Article | March 14, 2018

MSPs: Stop Making This Common Pricing Mistake

Source: Collabrance LLC

A conversation with Jim Hocking, Director of Sales, Collabrance LLC

Jim Hocking, Director of Sales, Collabrance LLC

Jim Hocking sat down with MSPinsights to talk about MSP pricing and the most common mistake he sees MSPs make when it comes to pricing their services.

MSPinsights:  What’s the most common mistake you see new managed service providers making as it relates to developing an appropriate pricing model?

Hocking:  The most common mistake we see new managed service providers make as it relates to developing an appropriate pricing model is not charging enough for their services. We find that many partners who come to us for help have a good solution in place, but are simply not charging a high enough price per user, and therefore are struggling to become profitable and achieve aggressive goals. Collabrance recommends our partners charge a minimum of $125/user for an all-in managed services solution.

MSPinsights:  What are the pros, cons, and key price point determination factors managed service providers should consider related to each of the following: