MSP Global Pricing Trends: 25% Will Raise Prices in 2013

MSP Global Pricing Trends: 25% Will Raise Prices in 2013

Roughly 25 percent of MSPs plan to increase their managed services prices for 2013, but a fifth of MSPs expect to cut prices in 2013 and 55 percent will hold steady on pricing, according to a Global Pricing Survey report from Kaseya. But what are the actual pricing models? For instance, how much are MSPs charging for their managed services and break-fix services? Also, are MSPs using a per-device pricing model or something different? Here are some of the key data points.

I'm going to share U.S.-centric stats. But if you read the Kaseya report (registration required on Kaseya's site) you'll see results for multiple countries worldwide. In the U.S., Kaseya heard from 404 MSPs. And those MSPs offered the following data points...

1. Business Models: Eleven percent focus on break-fix and block hours, while 89 percent have a deeper managed services business model.

2. Who Sets the Pricing Strategy in U.S.?

  • CEO, 33%
  • Price match/the market, 27%
  • Vost based, 25%
  • Value based, 15%
3. Break-Fix/Block Hours Respondents in U.S.:
  • Average hourly rate in U.S. is $121
4. For MSPs, the Primary Pricing Models in U.S.:
  • Per device, 31%
  • Tiered/bundled services, 53%
  • Value-based services, 16%
  • Note: I don't think Kaseya specifically asked about "per user" pricing
5. For MSPs in U.S., pricing averages included:
  • $67 per desktop per month
  • $218 per server per month
  • $22 per mobile device per month -- though I don't see a breakout for tablets and smartphones vs. notebooks and mobile PCs
6. For MSPs in U.S., the average size of a monthly managed services contract is:
  • Less than $1,000, 12%
  • $1001 to $2500, 67%
  • $2501 to $5000, 9%
  • $5001 or more, 12%
I definitely have some thoughts on the data points above. But first I invite MSPs to weigh in with two of the most basic questions of all:
  • Can you really raise prices in 2013?
  • And are you worried about those lucrative service monitoring contracts shifting to the cloud? If so, what are you doing to monetize cloud-based server monitoring and maintenance?
That's all for now. I look forward to reader perspectives and will also weigh in a bit more once I've had a chance to more fully digest the report. Thanks to Kaseya Director of Marketing David Castro for sending the info MSPmentor's way.




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