The Ultimate Guide to Small Business Managed IT Service Pricing

With technology playing a significant role in almost every aspect of modern-day operations, the need for reliable and efficient IT support is more apparent than ever.

But how much do managed IT services cost ?

The cost of hiring a full-time in-house IT department can be steep, making managed IT services an attractive alternative. Over 92% of G2000 companies now rely on IT outsourcing as a way to reduce costs while streamlining their day-to-day IT operations.

And when it comes to managed IT services pricing , there are several common structures to be aware of, including hourly billing, per-device, fixed-fee, and a per-user basis .

Understanding these managed IT pricing models can help your business make informed decisions about which provider to choose and which pricing structure best fits your needs.

In this blog, we’ll ask the question of “ how much do managed IT services cost ?” while investigating each of the common managed IT pricing methods with additional information provided on the following:

• Managed IT services calculator
• Managed IT services ROI calculator
• Managed IT services price list
• How to choose an IT provider who fits your pricing needs

How Much Do Managed IT Services Cost on Average?

Determining managed IT costs and managed IT services rates for small businesses can vary widely depending on several factors, including:

• Size of the business
• Complexity of IT infrastructure
• Regulations your business requires
• Depth of Cyber security needs, beyond the necessary basics
• Level of support required
• Number of users

However, according to a survey conducted by Clutch in 2021 , the median cost of managed IT services for small businesses in the United States is approximately $150 per user per month .

This pricing model typically includes a range of IT services, such as remote support , network monitoring and maintenance, and security services.

It’s important to note that this is just an average cost, and you should expect some variation depending on your specific needs and the service provider you choose and your specific type of business your in, coupled with your exact needs / requirements.

Common Managed IT Pricing Methods

Now that we’ve established an average number for managed IT services pricing , let’s take a look at some of the pricing models that account for these managed IT costs .

1. Hourly Billing

Hourly billing is the most straightforward pricing model – but not necessarily the best option.

In this model, the service provider charges fixed hourly rate s for their managed IT price list , which can range from hardware installations to software updates and general IT support.

While this managed IT pricing model may seem attractive, it can be challenging to budget or know what you can expect to pay later down the line. This is because hourly billing can quickly add up, especially if there is a significant issue that requires extensive work to resolve. This model encourages repeat issues, no documentation, no incentive or accountability to fix issues the first time.

2. Per-Device Pricing

Another pricing model is per-device pricing. In this structure, the service provider charges a flat fee for each device they manage, such as employee desktop computers, laptops, tablets, and mobile devices .

This managed service pricing model provides predictable monthly fee s that are easy to budget for. However, it may not be the most cost-effective option if you have a large number of devices, as costs can add up quickly.

This model also does not ensure comprehensive coverage for your business and low accountability for your business.  The IT provider can blame, we were not managing that device, only after the issue has come forward and cost your business time, money and potentially data loss.

3. Tiered Pricing

Tiered pricing is a more complex pricing structure that is based on the level of service your business requires. The service provider offers different levels of service, with each level having a set price.   Good – Better – Best, you pick.

Higher levels of service come with more advanced support and features, such as faster response times and more extensive monitoring.

This pricing model can be an excellent option for businesses like yours who may have varying levels of IT support needs. However, it may be challenging to know which tier is best for a specific business, and costs can quickly escalate if the wrong tier is selected.

This model is dangerous, isn’t all of your technology important and should be working at 100%?

4. Monthly Fixed-Fee Per User Pricing

Monthly fixed-fee per user pricing is a pricing structure that has become increasingly popular in recent years.

This pricing model offers a set fee per user per month , regardless of the number of devices they use or the level of support they require. Additionally, this model offers a high level of predictability and cost-effectiveness, making it an attractive option for businesses of all sizes.

Who needs a managed IT services calculator when you have experts available to do it for you? Receive your quote free of charge for SynchroNet’s managed IT services rates now!

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Benefits of Monthly Fixed-Fee Per User Pricing: The SynchroNet Way

Here are a few of the main benefits of the fixed-fee, per use pricing for an MSP engagement:

Predictability

One of the significant benefits of monthly fixed-fee per user pricing is that it offers a high level of predictability. SMBs like yours can easily budget for IT support costs, as you know exactly what you will be paying each month.

This predictability allows you to allocate resources more effectively and plan for future growth.

Cost-Efficiency

Another benefit of monthly fixed-fee per user pricing is that it is cost-effective. Rather than paying for each device or each hour of service, you pay a set fee per user. –  It is based on your specific business complexity, users, data and regulations of your business.

This pricing model allows you to scale your IT support as you grow, without incurring significant costs.

Extremely accountable model for your business and IT provider, no surprises.

Flexibility

Monthly fixed-fee per user pricing also offers a high level of flexibility. Service providers can tailor their support at no additional cost to meet your unique needs while remaining within your negotiated price range.

This flexibility allows you to receive the support you need, without paying for services you do not require.

To get a better understanding of your IT pricing, you can easily do it with this managed IT services ROI calculator equation. T he formula is straightforward: ROI = net gain/cost .

Why Choose SynchroNet?

The managed IT market is growing fast , with a 12.8% CAGR between 2023 – 2030.

Unlike other managed service providers (MSPS ) on the market, SynchroNet takes the time to understand your unique IT needs and deliver them in a way that makes sense for your company.

With fixed-fee per-user pricing, you’ll have the option to scale up or down as needed with our a-la-carte services model that enables you to pick and choose from the services you need.

Our competitive pricing and unmatched IT services can help you boost your business! Receive your free quote now.