average MSP pricing rates. Overall, though, after tracking various market trends across the globe, we can confirm that MSP pricing largely depends on - among other factors - your geographical areas, and the range of services offered.<\/p>\n
Small MSP businesses, for example, tend to charge about $40 to $100 per month per device for small-scale packages, with additional fees for extra services and onsite support. Medium-sized MSP businesses, on the other hand, target more-demanding customers with a wider range of services that cost about $100 to $300 per month per device.<\/p>\n
According to the 2020 MSP Benchmark Survey by Kaseya<\/a>, the bulk of MSPs (30%) quote $1,001\u2013$2,500 as the average size of their monthly managed service contracts. Then 20% are making between $2,501 and $5,000 per contract, while 22% have been securing service contracts worth less than $1,000.<\/p>\n
Further reading<\/span> How Should You Determine Prices?<\/a><\/p>\n
\n\nFREE WHITEPAPER<\/div>\nMSP Pricing Strategy Guide<\/div>\nLearn how you can build the right offering for your clients, bundle your products together and determine a proper pricing strategy.<\/div>\n![\"CTA\"](\"https:\/\/no-cache.hubspot.com\/cta\/default\/5442029\/12096ef4-2117-4724-bd7f-72c6d8fecef4.png\")
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<\/div>\n<\/div>\nWhat Is Tiered MSP Pricing?<\/h2>\n
Tiered MSP pricing is a multi-level schedule that offers differently provisioned packages at varying rates. Customers basically get to choose (based on their needs) the package with the best balance of pricing and services from a range of options.<\/p>\n
\u00a0<\/a>![\"CTA\"](\"https:\/\/no-cache.hubspot.com\/cta\/default\/5442029\/618140c0-1a16-4fce-a8cd-da4b58abb25d.png\")
<\/a><\/span><\/span><\/div>\nYou could, for instance, introduce a tiered MSP pricing schedule with three package levels: basic, middle-level, and advanced.<\/p>\n
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- The basic plan would, of course, offer the narrowest range of services at the cheapest cumulative price. We\u2019re talking about the minimum essentials, such as patch management, network monitoring, antivirus, and backup services with limited storage. What\u2019s more, you could provide phone and email support during business hours.<\/li>\n
- The middle-level plan, on other hand, would take it up a notch, with additions like onsite support - all for a slightly higher price than the basic plan.<\/li>\n
- The advanced plan would be the best-provisioned option, targeting large-scale users such as growing enterprises. They\u2019d gladly pay a pretty penny to supplement all the middle-level services with special extras like off-hours, on-demand customer support and vCIO<\/a>.<\/li>\n<\/ul>\n
- Secondly, try to clearly define the type of IT services you\u2019re offering. This is where you separate \u201cextra\u201d services from your \u201cmanaged\u201d services, before proceeding to set up appropriately priced packages for each. Managed services can follow the subscription-based MSP pricing model, while the extras should have their own add-on rates.<\/li>\n<\/ul>\n
What Is MSP Pricing?<\/h2>\n
While there are different approaches IT service providers could use to charge their customers, MSP pricing essentially refers to a subscription-based model, in which a client is expected to pay a fixed fee on a recurring basis. The charge itself caters for several services bundled together, and most MSPs typically choose to levy it either monthly or yearly.<\/p>\n
Nevertheless, don\u2019t feel obligated to strictly abide by that. Although MSPs are fond of imposing subscription-based pricing, feel free to customize everything based on your sales objectives and target customers.<\/p>\n
You could, for instance, introduce an all-you-can-eat option with multiple sublevels that charge per user or per device. It\u2019s also possible to mix up regular subscription services with break-fix add-ons, which would charge clients by the hour for repair and maintenance services.<\/p>\n
Further reading<\/span> MSP Pricing Models<\/a><\/p>\n There are three fundamental steps you should follow to come up with the best prices for your MSP services.<\/p>\nHow to Price MSP Services<\/h2>\n
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![\"Whitepaper](\"https:\/\/www.msp360.com\/resources\/wp-content\/uploads\/2020\/05\/Managed-Backup-pricing-1.png\")
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