The Pros and Cons of a Fixed-Rate Plan With Your MSP

fixed-rate plan

One of the first questions that any small business owner will ask is how much it costs to have a Managed Service Provider. The cost of someone driving your IT services varies depending on the number of risk assets available. The more risk to cover, the bigger your demands will be. 

Suppose you wondered about general pricing guidelines when looking for someone to cover your tech needs. In that case, you should consider the pros and cons of what goes into having a premier IT service. What kind of rates are you willing to pay? Here’s what you need to know.

All-Inclusive Fixed Fee

A fixed-rate is pretty self-explanatory. Fixed-rate means the company determines a set fee each month. The price depends on how many people use technology within the company and out-of-pocket costs. 

Most MSP contracts will land at $200 a person for business tech coverage. When you have this kind of model to work with, you’re going to find out that when fixed fees happen, your provider doesn’t get paid extra for after-hours work like overtime.

Benefits of Fixed-Rate Plans

However, all-inclusive fixed fees have the strategic capability to ensure that there are no bumps in the road with any technology. Partnering with solid Cloud, Cyber Security and Web Services is crucial. Here are more considerations for taking on a fixed-rate plan:

  •  bug fixes
  •  updates
  •  user setup that doesn’t involve you–like walking into an already furnished apartment.
  •  easy user termination
  •  24/7 365 support year-round
  •  backups and Cloud management
  •  vendor management
  •  remote and on-site support
  •  a strategic plan that works
Other Types of IT Service Provider Plans

Sometimes an effective business model means taking it wholesale. Also known as a retainer, this is a plan that allows a company to purchase a set of hours, typically at a reduced rate. 

While this contract is hourly, you must look out for after expenses. Like every other option that isn’t a fixed-rate plan, no preventive maintenance means no room to improve. 

When your monthly fees stay the same, providers can provide the type of service you need while giving them the ability to invest in people tools and services to help your business stay at the forefront of cyber security