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pricing your MSP Services is probably the hardest thing that you can actually do when it comes to your business because if you do a great job you make a lot of this but if you do a bad job you could lose a lot of this in this video I'm going to break down exactly how you need to price your services so we could put more cash in your pocket every single month and I even include an incredible free tool in this video my name is Harrison Baron from growth generators. we help MS PS with sales training and marketing before I get into today's video I do have to mention two quick things as always number one there is a master class down below actually specifically teaching you how to use this tool that I'm about to show you so you can go through and it's a much much more in-depth this is a YouTube video I try to keep them light I try to keep them brief but if you really want the full training on how to use this so you can make way more money there will be a link down below it'll be the first link down there number two come hang out with us in the Discord we are well past 300 members and it is crazy to think that just not that long ago it was about 200 and it is a super active and thriving group come hang out with us we'd love to have you so let's talk about MSP pricing before we get actually into the tool because it is a really really useful tool so MSP pricing takes into a lot all around because we have as an MSP a lot of moving parts we have technicians which is going to be labor we have software which is kind of a fixed cost kind of not a fixed cost but there's also variables we're going on site sometimes there might be traffic there's a lot of liabilities there's taxes that get involved and depending on what kind of MSP you actually run there's more and more and more softwares and subscriptions that you have to worry about and whether or not you use them it's still going to cost you cash every single month but how do you actually come up with the equation that puts money in your pocket and removes that fear of am I as profitable as I should be or am I making as much money as I possibly can well this is a really hard thing to think about because when you think about it right you take all of your expenses you take your rmm your PSA your CRM maybe your cyber security stuff your AV your backup your Office 365 or Google workspace subscription and you kind of Stack it all up and you look at that number and think okay well that number comes out to be I don't know let's make it a 45 or 50 bucks nice easy round number $50 a month but how do I actually make money on that how do I factor in my employees time how do I factor in how many tickets they're actually closing well this is where things get a little confusing because you know that you have to make at least $50 per computer to cover your no matter matter what costs right you're we'll call this overhead but what about the other stuff how do about how do you actually put some profit in your pocket well there's this interesting kind of equation that you have to think about right you want to make at least 50 because you got to cover your cost you got to make some kind of profit to cover your labor to make some extra money on there and to put some money in your own pocket as well as paying for your employees now we've all probably heard the term well you got to charge enough to make a living or you got to you're not charging enough or you're probably not charging enough and that's because people don't actually know their numbers that's the hard part about it is knowing your numbers we can all make an Excel sheet and we know how much that's actually going to cost but a lot of us we don't actually know what those numbers actually look like now A good rule of thumb is you have to have all those softwares right off the bat but you also need to know that your technician depending on what stage of the process you're in or how big of an MSP you are technicians are typically going to work on every computer about 2 to 4 hours per month seems to be the going rate and what my experience has been per computer so if you have you know 10 computers figure that a technician is going to be working between 20 and 40 hours per month on those 10 computers now over time and as things get better and better that number is going to come down month after month after month but that's just a good ballpark everybody's case is completely different and on top of that you have variable costs where you might be backing up more and more and more storage what is that actually look like for the business and how do you actually build that so we're going to jump in here and I just want to show you the quick little calculator but these are all variables that you have to go through and then on top of that you're at bat and you're ready to make your pitch and you're ready to close this deal well maybe it's 50 computers do you need to offer a discount to get the deal now I'm not a huge fan of discounting but in some cases to get the deal done you might have to have a little big bit of wiggle room and that's why having your costs and having a calculator really comes into play it really allows you to thrive and succeed when push comes to shove but on top of that there's also costs that we don't factor in not only do we have all of our softwares to do the job but we have softwares that help us run the business we have QuickBooks we have zero we might even have to go hire other people or an accounting firm of that sort so that way we are getting we're paying people appropriately but also money isn't just leaking out of the cracks of the business these are all really really big factors to take into consideration so I'm going to just do a quick little overview of this calculator like I said if you really want the full in-depth guide of how msps are really messing up their pricing or you want to play with this calculator so you can get your numbers dialed in there will be a link down below you're going just go through the master class it'll be right there it'll be hey put in your information you'll get the calculator and then on top of that not only will you get the calculator you'll also get the training that comes with it cuz I do I want to teach you how to become insanely profitable because this is easily the number one killer of msps so we have the MSP simple pricing calculator now we already have a significantly more advanced one but that is for another day but this is really to get you to get your numbers kind of dialed in so we've built an entire program here that you can go through yes it's through Google and that's how it was built so it's nice and easy to share for everybody but we have the MSP pricing calculator now there's two areas here that we have to think about we have onetime Services which is going to be those one-offs that new computer setup computer tuneup setup whatever it might be but we also have those month monthly fixed costs that seem to just eat away at our revenue and we have to make sure that that is dialed in now now I spoiler alert before I get into this is before I go any further you have to know your numbers so before you dive into this pricing calculator I want you to hit pause right here or watch the rest of the video but you have to go out and actually write down your numbers go through and I just dropped my piece of paper here but you want to go through and you want to start tallying up and writing down all of your subscriptions whether that's in Google Sheets somewhere and how much you're paying every single single month because without that knowledge beforehand this calculator is not going to give you the most accurate information in the data world it's garbage in garbage out gold in diamonds out you the better information you can get in the beginning the better information you're going to get out which is going to help you make more money but we have in here and there's some fancy stuff that we've built in but you could go through and you can modify and see okay so server support maybe you charge $200 a month is it per PC or per user how many is there actually in here is it one okay great so per service we have one so $200 on a monthly basis are we setting up a config are we doing patching how much is that actually going to cost are we doing per PC or po per user is it per service and what is the number of those now rule of thumb with this calculator do not touch the orange boxes the orange boxes are the No No zones we don't mess with those and we even left open some areas here for your additional service services that you could go through and maybe we don't have it here which I'm sure we probably don't because there's hundreds of softwares out there that are fantastic for msps but you could start to go through here and say you know what I want to offer cloud services maybe cloud services are $25 right and we have per service right we're going to just call it I don't know maybe 10 it now knows that 25 * 10 is $250 and this is going to be your monthly bill but one thing that you have to to think about is while this is good and you can see how much that actually costs and you're going to be able to see your your pricing you're then going to be able to take it one step further and begin to say hey I need to know how many this is actually going to happen we have some cool stuff down here where we have number of PCS and number of users and it says the above two fields are for the Asis state of business you are quoting for it then creates a ratio of the number of users and PCs so you can see what it may look like for your scenario but that's really the key Secret Sauce in here and then maybe some money how you want to run it and good general rules of thumb based on your profitability but this tool helps you just see okay well great I have this much and we're charging per PC we're charging per user it grabs these numbers and builds you that algorithm additionally we also have that one-time services and having these and thinking about okay well what are we actually doing how are we actually doing it how do I actually come up with the numbers because most msps surprise surprise don't even know if they're going to charge per person or per computer sometimes businesses have way more people and sometimes they have way more computers well just because they have way more computers and way less people you still got to put the basics on those computers this calculator helps you figure out what those actual numbers are so when a customer says how much is this going to cost me you can go back to your office and you're going to have your plans and you're going to be able to adjust this for your plans and sometimes you're going to have different parts in your plans where you know industry specific programs maybe you're a reseller for that help Des support what it's going to cost on average per company maybe it's $10 $20 per user or $50 per user on-site support remote 24/7 break fix anything like that that you can have in here that you might include on a monthly bill you can then see okay great some people might be over the moon to have $25 per charge at a rate of 10 per service and you can even write in here per user we could write in yes and it'll automatically calculate that into the final number this is the magic of having a really high quality calculator that you can use like I said there is a link down below it'll it will be a master class you're going to get it and you're going to get the full training on it but that's the best part about it is there's no more guessing there's no more well I could do this no you can see directly your hard costs associated with it and how much money you could be making both on a monthly basis and on a one-time service because it's just simply an algorithm but you have to really know in order to succeed so that's why we built this whole thing for you I wanted to build a tool that people are going to go absolutely crazy for because it really brings you and brings to light how much money things cost how much money you can actually make and even if you had to budge what would that actually look like with a 50 75 maybe even 100% margin that way you can put more of this in your pocket because in all reality we all go into business to make money we don't do it for charity if we were going to do that we would all start a non for-profit so having that removing the fear of I'm not charging enough is key and why we built this tool I encourage you to go download it it's not that complicated to use if you don't go through the training with it associate or associated with it that's totally up to you but go through figure out your fixed cost maybe there is no server right maybe there's no server maybe it is $25 per user maybe you have Google workspace and maybe that's $20 per you can then tweak and modify and you have to say hey is this going to be as a per PC we can write yes and then boom you get the number of right and maybe we're going to fire off and it's kind of foolproof where hey it knows that you've put in one or the other so it's not going to say yeah we're going to do 20 you know $20 per computer per PC and per user that wouldn't make sense we really want them to make sure that it was a foolproof design to make your life tremendously easy and how much those numbers actually look like what your reoccurring revenue is going to be and how many PCs it could actually be Time and Time and Time again so I encourage you to figure out your pricing and like I said go build out that XL sheet figure out what your costs are and then work forward because you never want to be up at bat for a deal and say I don't know if this is actually going to make me money you can see this in advance and know and rest easy saying you know what these numbers work out well for me and I've included my labor in here I know I'm going to be able to kill it with this deal and if I do have to wiggle a little bit to get the deal done you can do that that's the best part so I encourage you really take your pricing seriously and this is just a simple pricing calculator you can price per user you can price per per PC you could do value based pricing in the value that you actually provide there's three tiers of it and whatever works for you I'm going to be covering that in a future video if you've made it this far you're going to want to hit the like button you're going to want to hit the Subscribe button little notification Bell I love the heck out of you guys I appreciate you and I see you guys on the next one love you guys bye