NexusTek Simplifies Pricing for SMBs

NexusTek, the Channel Futures 2018 MSP of the Year, has revamped its pricing plans with an eye on improving customer experience and internal efficiency.

This month, NexusTek unveiled four new pricing plans, each with specific level of services and fixed-monthly, per-user pricing. The idea behind the new models is simple: help customers get the most for their IT dollars while providing NexusTek a reasonable foundation for managing its costs nationwide. The latter is especially important given the history of the company.

NexusTek was formed through as many as eight different mergers and acquisitions. While the deals provided NexusTek greater geographical reach and improved vertical market expertise, they created a “spaghetti” of pricing plans and contracts for the company. For the last several months, CTO Randy Nieves has worked to rationalize and standardize the way his company engages customers.

NexusTek’s Randy Nieves

“I had two goals when I started,” says Nieves. “One was to launch something that is unified that combines best of what everyone was offering and, two, make sure our plans were mature and modern enough to help customers with security, compliance and other technologies and needs that are evolving quickly.”

The new pricing plans “offer industry-leading technology, end-to-end IT management and predictable pricing that provide companies across the country with affordable, scalable enterprise-grade services” in the following areas: around-the-clock proactive support, help desk, backup, disaster recovery, dedicated engineering, cybersecurity, network services and monitoring.

The new NexusTek tiered plans break down thusly:

The Denver-based company is the latest in a long line of MSP organizations to align pricing to new market realities. In recent years, MSPs including Arizona-based Trapp Technology have worked to simplify options to make live easier for end customers. But opinions differ over what makes the most sense today. Some MSPs insist a single, “all-you-can-eat (AYCE)” plan yields the highest returns. Others say tier-plans do. (For more on this debate, check out this recent conversation on MSP pricing on Reddit.)

In practice, customer pricing and go-to-market MSP models vary widely. Consider a new report on the changing world of MSP pricing strategies from Continuum, a developer of an open-source MSP management platform. Among other things, Continuum found the following:

“Today, the IT channel has no unified standard for pricing managed IT services, which presents an opportunity for MSPs to afford a degree of flexibility and creativity in their pricing model to offer services as they see fit with an achievable profit margin. However, along with this opportunity comes risk; there is substantial research that goes into developing an appropriate pricing model, and the success of an MSP business relies greatly on its profitability.”