Are You Overpaying for IT Managed Services?
We also have this information in video format.
Understanding Pricing Models Can Help.
When you’re shopping for IT services, it’s important to understand the different pricing models that MSPs and IT providers use. Not only do you want your provider to be transparent in their pricing and their model in general, but you need to know when you’re comparing providers as well. Here are the most common we’ve seen in the industry:
Fixed-price model: This model involves a fixed monthly or yearly fee for a set of services. The client pays a fixed price, regardless of the amount of work performed by the MSP.
Time and Materials (T&M) model: The MSP charges based on the time and materials used for a project or service. This model is typically used for short-term projects or ad-hoc services.
Per-user or per-device model: The MSP charges a fixed fee per user or device that requires support. This model is commonly used for services such as desktop support, software updates, and security management.
Value-based pricing model: This model involves charging based on the value of the service provided to the client. The MSP and the client agree on the expected business outcomes or benefits, and the MSP charges a percentage of the value delivered.
Hybrid model: This model combines two or more pricing models. For example, the MSP may charge a fixed monthly fee for basic services, but charge extra for additional services or support.
Each pricing model has its advantages and disadvantages, and the MSP and the client should choose the most appropriate model based on their needs, budget, and business goals.
Here at Simplex-IT we use a variety of these pricing models at different times. For the most part, our Managed Services Agreements are priced using the Value Based Pricing Model. We price additional projects using Time and Materials and there are a few services that require a per-user or per-device model type pricing. One thing is for sure though, we are always transparent in our pricing, our invoices are always clear, and you have a direct line to us should you have questions whatsoever.
