Aside from the service quality, managed service provider pricing is usually considered when choosing your managed service provider. In addition to that, the variety of services and flexibility attracts customers the most.
What are the different pricing models offered in the market today? Let's take a peek at each of them in this article.
Based on the number of devices
This is the most basic pricing model offered by MSPs. They usually charge clients a flat fee for each type of device as dictated in the contract. It increases the monthly charge as customers add more devices. With this easy-to-quote pricing model, an MSP may charge an X amount of fee per laptop, per printer, and or per server.
Based on the number of users
This managed service provider pricing offers a flat fee per consumer, per month. It addresses all of a user's IT requirements, regardless of the number of devices they use.
Keeping track of devices can be difficult as users have several computers, phones, and tablets. By using a flat rate per customer, you can help clients understand how the contract would escalate in price, allowing them to easily monitor and make billing changes.
Many consumers like this model as it disregards the number of devices that your organization is using. Companies with a large number of devices benefit the most from this pricing model.
Based on value
This pricing model is based on the value of solutions delivered by the MSP. It has a comprehensive coverage, providing IT solutions on all aspects of a client's business. This model is designed to address not only acute pain points, but also latent needs and other possible threats.
Essentially, the MSP serves as the client's outsourced IT department. Organizations interested in utilizing their resources to strategic goals would likely sign up for this.
Monitoring-only
As the name implies, MSPs that use this model only provide monitoring and alerting services for a certain part of their clients' IT infrastructure. Customers on a tight budget opt for this model because it is very cost-effective since it takes the bare-minimum approach.
With this pricing model, MSPs keep its clients informed about problems, which are then forwarded to and addressed by the client's internal IT team. The MSP can provide assistance if necessary but for an additional fee.
The service levels for monitoring can be as basic as tracking issues and sending alerts to in-house IT workers, or the MSP can provide a far more in-depth service, such as advanced assistance and issue resolution. This model is marketed to businesses of all sizes, from small and medium-sized businesses to large enterprises.
Tiered
These are service bundles offered by MSPs. The costs of the packages increases as more robust services are provided. Organizations can choose the service package that best suits their needs and budget.
These service packages are classified as "Bronze," "Silver," "Gold," and "Platinum," with Bronze indicating the most affordable package (having only the basic level of services and support), and Silver and Gold indicating the more costly ones but packed with features.
For example, Bronze may offer basic remote assistance, upgrading, and patching. Silver may include on-site support in addition to the services provided in Bronze, while the Gold package may include emergency, after-hours support in addition to the services offered in the two previous packages.
All-you-can-eat
This is one of the most flexible pricing models, as it includes remote support, on-site support, as well as lab or bench time for a fixed rate per month. Here, MSPs provide services for a certain amount of time every day and charge clients extra for services rendered outside of that time period. MSPs may also provide support 24 hours a day, seven days a week, 365 days a year in some cases. Customers may choose this model as it enables them to anticipate costs and avoid any billing fluctuations.
À la carte
This model enables clients to select the services they want to create a custom plan. This is one of MSPs' least favorite models because it limits profitability (as opposed to the tiered or all-you-can-eat models). It also requires MSPs to spend a significant amount of time detailing all of the services they provide. As a result of these factors, the majority of MSPs have stopped using this pricing model.
Which pricing model is the most suitable for you?
As an organization, deciding which model is best for you can be challenging, as you must find a balance between paying based on your ability and meeting your needs. When choosing a pricing model, you must also consider other contributing factors such as the features provided as well as its scalability.
MSPs ensure service reliability by continuously monitoring your systems and responding promptly when needed. Contact ITarian to learn about the managed service provider pricing models we offer.
