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Which of These 3 MSP Pricing Strategies is Right for You? | Continuum

Have you expanded your products and services offering and are now wondering which pricing strategies to employ? Let’s say, for instance, that you’ve added backup and disaster recovery (BDR) to your line card. Adding BDR is an easy and quick way to start out, and it’s also one of the most widely adopted and required services offered by today’s MSPs. Aside from the actual add-on, you have to know how to price your newly enhanced technology stack so that it generates high margins on an ongoing basis. Consider these points:

1. Types of Pricing Packages

Before you do anything else – even the physical work of the add-on – you need to map out your business strategy. What are you looking to offer, and what are the main goals to be achieved? Do you want to drive additional revenue with existing customers? Simply fulfill current client needs? Attract new clients? Whatever your needs, it’s best to narrow down your managed IT services pricing strategy.

  • “Tiered Cake” or “Tiered Pricing” Model: This is the most commonly used strategy, and it’s been proven to work. It’s about the Gold, Silver and Bronze levels of services. Many MSPs have found this approach successful, especially when starting out.
  • À La Carte Model: If you are not looking to offer the full menu of services, you can take the à la carte approach — pick and choose what you want to serve to a specific client.
  • Per User/Per Device: While these are two different beasts, they are often lumped together because of the way they are priced. Per user is actually one of the fastest-growing models available, as more MSPs just want to offer a flat-rate service where the client is billed the same amount each month.

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Which of These 3 MSP Pricing Strategies is Right for You?.

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