Should managed services providers (MSPs) offer per-device pricing or per-user pricing? The new answer could be Stress Per Dollar pricing.

Joe Panettieri, Former Editorial Director

December 19, 2013

1 Min Read
New MSP Pricing Model: Your Stress Level Per Dollar

Managed services provider (MSP) pricing models certainly vary from one company to another. Some MSPs focus on per-device pricing. Others are shifting to per-user pricing. TruMethods recommends “Chocolate Cake” pricing. But the latest trend? It’s called “Stress Per Dollar” (aka Headache Per Dollar) pricing. Here’s how it works…

Let’s say you’re bidding on a managed services contract involving Acme company. If Acme will generate:

  • Low revenue and low stress for you, that’s business worth pursuing.

  • High revenue/high margin/high stress for you, that’s business worth pursuing.

  • Low-revenue/low margin for you that causes a lot of stress, that’s not worth taking.

Special thanks to Dave Cava, COO and co-founder of Proactive Technologies, an MSP in New York that supports hedge fund companies. Cava and I had a low-stress/low-cost/high-value breakfast this morning. When he mentioned the “Stress Per Dollar” concept, I knew I had to share it with MSPmentor’s readers.

Yes, you already knew the basics about high-stress customers you likely need to fire. But when Cava boiled it down to the “Stress Per Dollar” sound bite, I smiled and said MSPs will love it. 

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About the Author(s)

Joe Panettieri

Former Editorial Director, Nine Lives Media, a division of Penton Media

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