It’s the question I hear all the time: “How much should I charge for managed services?” The obvious answer (as my dad often tells me): As much as your customers are willing to pay. Still, that’s over simplifying matters. I realize MSPs use a range of metrics and formulas to set pricing. But perhaps it’s time to go back to basics.
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How to Set Managed Services Pricing
Posted January 21st, 2010 by Joe Panettieri
Would You Guarantee Your Managed Services Price — for a Lifetime?
Posted March 10th, 2009 by Joe Panettieri
The recession is triggering some rather wild IT service strategies. Consider the situation at Cincinnati Bell. The service provider has launched a “Price for Life” program that gives customers a permanent monthly rate for several bundled services. Plus, there’s no contract requirement. It sounds to me like an act of desperation by a telcommunications company trying to retain residential customers. But I wonder: Would managed service providers be crazy enough to make similar guarantees?
How to Structure Your Managed Services Offering
Posted March 3rd, 2009 by Paul Barnett
Our VirtualAdministrator partners often ask us how to package and price their managed services offerings. Structuring your offering correctly can be vital to the success of your business. If you charge too much, you risk scaring customers away — charge too little, and you cheat yourself. Too many plan options confuse customers, while too few limits your market. A great method to use is a tiered offering. The Silver, Gold, and Platinum approach as we call it. Here’s how to get started.
Are You Charging Enough for Managed Services?
Posted December 29th, 2008 by Mitch York
Recently, I was updating my contact database and asked my newsletter recipients to answer a question along with giving me their mailing info. The question was, “What is the biggest challenge you faced when making (or thinking about) the transition from being an executive to being an entrepreneur?”
Putting A Price On Eternal IT and MSP Happiness
Posted October 3rd, 2008 by Jim Hamilton
The evil-hearted Mr. Burns of Simpson’s fame once quipped “One dollar for eternal happiness? I’d be happier with the dollar.”
Two Trends In Managed Services Prices
Posted August 6th, 2008 by Joe Panettieri
Are you charging “by device” for your managed services? Perhaps it’s time to move to a “per user” model that also includes quarterly — instead of monthly — fee adjustments. The approach, which Autotask CEO Bob Godgart described to me earlier today, caught my attention. Here’s why.
How Not to Market Your Managed Services
Posted August 4th, 2008 by Joe Panettieri
Managed services are supposed to be a simple elevator pitch: For a flat monthly fee, you’ll pro-actively manage all of your customers’ systems. Sounds simple. But some MSPs, such as ASI System Integration (ASI) in New York, are sending customers confusing messages containing low-ball pricing filled with technical jargon.
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