Chris WiserSerial Entrepreneur and MSP Growth Catalyst

Why Most MSPs FAIL at Pricing Their Services?

Name: Why Most MSPs FAIL at Pricing Their Services?
Uploaded: 2025-03-26T16:00:29Z
Channel: Chris Wiser
Description: Speaker (Chris Wiser) argues MSPs must price services to be a going concern—covering hires, marketing, and automation investment. He contrasts low-margin…

26 Mar 2025

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Speaker (Chris Wiser) argues MSPs must price services to be a going concern—covering hires, marketing, and automation investment. He contrasts low-margin hardware/software-only sales (~16% gross margin) with high-margin bundled offerings (hardware + software + service yielding ~80% gross margin), and states that pricing choices determine which business model an MSP operates in.

Questions this video answers

About 16%.

About 80%.

Have got to price my service at a level where I'm a going concern. I've got to price my service at a level where I'm making enough profit so I can hire the right people, so I can do the marketing that I need to do, so that I can. I can invest in scripts and doing things to improve my automations. Right? If you cut it too thin, you might as well be an Amazon reseller. Right? And if you're only selling hardware and software, then you've decided, for whatever reason, that you want to be in a world where you're only making, at best, maybe say, 16%. But when you take hardware and software and service, and you add it together in a beautiful bundle, you're now in an 80% gross margin business. So which kind of business do you want to be in? And it all starts with how you price your service.