A Few Simple Steps to the Best Managed Service Offering
One of the best parts of being a managed service provider (MSP) is the abundance of opportunities at your fingertips. You can choose the services that make the most sense for you, without the pressure of getting locked in to something you can’t afford or don’t have the skills to commit to quite yet.
The secret to a successful MSP practice is two-fold: developing the best offering and determining your price. As you start evaluating the market to determine your initial service offering, keep in mind:
- Your skill sets and those of your company: Make sure you know what your strengths are and what services will bring the best results.
- Consider skill gaps you might need to fill: Think about what weaknesses you have on your team and where might you need more training.
- Know your options: Don’t miss an opportunity just because you think it’s not available. You’ve got an endless list of services, so take a look at them all.
Next is the hard part: figuring out what you should charge. You’re not alone if you dread determining the price of your services. Nearly 62% of MSPs surveyed by CompTIA rate this task as somewhat or extremely difficult. For nearly 95% of surveyed companies, setting the right price was seen as pivotal to their success.
So, where do you start? Do your research and run the numbers. Here are some helpful tips:
- Know what your hard costs are. How much does it cost you to keep your staff employed? How much do you spend annually on things like rent, utilities, insurance, etc.?
- Add in the costs of any skills gaps you’ll need to fill—either with training or new hires.
- Determine what your local competition is charging. Be careful here. Managed services are varied so make sure you’re making apples-to-apples comparisons when you consider the going rate for comparable services.
This process can often be a complicated one, so to make it easier we’ve developed our interactive burden rate calculator. This tool will help you determine how much it truly costs you to perform one hour of service. When you’re through, you’ll know the true cost of your IT service delivery, as well as how much you must charge per hour to achieve a desired margin on labor. Get started here.