6 Methods To Consider When Pricing Managed Services

By Joseph Tavano, Continuum Managed IT Services

Let’s face it: pricing is a hot topic for managed IT service providers (MSPs), and with good reason. It’s 2016, and there are still heated debates on the best pricing model to choose. Many MSPs are unsure what is the right model for their business, and without the proper due diligence into the topic, there can remain the nagging fear that some detail has been missed and potentially greater profit margins are slipping away.

Since the channel has shifted away from break/fix in recent years, pricing models have become increasingly more varied and complex. It’s not always about having the lowest price in your regional market; depending on the costs associated with running your MSP practice, your price model can vary dramatically from your competition, and tweaking it to make it right depends on well-researched, proven, formula-driven pricing models, as well as a carefully considered array of services that will set you apart from the other options available on Main Street.

If you’ve never considered your approach to pricing or haven’t given it much thought in a while, this is also a perfect opportunity to do so, as early Q1 is a time to update, refresh, and retarget your business goals.

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