Setting a Fair Price for Managed IT Services

As different companies start to look at managed IT services, they will notice that the majority of providers offer a long list of services at a relatively fair price. But, what exactly is a fair price? When compared to regular business operations, a fair price generally means an affordable price that is still able to generate a big enough profit for the managed IT services provider. In addition, the term “fair price” also typically means that a managed IT services company will not take advantage of another business by price gouging.

What is a Fair Price?

This leads to the very important questions of, what exactly is a fair price for managed IT services and how is the price determined? Typically, a frequently used pricing model is determined by the amount of users or devices that a managed IT service provider will be maintaining. This particular type of contract will generally set a weekly or monthly fixed price for the specific amount of users, software components and hardware services within a company’s IT infrastructure. For example, a client would set a specific price per network user or the amount of computers that are being managed. If a new employee is hired, the client will already know how much a managed IT service provider will charge for the new user maintenance. By having an understanding of the exact price for each service, companies are able to maintain their costs and realistically set operational budgets.
In order to determine a fair price for your company’s managed IT services, you will need to compare rates with several different providers. This will help you get a better understanding of what specific services generally cost and what pricing you should expect. It’s important to remember that the managed IT service providers with the lowest prices don’t always offer the best information technology solutions. Many times, less experienced providers will offer a lower price in order to receive the work. In fact, lower pricing is often a good indicator that a managed IT service provider is not able to offer all of the exact solutions that your company may require. When you are making the final decision regarding your outsourced IT solutions, you need to select a contract that is ideal for both parties. The last thing that you want to do is get locked into a contract that does not incorporate fair pricing for your managed IT services.