Pricing shapes almost every other part of an MSP. It determines margin, influences the type of clients you attract and sets expectations about what is included. Many providers underprice at the start and then struggle to correct it without upsetting long-standing clients.
What these articles cover
Articles tagged pricing discuss per-user, per-device and tiered models, bundling, project pricing and the treatment of third-party licences. They cover calculating the true cost of delivery, setting target margins, communicating increases and defining scope clearly enough to prevent unpaid work.
Start from cost and value
A sound price covers the full cost of delivery, including tools, labour, overheads and a reasonable allowance for risk, then adds margin. It should also reflect the value the client receives. Pricing purely against local competitors ignores both your costs and the outcomes you provide.
Protecting scope
Ambiguity in agreements leads to scope creep. State what is included, what is billable and how exceptions are handled. Review high-demand clients periodically and adjust agreements where usage has drifted well beyond the original assumptions.
Raising prices well
Price reviews are easier when they are regular and explained. Give notice, link the change to rising costs or added value, and apply it consistently. Clients generally accept predictable, reasoned increases more readily than sudden large ones.
Read these articles with the recurring revenue, operations and benchmarks topics to see how pricing decisions flow through to margin and long-term business value.
