https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Services Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
    • Diversity, Equity & Inclusion
  • MSP 501
    • Back
    • MSP 501 Information Center
    • 2021 MSP 501 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2022 Editorial Calendar
  • Awards
    • Back
    • 2021 MSP 501
    • Circle of Excellence
    • DE&I 101
    • Top Gun 51
    • Channel Partners 101 (CP 101)
  • Events
    • Back
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Services Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
    • Diversity, Equity & Inclusion
  • MSP 501
    • Back
    • MSP 501 Information Center
    • 2021 MSP 501 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2022 Editorial Calendar
  • Awards
    • Back
    • 2021 MSP 501
    • Circle of Excellence
    • DE&I 101
    • Top Gun 51
    • Channel Partners 101 (CP 101)
  • Events
    • Back
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Agents
  • Cloud Service Providers
  • Channel Partners Events
 Channel Futures

Business Models


Per Device, Per Month or Per User? Tips for Pricing Managed Services

  • Written by Dan Kobialka 1
  • October 23, 2014
Which managed services pricing model works best -- per device, per month or per user? Mike Byrne, AVG Technologies' (AVG's) director of partner enablement, shared his thoughts on how managed service providers (MSPs) can price their offerings during a breakout session at this week's AVG Cloud Partner Summit in Phoenix.

Which managed services pricing model works best -– per device, per month or per user? Mike Byrne, AVG Technologies‘ (AVG’s) director of partner enablement, shared his thoughts on how managed service providers (MSPs) can price their offerings during a breakout session at this week’s AVG Cloud Partner Summit in Phoenix.

Byrne noted standardization is key when it comes to pricing managed services. “Pricing is not an easy process, but it’s an easy process if you just apply the same methodology to it,” he told summit attendees.

Byrne also pointed out there are several factors that impact managed services pricing, including the competitive landscape, hardware costs, software costs, and technical and account management

So how should an MSP price its services? Byrne provided the following tips:

  1. Know your labor costs — “Labor is key,” Byrne said. “You really have to focus on all of the interactions between your team and the software you’ve deployed.”
  2. Know the competition — An MSP needs to review the competitive landscape to ensure it is offering managed services that meet its customers’ needs and are competitively priced.
  3. Know your personnel and internal costs — “When you’re building a managed services offering, the only figure you need to determine is what you’re paying your staff,” Byrne said. “From an internal cost perspective, it’s all about understanding your labor and understanding how long it takes for you to provide all of your deliverables.”
  4. Know your service delivery costs — It is important for an MSP to determine alert and notification, patch management and other service delivery costs before pricing its managed services.
  5. Know your devices — Checklists are vital for MSPs because they allow service providers to monitor and evaluate all of the devices that they support.

Byrne ultimately recommended per month or contract-based pricing for MSPs because it can help them better manage their costs.

“Per device pricing, to me, is the single biggest roadblock for MSPs, and the problem with per user is you run into scenarios where you have office staff versus non-office staff users,” Byrne added. “But MSPs can put every cost into all of their contracts.”

Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at [email protected].

Tags: Agents Cloud Service Providers MSPs VARs/SIs Business Models MSP 501

Most Recent


  • Strategy compass
    Zoom Vet Laura Padilla to Shape Airtable's Channel Strategy, Partner Program
    Airtable presents a "huge" opportunity for channel partners.
  • You are partnering with your customers so develop a longterm relationship with them
    5 Things Vendors Aren’t Doing that Partners Wish They Were
    What are traits of a valuable vendor/partner relationship? We asked our roundtable partner participants to weigh in.
  • Microsoft Envision UK
    Microsoft Creating a Front Line to Help Ukrainian Government
    Microsoft president Brad Smith explains how the company is supporting Ukraine, including with IT services.
  • Barracuda Discover22 EMEA
    Barracuda Sees Huge Shift to Managed Services Among Partners
    Nine out of 10 Barracuda partners now identify as MSPs as CEO Hatem Naguib details “going heavy” into managed services.

2 comments

  1. Avatar Joe Rohde October 28, 2014 @ 2:44 pm
    Reply

    This is very sensible on the
    This is very sensible on the ‘sell’ side, so long as the Vendor License enables it from the ‘buy’ side. If your supplier dings you for time, accounts or devices the flexibility to move away from that is greatly reduced.

    With the advent of PaaS as a delivery model it’s certainly possible to make these decisions as an MSP. Channel focused Vendors understand this and accommodate it so everyone participates in the revenue stream.

  2. Avatar Dan Kobialka October 28, 2014 @ 5:26 pm
    Reply

    Great insight Joe, thank you
    Great insight Joe, thank you for sharing!

    Best,
    Dan

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Stressed young people
    More Partner Pain Points: MSPs On Lack of End-to-End Security, 'New Normal'
  • zero trust security
    Leveraging Partner Expertise to Build a Zero-Trust Strategy
  • Drive revenue
    Proofpoint Protect: Rising Vendor, Partner Revenues Amid COVID-19
  • Growth plan
    N-able Empower Day 1: How to Grow Your Business

Upcoming Events

View all

Channel Partners Europe

June 14, 2022 - June 15, 2022

MSP Summit

September 13, 2022 - September 16, 2022

Galleries

View all

Zoom Vet Laura Padilla to Shape Airtable’s Channel Strategy, Partner Program

May 23, 2022

To Pay or Not to Pay: Big Question When Hit with Ransomware

May 23, 2022

5 Things Vendors Aren’t Doing that Partners Wish They Were

May 23, 2022

Industry Perspectives

View all

How SD-WAN Helps Secure the Expanding Network Perimeter

May 19, 2022

A Sneak Peek at the 2022 BrightCloud Threat Report

May 17, 2022

Build Customers for Life with CX and Lifecycle Selling

May 16, 2022

Webinars

View all

Simplifying SaaS Security for MSPs

April 27, 2022

How to Supercharge The Network to Support Your IT Superhero Moves

May 3, 2022

The 2022 MSP Challenge: Scale Service Delivery Despite the Talent Gap

April 21, 2022

White Papers

View all

The New Bottom Line: How MSPs Can Meet the Healthcare Crisis While Evolving Their Businesses

April 19, 2022

How to build a Security Operations Center (on a budget)

April 4, 2022

The AT&T Cybersecurity Incident Response Toolkit

April 4, 2022

Channel Futures TV

View all

AT&T, Microsoft, Cisco, ThreatLocker on Unlocking Partner Potential

Agents Share ‘Secrets,’ Industry Opportunity

May 11, 2022

Vonage Addresses Potential Partner Opportunity via Acquisition by Ericsson

May 5, 2022

Lumen Technologies ‘Built for Growth and Scale’

May 4, 2022

Twitter

ChannelFutures

What are traits of a valuable vendor/partner relationship? We asked our roundtable partner participants to weigh in… twitter.com/i/web/status/1…

May 23, 2022
ChannelFutures

.@Microsoft pres. @BradSmi on how the co. supports #Ukraine with $100M of free tech to fight #cyberattacks.… twitter.com/i/web/status/1…

May 23, 2022
ChannelFutures

Step up #cybersecurity defenses for the #hybridworkplace, says @alignitadvisor. dlvr.it/SQw31K https://t.co/tMzKcNgwAw

May 23, 2022
ChannelFutures

#CPExpo cybersecurity roundtable: To pay or not to pay ransom. @Sophos @Fortinet @Netenrich @Trellix @whitehatsec… twitter.com/i/web/status/1…

May 23, 2022
ChannelFutures

Analysts are sharply divided on the rumored acquisition talks. See what @royillsley from @OmdiaHQ had to say.… twitter.com/i/web/status/1…

May 23, 2022
ChannelFutures

We are proud to recognize @UNESCO's World Day for Cultural Diversity for Dialogue and Development, a day to celebra… twitter.com/i/web/status/1…

May 21, 2022
ChannelFutures

.@barracuda seeing huge shift to managed services among partners at #discover22 dlvr.it/SQmR1y https://t.co/driODezzpS

May 20, 2022
ChannelFutures

.@ConvergeTSC has just announced the acquisition of PC Specialists (@TIGConnect). dlvr.it/SQmMqK https://t.co/suLrTFx1W1

May 20, 2022

MSSP Insider

Business advice for MSSPs and news from the broader security channel.

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Galleries

Educational slide shows and images from live events.

Media Kit And Advertising

Want to reach our audience? Access our media kit.

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Events
  • Telecoms.com
  • MSP 501
  • Black Hat
  • IoT World Today
  • Omdia

WORKING WITH US

  • Contact
  • About Us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2022 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X