Want To Be Better Of The Best? Understand The Strategies Of MSP Pricing!

Pricing strategies is a hot debated issue among Managed Service Providers (MSP’s). Depending upon the business model of the solution provider , the sales and marketing of the provider, we see several diverse pricing models.

Broadly we can see Per Device or User vs SLA(Service Level Agreement) approach.

Per User/Per Device is easy as compared to SLA based pricing. The per device pricing approach is fairly simple and many managed service providers utilize it mainly for this reason. The logic is to develop a flat fee for each type of device that is upheld in a customer environment.

While an SLA (Service Level Agreement) puts together information on all the services and their agreed­ upon expected deployment as well as reliability into a single document. It clearly conveys metrics, responsibilities and expectations so that in the event of any issue with the service, neither party can plead ignorance. It ensures both sides make the same understanding of requirements.

The other kind of approach is wherein you can classify the pricing strategies as­

  1. Per device / per user­ In this the service provider puts forth a flat fee service where the organization is charged the same amount every month.
  1. A La Carte model­ Depending on the requirement of the client’s organization, you can choose or pick which service to give instead to the pre decided full menu and charge so only to those service packages.
  1. Tiered cake Model­ It the mostly used service among MSP’s. It’s all about gold, silver and bronze levels of services classified by MSP’s you choose with. For instance the ‘Bronze service’ may include basic desktop managed service package with malware protection for an entry level i.e. minimal price. Next is ‘Silver service’ with a level up on price which may include on site visiting along with the basic desktop managed service package. Then with another level up in pricing i.e. the highest priced package will be ‘Gold service’ which may have emergency support to network and resolving of urgent issues.
  1. All you can eat­ this is the most flexible package wherein all the services right from desktop management to emergency support will be provided for specific hours or days or months or could be 24×7 with a flat fee structure but with more charges for any services provided outside those times.