Last month, ChannelPro hosted an audio-only LinkedIn event and it couldn’t have been more timely. Pricing is the hot topic right now and Reddit is full of examples. u/TheBBQManual’s post about whether tiered good-better-best pricing works. u/Midwestbts asked what MSPs should charge hourly for non-contract work. It’s clear that there’s no one-size-fits-all answer.
We invited a panel of three experts—Matt Rose of Tech Rage IT, Rayanne Buchiancio of ABC Solutions, and Carrie Richardson of Fox & Crow Group—to join our Open Forum on Linkedin. No slides, no fluff—just real talk and practical advice. We also opened the floor to the audience to share their own pricing strategies, questions, and best practices.
Here are some of the biggest takeaways from the discussion:
Should MSPs Charge Setup or Onboarding Fees?
“Absolutely, yes. Onboarding is one of the most labor-intensive parts of the MSP-client relationship. You’re doing a ton of work upfront, and that needs to be reflected in your pricing. Charging an onboarding fee not only compensates you for that effort, but it also sets the tone. They should have skin in the game.” – Rayanne Buchianico
Rayanne Buchianico
Should MSPs Offer Long-Term Contracts with Discounts?
“Look, long-term contracts can give both you and your clients a sense of security, but offering discounts to lock them in? It’s a bad idea that de-values your services and can chip away at your profits. Instead, emphasize the partnership during quarterly business reviews and prepare the client for increases before the contract expires. That way, clients see the benefit of committing long-term and there are no surprises.” – Matt Rose
What’s the Best Way to Communicate Price Increases?
“Pricing increases should never be a surprise. If your contract has built in cost of living increases, let your client know via email or at your final QBR for the year when they should expect that increase. If you’re adjusting pricing upwards based on usage, meet face to face with your client to show them the reasons you’re increasing pricing.
“If you are a new MSP adjusting for your own error in setting profitable rates, you should first identify which clients you really want to retain, and begin focusing on ensuring their experience with you is extremely positive prior to meeting with them to explain your pricing increase.” – Carrie Richardson
How Do Your Prices Stack Up Against Competitors?
“There are plenty of ways to get that information, like peer groups, but I’m not sure that it really matters. Listen to what prospective clients need and build solutions that meet their needs. Keep refining your value proposition and sales approach.” – Matt Rose
Matt Rose
Flat-Rate vs. Good-Better-Best Pricing Model?
“I’m not sure that you need three service levels. Adding complexity means losing time. If you’re going to have tiers, don’t just dilute the lower tier to the point that it’s worthless. Also, remember that the old ‘all you can eat’ model is essentially dead…an unpredictable event like a pandemic can bankrupt you if you’ve promised unlimited support.” – Rayanne Buchianico
Per User, Per Device, or Something Else?
“Per user tends to be what most MSPs go with…but often if you run the numbers on per device, it’s roughly the same. Some industries have a lot of IoT or BYOD devices…so if you specialize in supporting those industries, per-device pricing might make more sense. Just stay consistent.” – Matt Rose
Pricing New Services Like AI Consulting
“When you’re pricing a new service, like AI, you should first consider how you’re delivering the service – if it is a productized service that you build once then use repeatedly, you can create exceptionally good margins.
“If it’s a service that is billed by the hour, you’ll need to approach it like a project – what is your billable rate for project work? Start there and consider the value the new service will bring to the client – does it save them 20 hours of payroll every week? Price it according to not only the billable time spent on the project, but on the value it’s bringing them.”– Carrie Richardson
Dealing with Vendor Price Fluctuations
Carrie Richardson
“Annual increases should be built into the contract. Most vendors provide plenty of notice prior to a pricing increase – there should never be a surprise bill for your client. Set expectations properly at onboarding – when the cost of products increase, your prices will reflect that.” – Carrie Richardson
Metrics MSPs Should Track to Ensure Success
“Gross margin and client churn rate are the big ones. You also need to keep an eye on service delivery costs. If those are creeping up but your prices aren’t, you’re cutting into your margins. One of the most important things is getting your techs to accurately record ticket time. We tie bonuses to it because it’s so crucial to understanding your profitability.” – Matt Rose
Selling Value, Not Just Price
“Price matters, but value matters more. Clients will pay more if they see the tangible benefits—better security, more uptime, smoother operations. The key is selling outcomes, not just the tech itself. The only way to know what a client values is to ask them – what you see as a benefit may not be important to the client – if there is misalignment between price and value, there will be attrition.” – Carrie Richardson
Other Pricing Challenges MSPs Face
“Legacy clients still on outdated pricing models can be a big challenge. It doesn’t matter how create the client is, if your margins are thin, you need a change. In the same way, if you’re still dealing with a break-fix client, you need to offer them a transition plan to managed services. They’ll pay more, but the efficiency gains and time savings are worth it.” – Rayanne Buchianico
Closing Thoughts
This was one of our most engaging events yet, with a lot of valuable input from our expert panelists. Pricing is tricky, but with the right strategies and clear communication, it doesn’t have to be painful. And don’t forget, we’ve got more online and in-person events on the calendar, devoted to dozens of topics that are impacting IT businesses and their bottom lines. Check out the full schedule at events.channelpronetwork.com.
Images: DALLE-3
