Stop Underpricing Your MSP Agreements

Managed Services Agreement pricing can be a bit of a challenge. MSPs often don't have a place to start to figure out pricing and I hear about pricing a lot in my travels, so this video is all about a quick and easy way to price your MSP Agreements for profitability. Building margin into your Managed Services Agreements helps ensure profitability further down in your Profit and Loss statement.

Pricing your MSP Agreements/Contracts for margin is critical to be profitable. If you underprice your contracts you're causing downstream profitability issues. You must keep your Cost of Goods Sold (COGS) in mind when you build out the pricing.

The method I walk through in this video can easily translate from user/endpoint pricing to server, network, and security pricing. As long as you're paying attention to COGS and build margin in on whatever side of your agreement you should be in a good spot.

This is a very Managed Services centric video but this should apply to other industries as well. Knowing your Cost of Good Sold (COGS) and building margin on top of that is a good thing to follow in every industry.

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