New MSP Pricing Model: Your Stress Level Per Dollar
Should managed services providers (MSPs) offer per-device pricing or per-user pricing? The new answer could be Stress Per Dollar pricing.
![New MSP Pricing Model: Your Stress Level Per Dollar New MSP Pricing Model: Your Stress Level Per Dollar](https://eu-images.contentstack.com/v3/assets/blt10e444bce2d36aa8/blt91209946367d6ee3/652674d34ae08048683a7fe0/phones_0.jpg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
Managed services provider (MSP) pricing models certainly vary from one company to another. Some MSPs focus on per-device pricing. Others are shifting to per-user pricing. TruMethods recommends “Chocolate Cake” pricing. But the latest trend? It’s called “Stress Per Dollar” (aka Headache Per Dollar) pricing. Here’s how it works…
Let’s say you’re bidding on a managed services contract involving Acme company. If Acme will generate:
Low revenue and low stress for you, that’s business worth pursuing.
High revenue/high margin/high stress for you, that’s business worth pursuing.
Low-revenue/low margin for you that causes a lot of stress, that’s not worth taking.
Special thanks to Dave Cava, COO and co-founder of Proactive Technologies, an MSP in New York that supports hedge fund companies. Cava and I had a low-stress/low-cost/high-value breakfast this morning. When he mentioned the “Stress Per Dollar” concept, I knew I had to share it with MSPmentor’s readers.
Yes, you already knew the basics about high-stress customers you likely need to fire. But when Cava boiled it down to the “Stress Per Dollar” sound bite, I smiled and said MSPs will love it.
About the Author(s)
You May Also Like