Small Business Brief

Technology & Software

A Managed IT Services Pricing Guide: This is How Much it Costs

With so much of today’s business relying on technology, every business needs an IT person to help manage all of it. Having a highschooler run things and recommend the best products will only last up to a certain point.

Eventually, everyone has to get some extra support. Before you hunt down an IT provider, you should find out your budget, come up with an IT strategy, and figure out how much equipment you have.

All of this will smooth things over when you start looking into managed IT services pricing and hunt down the keys to the next big step in growing a business.

What Are Managed IT Services

Managed IT services entail an IT business consistently managing technology owned by the business. This means that if something breaks or isn’t functioning as intended, the business has someone they can call to come to fix it as soon as possible.

The benefits of having this type of service versus a non-managed IT service is that managed businesses are more highly prioritized, get reduced pricing, and have better-maintained equipment. 

This type of system keeps everything consistent for the business owner and is a huge benefit to the IT business you hire because they know how everything works the moment they get there. This saves the IT person and the business time and money when repairs are made. 

The less time an IT person takes to learn a business’s network, the less they’ll charge. There are many types of managed It services, and you’ll need to discuss what’s covered in the agreement between you and the IT business you hire.

Managed IT services typically cover:

  • User Support
  • Network Management
  • Labor
  • Email Management
  • Malware and Virus prevention
  • End-User Training
  • Hardware/Software Purchases
  • Miscellaneous Jobs 

Having a managed IT service provider in place makes it so that you won’t have to worry about keeping the technology in your business running. It removes stress and allows you to just make a phone call to solve your technological issues.

With the right business computer support, the benefits are vast. With so many benefits though, the next question everyone asks is, “How much is it going to cost?”

What Are Managed IT Services Pricings

Managed IT services pricings can vary greatly depending on where you’re located and which managed service provider (MSP) you’re working with. A lot of MSPs have hard limits, but some are flexible. This means that you should run your budget and figure out how much you can afford.

There are a few ways that businesses charge for managed services. The most common ways businesses charge are on a per-user basis, per-device basis or flat fees depending on the service. 

Per-User Pricing

With the per-user and per-device options, it is typically a fee per month that the business charges. This way, you aren’t charged for anything when work is actually done unless it’s hardware. 

The charge may be between $50 and $300 per-user. The price varies the greatest due to user volume typically. The more users you have, the less you’re charged per-user.

Another benefit to the per-user method is that you will know exactly how much your IT bill will go up each time you add an employee or go down when you lose one. It makes budgeting the easiest when compared to other methods.

Per-Device Pricing

When it comes to charges for each device, the provider will usually have an exact price for each type of device. Routers, desktops, phone systems, software, and other devices will all total up to a set price per month or year.

When it comes to a per device system of charging, the pricing is around the same with the range being $100 to $250 per month. When charged with this method, your business can grow and the price won’t go up quite as much with a per-user method. 

This keeps the pricing stable so that you can budget better for the future. Like with the per-user method, you can also predict exactly how much your bill will go up when you add a new employee or expand to a new building.

Flat Fee Charges

The final method of flat fee charges can have a lot of variances depending on what breaks and where you’re located in the world. This billing type is very reasonable if you’re running a small business of less than three to five employees.

The reason you’ll save money with flat fees is that you will sign a document saying you will always reach out to a specific MSP when things go wrong. 

For this commitment, the provider gives your business discounts on services they would typically provide. Most often, this type of billing results in $25 to $500 per month depending on what breaks during the month.

The reason you’d choose this billing type, though, is that if nothing breaks, you won’t be charged more than a minimum charge. This minimum charge is very small at $25 to $50, per month.

Look For Multiple Managed Service Providers

When it comes to managed IT services pricing, there is no one size fits all. Luckily there is a standard process where different managed service providers will bid for your business.

This creates a system where different businesses are competing for your business and you can get the best price! This system also gives you the chance to learn about how your future IT provider handles business.

So, whether you are charged per-user, per-device, or through flat fees, you can find an IT provider you can trust who can provide stellar support.

If you are looking for more information, feel free to look at our other articles and get the answers you need for your small business!