Six tips for determining your MSP pricing
Pricing can be a nerve-racking endeavor for managed service providers (MSPs). Too little and you’re not only underpaying yourself, you risk looking green and undervalued. Too much, and prospects might ghost before you even get to the proposal stage.
And the shift from simple break-fix models to layered, value-based MSP pricing? Yeah, that didn’t exactly simplify things. With service bundles, tech stack differences, and regional cost fluctuations, no two pricing strategies look alike. The goal is to hit the sweet spot: charging what you’re worth while still protecting healthy margins.
Here’s the deal: if your crew is dialed in, delivering stellar service, and making your clients feel like VIPs every single day, you earn the right to charge more. Engaged techs respond faster, solve issues cleaner, and create those magical “wow” moments that clients remember.
When your clients love your team, they’re not shopping on price, they’re paying for peace of mind. That’s the power of a high-performing crew. And that’s where CrewHu turns your service quality into pricing confidence.
Six tips for determining your MSP pricing
Before diving in, remember: your pricing should be flexible. Markets shift. Expectations evolve. And if you’re not adjusting your rates regularly, you’re silently shrinking your margins. Pricing isn’t just about covering costs, it’s about sustaining profitability while showcasing value. That’s where a strong crew culture plays a surprising role (more on that in a second). Here’s how to build a smarter pricing strategy:
- Assess your costs: The last thing you want is to lose money delivering stellar service. Start by calculating the true cost of delivering each offering. This includes your tech stack, labor, tools, and your crew’s time and energy. Compare your costs to industry standards, but also to what a client would spend staffing an internal IT team. This helps you set confident pricing, and also arms you with a compelling narrative when clients ask, “Why this rate?”
- Don’t Be a Conformist: Knowing the industry average is smart. Copying it blindly? Not so much. Use market rates as a reference, but price for value. Got a team with advanced cybersecurity chops? Fastest response times in your market? Specialized compliance support? Price it like it matters, because it does. Your unique edge should show up on the invoice.
- Align Your Sights: Not all clients are created equal. Different industries demand different levels of support. HIPAA compliance isn’t the same as retail POS management. Make sure your pricing reflects the regulatory and operational realities of each vertical. Don’t just sell hours, sell outcomes.
- Consider Bundling: Smart bundling turns “meh” margins into revenue machines. Package your services in a way that highlights your strengths and makes it hard to compare apples to apples. Throw in extras like advanced reporting, proactive audits, or faster SLAs to create sticky value, especially if your engaged team consistently delivers above and beyond.
- Think Ahead: MSP pricing isn’t just about today, it’s about staying profitable tomorrow. The tech landscape shifts fast, and so do client demands. Design pricing that leaves room for growth, scale, and flexibility. And here’s where employee engagement matters: an aligned, motivated crew handles change better. They're more efficient, more consistent, and less costly to manage, giving you healthier margins without cutting corners.
- Go A La Carte (Strategically): Line-item pricing can be risky, but when done right, it becomes a powerful research tool. Offer baseline packages with flexible add-ons to learn what your clients value most. You’ll not only close more deals, you’ll spot trends that help shape future offerings. Just make sure you’re not nickel-and-diming your way out of recurring revenue.
Crew Engagement: The Hidden Multiplier in Your Pricing Power
Let’s connect the dots: your pricing strategy is only as strong as your team’s performance.
And performance? It lives and dies with engagement.
- When employees feel seen, valued, and rewarded, they show up differently.
- Faster response times. Higher CSAT. Fewer dropped balls.
- That consistent excellence justifies higher rates and supports retention, and it’s what CrewHu is built to amplify.
Want to protect your margins while raising your rates? Build a crew that makes premium service your standard.
That’s not just a pricing strategy. That’s a growth strategy.
When your team is recognized, aligned, and motivated, they deliver the kind of service that clients happily pay more for.
Want to dig deeper into how employee engagement fuels profitability?
Check out these resources:
- 5 Ways to Increase Employee Engagement and Sales
- Maximizing Earnings: Innovative EBITDA Strategies for Managed Service Providers
- 5 Key Focuses for Continued MSP Growth
And if you’re ready to see how CrewHu makes it easy to automate recognition, gamify performance, and grow profitably...
Book your personalized demo here and let’s build a crew that makes premium pricing your new normal.
Topics: MSPs
