Is It More Profitable to Offer Managed Services a la Carte or Bundled?
A new survey of 150 IT providers conducted by remote monitoring and management (RMM) software provider Continuum found that many MSPs leverage a "hybrid approach" to package and price services to support a variety of customers. Here are the details.
![TruMethods CEO Gary Pica TruMethods CEO Gary Pica](https://eu-images.contentstack.com/v3/assets/blt10e444bce2d36aa8/blt4af7f04f32eb2b47/65264618bb2ce28001609d32/gary-pica_0.jpg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
How should a managed service provider (MSP) price its services? It might all depend on how a service provider chooses to package them.
For example, a new survey of 150 IT providers conducted by remote monitoring and management (RMM) software provider Continuum revealed many MSPs leverage a “hybrid approach” to package and price services to support a variety of customers.
Among the survey’s findings:
75 percent of MSPs said they bundled their services; 59 percent noted they offered their services a la carte.
The three most common factors that affected the price of an MSP’s services were cost of technology or tools to support services (41 percent), cost of staff to support services (39 percent) and cost of selling services (37 percent).
Flat-fee pricing (61 percent) was most common among MSPs, followed by tiered (51 percent), per-device (49 percent) and per user (43 percent) pricing strategies.
“MSPs today leverage a number of pricing and packaging strategies in order to maximize their margins, and there’s no one-size-fits-all formula to guarantee success,” Continuum wrote in its report. “Rather than putting all their eggs into one basket, many MSPs leverage a hybrid approach.”
When it comes to packaging and pricing managed services, however, perhaps a simple approach may prove to be most profitable for MSPs.
Professional services automation (PSA) software company ConnectWise recently shared the following tips from Gary Pica, CEO of MSP training and solutions provider TruMethods, to help MSPs package and price their services effectively: