When buying something that you need, no matter how good the offer is, it always comes down to the price. Consider yourself buying a house: You’re going through different houses, choosing which one is the best, and when you found the dream home that you’ve been wanting, it was out of your budget. Either you choose another home that is affordable or you loan money to get the one that you want. With MSPs, it’s a whole different world. Just the right quality of service that fits right into your budget. Flexibility in pricing is one of the great things about MSPs and this is what attracts customers the most.
MSPs have developed flexible solutions and services throughout the years. The complexity and variety of the vendors’ pricing models increased as the managed services market progressed.
Here are the most common pricing models preferred by MSPs around the globe:
1.Per-device Pricing
The simplest pricing plan of them all, this one involves MSPs charging their clients a fixed amount on a regular basis for each kind of covered device.
For instance, an MSP may set aside a cost of, let’s say, $A per laptop, $B per printer, and $C per server under the fundamental per-device pricing model.
Additionally, this model gives customers the option of increasing the monthly charge as they add more devices.
On the other hand, increasing pricing becomes challenging if the customer doesn’t add new devices because customers would notice the price rise immediately.
2.Per-user Pricing
The only distinction between this and the per-device pricing model is that the flat charge is billed per user, per month. No matter how many devices a person uses, this model takes care of all of their IT demands.
Because this price approach doesn’t account for the number of devices the MSP must manage, many clients prefer it even if they wind up paying more as their user count rises. The companies with a large number of devices gain the most from this kind of pricing structure.
3.Monitoring-only Pricing
As the name implies, in this model, MSPs only provide monitoring and alerting services for a subset of their client’s IT infrastructure. Customers on a restricted budget love this model since it offers a bare-minimum approach and is fairly affordable.
With this kind of pricing structure, the MSP keeps its clients informed of any issues that are later forwarded to and fixed by the client’s internal IT staff. The MSP will offer assistance if required for an additional cost.
Consider an MSP that charges a monthly fee for upgrading (antivirus, other software), patch management, and network/server monitoring. In this instance, it also gives the MSP a chance to charge for remediation actions discovered through remote monitoring.
The service levels for monitoring can be as basic as giving basic monitoring and alerts to internal IT personnel, or the MSP can provide a far more comprehensive service, such as advanced help and issue resolution. All business sizes, from small and medium-sized ones to large ones, are offered this model.
4.Value-based Pricing
This price structure is of the flat fee variety. Given that an MSP offers IT services for every aspect of the client’s business, it is one of the most complete models. This model aims to address latent requirements as well as prospective threats in addition to dealing with acute problems.
In essence, the MSP serves as the client’s outsourced IT department. This approach will be chosen by organizations that desire to devote all of their resources on strategic objectives.
5.All-you-can-eat Pricing
One of the most adaptable and complete price structures, it offers lab or bench time, on-site support, remote assistance, and on-site support for a set monthly fee. In this approach, MSPs might offer services for a set amount of time each day and bill customers extra for anything they receive after that window of time. In some situations, MSPs might additionally offer help around-the-clock.
Customers choose this model primarily because it gives them the ability to forecast expenditures over time and prevent any billing swings.
6.À la carte Pricing
With this approach, customers can pick and choose the services they want to construct a custom plan, similar to an open buffet of services. It is one of the least profitable models for MSPs, as opposed to the tiered or all-you-can-eat models, and it requires MSPs to spend a lot of time outlining all the services they provide. Due to these factors, the majority of MSPs no longer give their clients this choice.
7.Tiered Pricing
The tiered model is one of the most popular price structures among MSPs. With this model, MSPs have the freedom to create service packages with tier-by-tier price increases as more complete services are made available. Businesses can select the service package that best suits their demands and financial constraints.
The most common service package designations are “Bronze,” “Silver,” “Gold,” and “Platinum,” where “Bronze” denotes the least expensive package and offers the most basic level of services and support, while “Silver” and “Gold” denote more expensive packages.
For instance, basic remote support, patching, and upgrading might be included in Bronze. The services provided in Bronze may also be included in Silver support, along with on-site support, and the Gold package may also include emergency after-hours support in addition to the services provided in the earlier packages.
Things to consider when choosing the right price for you:
1. Different Costs
You must be aware of the overall costs (or break-even cost) involved in providing a service. You need to be aware of all of your normal costs as well as any potential unforeseen additional charges if you want to create a pricing strategy that works.
2. Technology Used
It makes sense that changes in technology will have an impact on both your price and the services you provide. Having a thorough understanding of the current technological landscape, including its costs, advantages, and difficulties, is essential for developing a pricing strategy.
3. Scalability
Standardization is crucial for maintaining the efficacy of your pricing strategy as your organization expands. Pricing changes over time are inevitable, but the secret to scalability is to standardize the costs associated with your core services.
Additionally, standardization shortens sales cycles, and since the price model you adopt makes selling simpler and repeatable, your business may be scaled as needed.
4. Targeted Market Segment
The price method you choose will be significantly influenced by your target market. Depending on the kind of business and verticals that are addressed, the scope and depth of the services given vary. For instance, a major corporation requires a different depth of services than an SMB, so the pricing model that works for an SMB will not work for them.
5. Your Competition
Putting all other considerations aside, you need to make sure that your prices and services are competitive with those of your competitors. To stay ahead of the competition and lower your chances of being replaced, try to increase the value of your service bundles.
MSPs have come a long way in providing services to businesses of all industries. Price models are created not just for MSPs to get customers that want their offers because of the price that are affordable, but to help businesses like yours get services that fit your needs and your company’s budget. Here at Intelecis, we pride ourselves in giving the best quality of services for your IT and cybersecurity needs with the pricing model that your business can afford and services that fit your needs. Ready to step into the future , save money and be better than your competitors? Talk to us today!
