5 steps to becoming a Managed Service Provider
Pricing Managed Services
As an IT service provider trying to price your Managed Services, have you been asking yourself:
- Am I too expensive or worse too cheap?
- How I calculate hourly rates and flat rates?
- How do I create a win-win situation for my customers and my company?
5 steps to becoming an MSP: Pricing Managed Services
Pricing Managed Services does not come easy. Follow this five step guide to set up a successful strategy!
1. Be critical
Before you start your calculations, think about your company’s most important metrics, and examine your costs. Critically review each cost item again and again to discover potential savings. But don’t lie to yourself – if it takes seven hours to install a server, it will take seven hours, even if you’d prefer it to take five hours!
2. Determine hourly rate, costs and profits
Keep a close eye on the workload of your staff and make sure that everyone is consistently recording their hours. This way, you can calculate the real cost per hour worked, calculate utilisation rates correctly and then add your margin on top.
3. Managed Services vs. Break/Fix
4. Add value to your offer
You´re almost done! But before starting to offer your MSP services, you should consider expanding your package with other offerings that can add value to the customer. Always ask yourself what your customers need, and how they can benefit from your services. Do they need additional endpoint protection against cyber attacks over and above what a traditional antivirus solution can deliver? Could you expand into networking and offer managed firewall as part of your portfolio?
Add these extras to the calculation and your pricing will be complete.
5. Numbers don’t lie!
Take the time to calculate your services properly, set up a spreadsheet and keep it up-to-date by regularly comparing calculations with what’s going on in reality. Numbers don’t lie!
Where does SYNAXON Services come in?
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