Most MSPs ‘Leave Money on the Table’

More than half of MSPs are undercharging for their services, while the most profitable ones adhere to strict agreements defining levels of service — including quicker response time.

Atera's Gil PekelmanThat’s according to Atera’s Benchmark, its business intelligence platform, which analyzes and measures key performance indicators for MSPs. The company provides an all-in-one SaaS for MSPs.

Gil Pekelman, Atera’s CEO, tells Channel Partners the data his company collects is anonymous, from hundreds of participating Atera customers.

“We believe that by revealing this data, we are creating much-needed awareness for MSPs around what to charge for their services,” he said. “We are trying to help MSPs understand the right price points — from the support they offer to their technical expertise. We don’t want to see them leave money on the table. Our data reveals that MSPs can command a higher price by focusing a little more on selling and around specific service improvements.”{ad}

According to the Benchmark, 45 percent of MSPs charge between $45 and $99 per hour, while 50 percent charge between $100 and $155. The remaining 5 percent charge between $200 and $250 because they are offering an added expertise or special service.

“Putting service-level agreements (SLAs) in place with faster response times and measuring mechanisms to track whether or not you are meeting those SLAs is important,” Pekelman said. “In a survey we conducted with Getapp, we discovered that one of the two most important issues for SMBs is an MSP’s response time.”

Although SLA commitment is measured hourly, the actual first response time is less than an hour for 58 percent of MSPs. Eighty-eight percent of tickets are worked on in before an hour elapses.

MSPs that respond to customer tickets within 20 minutes see the most success and return business. Those that charge more reply 43 percent faster to tickets than those that charge less.

When it comes to customer service, customer satisfaction counts the most, according to Atera. Eighty-nine percent of customers said they stopped doing business with a company because of poor customer support.

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