From Break-Fix to All-In: A Complete MSP Pricing Model Overview

there are three main ways that you can price your MSP Services we're going to be talking about the benefits of each one and maybe some different options you've never actually heard of my name is Harrison Baron from growth generators. we help msps with sales training and marketing before I get into today's video I do want to mention that I'm going to be using a pricing calculator in this video there is a link down below with a free training you can click it you can go through that training if you'd like and it'll come in into your inbox shortly after that number two come hang out with us in the Discord we are growing like a weed if there's any reason you can't get in the Discord please let me know down in the comments Discord just does not like my never expiring link for whatever reason but the easiest way to get there is growth generators. Discord so let's talk about the three ways to price your MSP services and if you're not an MSP don't worry about it this is still going to be for you because a lot of people don't realize that there's kind of businesses that graduate into the MSP world and then businesses that start into the MSP world and then there's also businesses that we can call it graduate into the security world as well and it doesn't really matter how you got there it just matters the journey in which you went through so the first one is oneoff pricing more of a one-time price and I've actually built this into the calculator here I'm going to share my screen but you can go through it's not uncommon for businesses to have have that one off price and this calculator will help you figure out your numbers so that way you know hey I know that I charge this I don't really know if I want to give a discount and if I do want to give a discount what does that number actually look like and I've just included some of the ones here and you can add your own as well but there is a break fix model now is it something that I would recommend no it's not something I would recommend it is a good way to start it's a good way to start getting into technology it's a good way to start building your MSP and it's a a lot easier to find clients weirdly enough they pay you one time and they don't have to worry about that reoccurring subscription model every single month where they're paying you month after month yes you do a ton of work but for small businesses sometimes that's a good foot in the door now that's one option and you can use one you can use two you could use three of these to ultimately grow your business the second option is figuring out what actually works for your MSP most msps pick a multi kind of product line and what I mean by that is the good better best the gold silver or silver gold Platinum Platinum Diamond ultra you know basic Plus premium plus whatever it is but it's pretty common for msps to pick one of those three where they have different services that are kind of involved in each one of those and I'm going to show you kind of what that looks like with with this MSP pricing calculator so this is the the simple version if you'd like that we do have a more advanced version there's a link down below for that as well in in MSP Heroes but you can see here like server support configurations patching things that you're going to be doing on a monthly basis and what you can do and what most msps do is they figure out hey I want to offer server support or patching cloud services and you know maybe no help Des services on a regular basis for my clients great so have your basic and then your premium has maybe unlimited remote support help desk so anytime the customer has an issue they call in they put a ticket in online and hey you're Off to the Races and you're helping them and the cool part is is you don't have to ask them for any more money that's the nice part about it it alleviates the struggle for you of having to say now I got to send another invoice how much time did I actually spend in that break fix model you might spend a lot of time depending on what you're actually doing and sometimes the customer doesn't really know what to expect where in the next model where you have multiple pricing plans the customer can pick what works best for them whether that's a basic level of support with antivirus and maybe some cloud services or is it a more advanced option where it's 24x7 or maybe 9x5 or or 9x6 remote support or the Ultra Premium where hey we're going to wake up at every hour of the night or we're going to have a dedicated team member to address any of those issues and if we have to go onsite that package actually includes it and the cool part is is you can actually go through and use this calculator right you can adjust hey I want to do I have a 10 computers 10 users and you know what I'm going to charge for patching every month we'll call it $5 or $7 per computer right you figure out your hourly rate how many patchings you're going to do and you could figure that out and then you could do per PC we have 10 computers all of them need it whoops I I don't need to hit enter I need to hit yes I could type that in and then it'll tell you hey we have 10 computers at $7 each that's $70 and it adds into your monthly bill it makes life super simple and the cool part is is you can figure out what's in your good plan your better plan and your best plan like I said if you want this there's a link down below for it but that's what most msps do they either start out with break fix where they go right into the MSP world and they pick two three or even up to four kind of pricing plans that fit well for them and then it gives the customer a nice opportunity a nice menu per se to say hey what do I really want for my business do I want to pay for that Ultra Premium it's kind of like insurance right if you you could actually sell a lot of your services using that as a good comparison but if you want the hey you're going to go to bed at night every single night not a care in the world and know that your bill pretty much is never going to go up with the exclusion of giant projects you might want the premium one which could be depending on how you use your calculator several hundred per month which is fantastic but not every customer is going to be eager to spend several thousand a month with you if we figured it out it's $200 per computer times 10 computers that's $2,000 a month every single month that that customer is going to have to take out of their pocket and hand over to you which is great that's exactly what we want but not every customer wants to do that maybe they want to spend half of that or maybe they don't have the budget for those opportunities so that's where things can get a little crazy one of the cons of that like I was going to say is not only do you have that but when your technicians have to go out there and call the customer or do the work the technician has to do one extra step every every single time they plan on helping a customer this is where things can get a little kind of interesting but also messy and confusing because those technicians now have to stop and they say oh okay hold on let me look well they have some server support they do have oh you know what they don't have full-time remote support so we have to build that out at I don't know $150 $175 $200 whatever your hourly rate is um no help Des support and they have to sit there and read to see what's actually included because if it's not actually included it has to be billable you still got to make the money on it you can't pay your technicians to do stuff and and they don't follow the rules and you don't end up making money the technician still has to do that but now you have to send you have to take time out of your day to calculate it at the end of the month and then send an invoice to the customer so then you could say Hey you owe me this amount of money and in a lot of cases that usually assuming the environment is anything older has has just it hasn't been touched in a while usually exceeds the price of a all you can eat subscription where they get to call in and say for any issue that they have this is what's going on and it's included in there but those three or four different plans do put a stop in the process or at least a halt in the process and then at the back end you and your team have to go through and say what do they actually owe now the third pricing plan is one that I wasn't sure if I was going to include because I do know about it but it's definitely not the the best for every MSP and that is the power of one now you might be thinking Harrison what does that even mean right we went through break fix where it can be messy you could spend a lot more time on it that you have a one set price and it's just a one-off and it's a good way to get your foot in the door you have those three pricing plans or sometimes four pricing plans and you get to pick so I'm sure by now you've probably figured out what the one is and the one is your only plan it's whatever you decide nothing more more nothing less there's only one plan in there and you could actually once again use this calculator you could figure out your numbers you could plug them all in here you could say is it per PC per user right the per service box if you decide to use that and just don't touch the orange boxes it'll give you an idea and you could figure out hey if you want to do a little bit of a discount we priced it out so you can get a small discount if you're more than 6 to 10 PCS but you'll actually be able to go through here and you might even want to include one off or not want to include oneoff services but you have a one package system it's everything that you plan on having all in one package and there's zero confusion across the board every customer you get in the future is going to get the exact same package no ifs ANS or butts about it every customer that you have has the exact same package the massive benefit of this is technicians get to know that hey everything's included with this plan hopefully if that's what you decide to do and they know that hey because everything's included we just get to work as we want to work somebody calls in I don't really have to worry so much yeah they should be putting in time for the tickets so you can measure and see the data on the back end but there's only one package they don't need to look up well is this bailable is this non-billable does this fall into billable okay you know what let me get up from my desk and go ask Johnny because Johnny's the one that sold this it removes all of the headaches and it's a really really cool business idea the problem with that is is it's usually pretty expensive right right off the bat you're including probably everything so if we think about it right we have Google workspace $15 a user your help Des support which you might value at $50 to $100 per computer you have basic breake fix that's included computer tune-ups that's included backup and data recovery which however space they you know however much space is in there right up to a certain point threat detection cyber security updates patching all of that kind of stuff then begins to add up quite a bit per computer basis and most companies just don't have the budget not all there's plenty of companies that do but most companies don't have the budget to say for $350 you guys do everything now we went from maybe2 or $3,000 for your Premium plan to that 3500 maybe it's 350 bucks per computer times 10 computers $3500 per month that's a big pill to swallow but I promise you you being the business owner you're going to be smiling your way all the way to the bank because one you're going to make a lot more money but you're going to have a lot less customers you're really looking for that diamond in the rough customer who's going to be the perfect fit the perfect customer and they're never going to give you a hard time because they have the only plan that you recommend and you offer so there is no other options you can't com you can't even compare yourself to other people because you only have one plan which is probably an all inclusive everything where other competitors have well we have this plan we have the basic we have the premium we have the premium plus and then we have the ultra it gets pretty crazy in there but that is something to seriously consider there's only three ways to really price your MSP out it's that break fix and that does include one time oneoff billing billing that you have to do for your support those multipl options and then the one and what works for you is going to be very different than what works for the next person so don't think oh my goodness Harrison made this video and I got to get the pricing calculator and I got to figure out my numbers cuz I want to get to the one plan it might be infinitely longer for you to get your first client which would stop you from actually growing it's okay to have multi plans it's okay to have one plan and it's okay to be break fixed you just have to figure out what works best for you your business and your technicians so that way you can do it over and over and over again because the key to success with an MSP is scalability and scaling that so whatever you pick as long as you can scale it you're going to be golden but there are some caveats to all of those you have to figure out way out the pros and cons for you and your business so that way you can succeed if you want the pricing calculator there is a link down below I'd appreciate if you guys go check it out it's a pretty cool tool and it's going to help you just not go broke it's going to put a lot more money in your pocket every single month by the way as many of you guys know this is movie theater money it is motion picture money it is not real money I'm not one of those influencers out there but it is cool that to have and one of you guys sent it in so I appreciate that out of you guys I hope you guys enjoyed this video check out the master class check out the Discord I love the heck out of you guys I'll see you guys on the next video and some cool videos coming up bye