Syncro released their MSP Pricing Plans & Models Report. Key findings include that 39% of MSPs’ revenue comes from monthly contracts, 15% accept crypto as payment, 63% raised prices in the last 12 months, and many struggle with creating a pricing strategy.
The MSP space continues to grow, with over half of the organizations surveyed making more than $10M in revenue in 2022 and nearly half of the respondents anticipating additional revenue growth in 2023.
Average prices per method – $151 per user, $99 per endpoint, $105 per network equipment, and $110 per hour.
The report highlights that the bigger the company, the bigger the pricing selection. Economic factors such as inflation, rising labor costs, and the general cost of doing business were the leading reasons why most respondents raised their prices in 2022, emphasizing the impact of socioeconomic factors on pricing strategies.
Surprisingly, when asked how their organization came up with its pricing strategy, most respondents said they didn’t know. Only 7% said their strategy was backed by research, analysis, strategy, and planning, indicating a lack of clear strategic pricing methodology and planning among a significant portion of MSPs.
The report highlights that some managed service providers (MSPs) are beginning to accept cryptocurrency as a payment method. This is an unexpected trend, and I’d want to know how many are actually being paid in crypto. Notably, smaller providers – less than 25 employees – but not younger – are between 5 and 25 years old. I’m skeptical on this one.
The fact that 39% of MSPs’ revenue comes from monthly contracts indicates a solid lean towards predictable, recurring revenue models. Nothing new here.
The most striking revelation is the lack of strategic planning in pricing strategies among MSPs. With only 7% stating their pricing strategy is backed by research, analysis, and planning, it suggests a gap in strategic business practices in the sector. This could be a critical area for MSPs to address to ensure long-term sustainability and growth. I don’t mind saying I hope this show helps with this effort.
And for those interested… an AI agent helped me with the analysis. It caught both the crypto detail and the 7% strategy one.
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