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Pricing

How do MSPs price their services?

Most MSPs price on a per-user or per-device basis, with a flat monthly fee that covers all included services. The three most common models are: per-user (all devices owned by that user covered), per-d

Direct answer

Short version

Most MSPs price on a per-user or per-device basis, with a flat monthly fee that covers all included services. The three most common models are: per-user (all devices owned by that user covered), per-device (each managed endpoint priced separately), and all-you-can-eat (flat fee for unlimited support). The right model depends on your client mix, your cost structure, and your margin targets.

Full explanation

The longer answer

Per-user pricing is the most common model for MSPs serving knowledge-worker clients (professional services, healthcare, legal). Pricing typically ranges from $75 to $200/user/month depending on market, scope of service, and tool stack. Per-device pricing is more common for manufacturing and retail clients with high device-to-employee ratios. AYCE flat-fee pricing simplifies the client's budget but transfers financial risk to the MSP if support volume exceeds projections. Most experienced operators have moved away from AYCE and toward per-user models with project rates for out-of-scope work. Pricing should always start from your fully-loaded cost per technician hour and your target gross margin (typically 65-75%), not from competitive benchmarking.

Common misconceptions

What it is not

The most common pricing mistake is starting from what competitors charge rather than from your own cost structure. The second most common mistake is including unlimited project work in the monthly fee — project work should always be priced separately. Discounting to close a deal is almost always cheaper than you think and more expensive long-term than you realize.