Have you ever attempted to find a clear answer on the amount you’ll need to pay for IT support or what managed IT services cost? Service providers managed by Managed IT (MSPs) don’t want to make public their prices. A majority of MSPs won’t offer a price by phone.
Why? The reality is that MSPs are hesitant to disclose information to their rivals (secret customers) or risk losing a lead before they can justify their offer.
This blog will allow you to look behind the curtain of our industry, and teach you how to make an educated decision regarding the service provider you choose. Together, we’ll explore the key questions that will aid you in making the right choice to select the best technological partner.
What are the Various kinds of Managed IT Service Providers?
The truth Is that the majority of mature MSPs will offer the same amount each month for their customers when you take everything together. So why do we keep pricing secret? Let’s look into the market for a moment to find a solution. The MSP industry is comprised of four distinct kinds of MSPs: Outsourcing IT support for small and medium-sized businesses.
- Trunk Slammers Small businesses with two to four employees with no processes and only a few clients. They could employ the same tools and techniques as mature companies and appear like an established MSP thanks to cloud-based software and marketing, however, they lack knowledge, experience, and follow-up, as well as the capacity to expand over time. They are typically technically proficient but lack direction for business.
- value MSPs small businesses with a staff of 8-15, responsive services, and clients who are interested in keeping costs of IT support at a minimum. These teams offer an affordable service that includes “break-fix” services as well as hourly services. They typically have only a small toolkit and do not have expertise in business technology consultancy. Value MSPs often lack large internal processes as well as controls and checks on their personnel and security.
- Bolt-on MSPs are usually very large companies. These firms have fundamental business expertise that is not IT-related like providing telephone systems, printer rentals insurance sales, accounting services, or audio/video solutions. They are trying to establish a new income stream by offering managed IT. However, the majority of them aren’t equipped to manage the technology of other organizations in the same way that an established MSP is.
- Mature MSPs usually have over 25 employees, they have been operating in the MSP field for more than 10 years. They have documented processes, which include onboarding, consultation, security, service, and project management. They have separate departments that are responsible for handling projects, support buying, sales, and managing accounts. Their main focus is on business technology support as well as strategic consulting. They typically offer the option of a monthly billing subscription or service with an integrated strategy to provide proactive and timely IT support services.
Why do MSPs Protect their Prices?
Understanding the four kinds of MSPs is an essential component of understanding why MSPs tend to obstruct public pricing.
Senior MSPs have a common bond. At conferences, we’re usually quite friendly with one another. Everyone knows that we pay approximately the same price per user/computer per month for our services. We are always looking to compete against one another for new opportunities, since often it’s an issue of fitting and the scope of work, not cost. The Top Tech and IT Capabilities to Master in 2024.
The main reason why advanced MSPs don’t like sharing their prices is due to the three other types of MSPs.
Without the expense of training, accounting security, and business processes, trunk smashers and value MSPs usually offer lower rates in the sales process. Buyers who aren’t educated may not know how to inquire about the level of maturity of an organization or the ability of their company to provide services and how this will affect pricing.
Bolt-on MSPs usually offer an extremely low-cost service with a professional sales staff. Bolt-ons will often not be able to offer consultative technology delivery because of their absence of a focus on becoming an MSP. They usually have other, more urgent business lines. Buyers often get trapped in the low-cost proposal and are then faced with higher cost of contracts over time, due to additions and other items that were that are not in the initial offer.
- Mature MSPs usually ask to examine a client’s technological environment before determining pricing.
- They make the effort to comprehend what the business requires before determining the price for IT-related services.
- These typically include solutions that offer a range of software and services as part of a bundle.
If everything is broken down established MSPs typically charge around the same amount as other MSPs but some might cost more due to their vertical knowledge, customer service, or a specific customer need. However, in reality, the cost will vary based on the services and support you require to safeguard your business from a loss and to scale efficiently.
What is the Current Price for IT-related Services?
The average cost to manage IT Services in the United States is between $125 and $175 per person for a month. If you can add sophisticated security solutions and consultation it could be up to $200 – $250 per month for a single person.
MSPs provide different billing options, including:
- Charging per person
- Payments per server or computer
- A flat fee to be able to cover all costs
However, the price of IT services offered by an established MSP will be in the same range per month. If the offer seems too appealing to be true, it is. If the price seems over the top, you should know how the offer will be broken down and what you’ll receive for your sum of money.
Let’s take that, for instance, you own an enterprise with 35 employees and two servers. You don’t require advanced security under PCI, HIPAA, or other similar requirements. It Service expected to cost between $3500 and $5500 monthly for IT services. This is the pricing offered by established MSPs and does not include licensing services such as Office 365 or VoIP.
What is the Reason for paying an Onboarding fee and What is the Cost MSPs Cost for Onboarding?
The cost of onboarding to get started with an MSP will help cover the initial setup expenses related to transitioning onto their offerings, such as the assessment, planning, and deployment. This cost usually reflects the time, resources, and experience required to take on the new client efficiently to ensure a smooth and efficient transition to the managed IT services of the MSP. You may pay the same in a month’s service plan to join an established MSP.
The process of onboarding involves a variety of tasks like evaluating the current infrastructure, setting up software and systems, transferring data, and educating staff and staff, all of which contribute to the total cost.
The exact amount could differ according to factors like the degree of complexity of the client’s IT infrastructure, the range of the services required the degree of customization required, and what size of the business. Onboarding costs can be as low as hundreds of dollars to thousands of dollars, with certain MSPs offering flat-rate services or tiered pricing depending upon the level of the onboarding services offered.
It is not a good idea for your service provider to cut corners in the process of onboarding because you’ll get what you spend for. The price of IT service at onboarding shows the quality of the knowledge as well as the support and resources that you’ll get. A reliable MSP will help make the transition as easy and efficient as it can be.
What is your experience on the Plane consists of?
The process of onboarding establishes the tone of the working relationship between a managed service provider and a customer. A well-designed onboarding program should deliver fantastic customer service beginning on day one. It should also tighten up security concerns, and give clear directions to clients when they think about the future.
Let’s look at three benefits you can expect when you sign up from your Managed IT Service Provider.
Excellent Customer Experiences
An effective onboarding process should focus on delivering excellent customer service and help you establish an enjoyable relationship and your service provider. You need to be sure that you’ll receive superior support beginning with the first call, and continue throughout the relationship. Your MSP should have an onboarding process that is beneficial to your entire team.
Maximum IT Security
If a client is connected and properly integrated, the MSP will have a good knowledge of the client’s IT system and security practices. This aspect of the process is crucial because it assists the MSP in identifying the most significant security issues. If a company is approached they need to take the time to study the surroundings and note any security issues, and devise a plan to address any issues.
Strategic IT Planning
An effective onboarding experience will provide a clear plan of what the customer needs to be focusing on now and what needs to be budgeted for the near future. IronEdge provides IronEdge our clients get an IT strategy plan that defines plans for the next three years.
In the background of a properly tested onboarding, the technical team visits the client’s sites to review the present IT environment before launching support. In the end, there’s nothing more annoying than working with a company that does not know the client’s network and then starts to discover it on the fly on the first call for assistance.
When it comes down to it a thorough and well-vetted onboarding requires time, resources, and a lot of time and preparation, in addition to the high costs involved with it.
The purpose of a properly vetted pay-onboarding procedure is to allow both the clients and MSP to develop a customized plan, establish a positive partnership, and be able to start working when assistance is required.
Questions to ask the managed service provider
Although the majority of older MSPs have the same rates, however, not all MSPs offer the same knowledge or solutions. Here are some questions you need to ask when searching for a managed IT services provider.
Ask each MSP what’s included in their packages:
- Do all our employees have access to Helpdesks directly?
- Are there any limits on help desk inquiries or requests?
- What is the best way to prioritize tickets or requests for emergency assistance?
- Do you provide other services? (this could be an indicator that the services are not sufficiently general)
- What security programs are we using on every computer?
- Do we have security training for users?
- Are we able to get a summary of all the apps and services that we can avail of with this package?
Ask questions regarding their maturity as a business:
- Are you in need of a multi-factor authenticator (MFA) for every one of your devices that supports your company?
- Have you got a change management procedure for all your clients and systems?
- What is the frequency that your employees need to obtain certifications for the equipment I use in my company?
- What experience in technology do your account executives have?
- How long have you been in the business?
- Let me know about the background of your company. Was it always a tech service provider?
- How many employees work for your company as employees of W2? Do they have a background check?
Discuss how to run a business:
- Do you outsource certain of your core functions that help my company?
- We will be in contact with you for an agent or will another person be given our account?
- Do you have someone who is dedicated to a strategy of accountability?
- Are our contact person (or our account manager) in addition to the technical work, and being a multi-tasker?
Ask for references:
- Are you able to provide two repeat customer referrals?
- Can I get a recommendation from a customer of my size or vertical?
- Are you able to provide a reference from a customer whose experiences were rough but then improved?
Searching for a brand-new tech provider isn’t simple, but with a little training and experience, you can eliminate a lot of decision-making processes and come to a decision that is more than the price of IT services by itself.
Are you interested in learning more about the qualities to find in a managed services provider? Get the complete guide right by clicking here or call IronEdge to ask about any further concerns.
Read more:
