In this article, we’ll cover these 4 questions:
- How does an MSP Bill for its services?
- How is my monthly price calculated?
- When and how often will my price change?
- What does sample pricing for a company with 10 users look like?
How does an MSP Bill for its services?
An MSP bills monthly in advance on the first of the month for services offered during the same month. We engage with our clients with a service contract that lays out the pricing for a term of usually between 1 and 3 years.
How is the monthly price calculated?
In pricing the contract, we consider multiple factors including:
- Number of daily computer users
- Number of workstations and laptops in the organization
- Number of servers and virtual servers
- Size of backup and retention required for the business
- Email and Microsoft 365 licensing needs
- Number of sites or locations and internet gateways needed.
When presented with our Managed Services Proposal you will get a flat-rate for all management and support services, as well as some included cloud-based and security services and equipment. Additionally, we also include an estimated monthly cost for your Microsoft 365 Licensing requirements. This amount will fluctuate based on the number of licensed users you have at any given time during the month.
When and how often will my price change?
All contracts are reviewed annually. If the makeup of your IT infrastructure has changed since the previous year, you will be presented with a new proposal based on the current infrastructure and users. Generally during a one-year term, your price would stay the same and not increase or decrease unless you experienced a drastic growth or reduction in the size of your infrastructure and users. A 30% variation either up or down, could trigger a review and requote of your contract.
What does sample pricing for a company with 10 users look like?
We price our Managed Service agreement in a way that allows you to easily budget your IT expenses for the year. As our agreements are designed to be inclusive of every critical service and system you will require throughout the year, you can rest assured that you’ll never have to worry about being presented with an unsuspected and unbudgeted IT service expense throughout the term of your agreement.
Your flat monthly rate includes all the services we could think of to ensure that most of your IT costs are covered. A monthly agreement for companies between 10 and 15 users would typically range from $1,500 to $2,000 per month. We strive to avoid any extra costs associated with the daily management of your IT Systems, Infrastructure, and support of your users. Any extra costs are usually from client requests like replacement PCs or special one-off projects.
For details on everything included in our Managed Services agreements, please read our article on What is included in your MSP contract?
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