The art of setting the right price – it’s more than just a number.

It’s about understanding value, assessing market trends, and ensuring that your operational costs are in line with your pricing. For Managed Service Providers (MSPs), pricing isn’t just about covering costs; it’s a tool that can make sales seamless and position your service as the best in the market.

The Power of Pricing

One of the undeniable truths in business is that along with the quality of service, pricing plays a pivotal role. Especially for MSPs aiming to ascend in their domain, the price point isn’t just a monetary figure. It’s a determinant of profitability and, when done right, becomes an enticing value proposition that lures clients.

Crafting the Perfect Pricing Strategy

Crafting a winning pricing strategy is both an art and a science. Let’s delve into the critical components:

  • Understand Your Operating Costs: Every MSP must have a clear grasp of its operating costs. This isn’t restricted to the direct expenses. Dive deep into the indirect, non-billable hours essential for service delivery, like onboarding, training, and resource allocation. Knowing these hidden costs ensures that your pricing is both competitive and profitable.
  • Trend is Your Friend: The IT landscape is ever-evolving. Stay attuned to market trends. A proactive approach allows you to tap into new business vistas before they become saturated. For instance, the rise of Software as a Service (SaaS) in the early 2000s completely changed the IT provisioning game. Being ahead of such trends can give you a competitive edge.
  • Simplify and Standardize: Tailor-made might sound good in theory, but when it comes to pricing, customization can be a resource drain. Every unique pricing model requires additional resources, management, and oversight. By streamlining and standardizing your offer, you ensure optimized operations, reducing costs in pre-sales and service delivery.
  • Think Scalability: The needs of your clients will evolve, and your pricing should be agile enough to adapt. Scalable pricing ensures that as your client’s business grows, your services remain relevant and valuable to them. It’s a win-win – they grow, you grow.
  • Value Over Price, Every Single Time: The temptation to undercut competitors can be strong. But remember, race-to-the-bottom pricing might win you clients, but it won’t win you respect or long-term loyalty. Instead, focus on showcasing the value and benefits your services offer. Let your competitors slash their prices; you focus on amplifying your value.

A Blackpoint Success Story

When Alliance Infosystems joined the Blackpoint community at the beginning of 2023, managed security was a top priority, but streamlined billing was an unforeseen bonus. Before Blackpoint, they were spending an unnecessary amount per endpoint but by consolidating with Blackpoint Response, our cost-effective product bundle, they were able to experience significant savings rather quickly. What’s more is that if they switch their EDR solution to Managed Defender for Endpoint, available through Blackpoint Response, they’ll save even more per month! By consolidating vendors, they’re not only saving money but also experiencing additional, complementary features they didn’t previously have—all backed by a 24/7 SOC that responds to threats on their behalf. In addition to the newfound ability to train internally and scale client size without the need to hire, this simplification was a business win on all fronts for Alliance Infosystems.


In the crowded marketplace of MSP offerings, your pricing strategy can be your differentiator, attracting clients to your office. It’s more than just numbers; it’s a reflection of your value, your understanding of the market, and your commitment to your clients. By simplifying and standardizing, not only do you make internal operations smoother, but you also convey a clear, easy-to-understand value proposition to potential clients. Remember, in the world of MSPs, it’s not just about being the cheapest – it’s about being the best value.

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