{"id":1100,"date":"2026-11-03T07:03:52","date_gmt":"2026-11-03T12:03:52","guid":{"rendered":"https:\/\/vight.ai\/blog\/msp-pricing-models\/"},"modified":"2026-11-03T07:03:52","modified_gmt":"2026-11-03T12:03:52","slug":"msp-pricing-models","status":"publish","type":"post","link":"https:\/\/vight.ai\/blog\/msp-pricing-models\/","title":{"rendered":"MSP Pricing Models: How to Pick the Unit That Tracks Your Work"},"content":{"rendered":"<p>Picture a dental group that signs a per-user agreement for 22 staff. Six months later you are supporting 22 people, 40 workstations, four imaging PCs nobody logs into, a shared front-desk login, two practice management servers and a phone system. The invoice still says 22. Now picture a law firm on a per-device agreement with 15 laptops and one managing partner who calls about his personal iPad, his home printer and his family&#039;s email. None of that is a device on the contract, and all of it lands on your senior tech.<\/p>\n<p>Both clients are on a reasonable MSP pricing model. Both can lose you money for the same reason: the unit on the invoice does not track the thing that actually drives your labor for that client.<\/p>\n<p>That is the point most guides to MSP pricing models skip. They list the models, describe the pros and cons, and tell you to &quot;pick what fits your business.&quot; This post takes a different position: <strong>the pricing model is a bet on what causes your work, and you can check that bet with data you already have in your PSA.<\/strong> The unit you bill on matters less than whether it moves when your workload moves, and whether your contract says what &quot;unlimited&quot; does not include.<\/p>\n<h2>What are the main MSP pricing models?<\/h2>\n<p>There are eight models in common use. Most MSPs run one as the primary and bolt one or two others on for exceptions.<\/p>\n\n<figure class=\"wp-block-table\"><table><tr>\n<th>Model<\/th>\n<th>How the client pays<\/th>\n<th>What your labor actually tracks<\/th>\n<th>Where it breaks<\/th>\n<\/tr>\n<tr>\n<td><strong>Monitoring-only<\/strong><\/td>\n<td>A small fee per endpoint for RMM alerting and patching; fixes billed hourly<\/td>\n<td>Alerts and patch failures<\/td>\n<td>Clients expect &quot;you&#039;re watching it&quot; to mean &quot;you&#039;re fixing it&quot;<\/td>\n<\/tr>\n<tr>\n<td><strong>Per-device<\/strong><\/td>\n<td>A rate per workstation, server, network device<\/td>\n<td>Endpoint count<\/td>\n<td>People who generate work without a device on the contract<\/td>\n<\/tr>\n<tr>\n<td><strong>Per-user<\/strong><\/td>\n<td>A rate per covered person, usually including their devices<\/td>\n<td>Headcount<\/td>\n<td>Device sprawl, shared logins, kiosks and servers that no user &quot;owns&quot;<\/td>\n<\/tr>\n<tr>\n<td><strong>Tiered (good\/better\/best)<\/strong><\/td>\n<td>A per-user or per-device rate that changes with the package<\/td>\n<td>Scope of responsibility<\/td>\n<td>Clients on a low tier getting high-tier service because nobody says no<\/td>\n<\/tr>\n<tr>\n<td><strong>All-you-can-eat (flat fee)<\/strong><\/td>\n<td>One fixed monthly fee for a defined environment<\/td>\n<td>Whatever the client throws at you<\/td>\n<td>Growth, projects and after-hours work absorbed without a price change<\/td>\n<\/tr>\n<tr>\n<td><strong>\u00c0 la carte<\/strong><\/td>\n<td>Each service priced separately (backup, security, help desk)<\/td>\n<td>Each service line<\/td>\n<td>Long invoices, and gaps between services that nobody owns<\/td>\n<\/tr>\n<tr>\n<td><strong>Block hours \/ retainer<\/strong><\/td>\n<td>Prepaid hours drawn down each month<\/td>\n<td>Hours worked<\/td>\n<td>Only as good as your time entries; unlogged work burns nothing<\/td>\n<\/tr>\n<tr>\n<td><strong>Break-fix<\/strong><\/td>\n<td>Hourly, as work happens<\/td>\n<td>Hours worked<\/td>\n<td>Revenue swings, and no incentive to prevent problems<\/td>\n<\/tr>\n<\/table><\/figure>\n<p>Value-based pricing, sometimes listed as a ninth, is less a model than a way of setting the number: you price on what downtime costs the client rather than what the work costs you, then bill it through one of the units above.<\/p>\n<p>If you want typical price ranges for each model, we covered those in <a href=\"https:\/\/vight.ai\/blog\/how-much-do-managed-service-providers-charge\/\">how much managed service providers charge<\/a>. This post is about choosing the model, not the rate.<\/p>\n<h2>Per-user vs per-device: which should an MSP use?<\/h2>\n<p>Per-user is the model you will see recommended most often for fully managed agreements, for good reasons. Headcount is easy for the client to understand, it maps to how Microsoft 365 is licensed, and it stops you from counting every phone and tablet. Per-device is still common for monitoring-only and for clients with a lot of infrastructure relative to staff.<\/p>\n<p>The usual advice is &quot;per-user if people have multiple devices, per-device if they don&#039;t.&quot; That is a reasonable rule of thumb, but you do not have to guess. Your PSA already holds the answer.<\/p>\n<h3>The test: which unit predicts your hours?<\/h3>\n<p>Pull 6 to 12 months of time entries for your agreement clients. For each client, write down three numbers: hours logged, covered users and managed devices (from your RMM). Then compute two ratios per client:<\/p>\n<ul>\n<li><strong>Hours per user per month<\/strong><\/li>\n<li><strong>Hours per device per month<\/strong><\/li>\n<\/ul>\n<p>Now look at the spread of each ratio across clients. Whichever ratio is more consistent from client to client is the unit that actually tracks your work, because it means &quot;more of that unit&quot; reliably means &quot;more hours.&quot; If hours per user sits in a fairly tight band across your book but hours per device is all over the place, per-user is the right unit and your price per user can be set from that band. If it is the other way around, per-device is doing a better job.<\/p>\n<p>You will usually find a few clients that sit far outside the band on both ratios. Those are not a pricing model problem. They are a scope problem (a line-of-business app, a compliance requirement, a heavy user) and they need a different tier or an add-on, not a different unit.<\/p>\n<p>A spreadsheet is enough for this. You do not need a BI tool. You do need the clients grouped by the same service tier, or you will be comparing a monitoring-only client with a fully managed one.<\/p>\n<h3>Why the test often lies<\/h3>\n<p>The test only works if the hours are real. The work that goes missing from time entries is not random: it is the short, interrupt-driven work that happens on the phone. The two-minute password reset on a call, the callback to a voicemail, the &quot;while I have you&quot; question tacked onto another ticket. We went through where that time disappears in <a href=\"https:\/\/vight.ai\/blog\/msp-time-tracking\/\">MSP time tracking: the leak is at the phone<\/a>.<\/p>\n<p>Clients with a lot of users who call the main line generate a lot of that unlogged work. So if your time data is missing phone work, hours per user will look lower and more uniform than it really is, and the heaviest-calling clients will look like your cheapest to serve. As we showed in <a href=\"https:\/\/vight.ai\/blog\/msp-profit-margins\/\">MSP profit margins<\/a>, that is exactly how a demanding client ends up near the top of a margin report.<\/p>\n<p>Before you trust the ratios, cross-check a few clients: compare inbound call volume from your phone system&#039;s call log with the tickets and time entries in your PSA for the same month. If a client made a lot of calls and has few time entries, fix capture before you change your pricing model.<\/p>\n<h2>What &quot;all-you-can-eat&quot; should not include<\/h2>\n<p>All-you-can-eat pricing is not a separate unit. It is a risk transfer: the client pays a fixed fee and you take on the risk that they need more work than you expected. That can be a good trade for a stable, well-standardized client. It is a bad one when the contract does not say where the buffet ends.<\/p>\n<p>Every guide says to &quot;set clear limits.&quot; Here is what those limits usually need to name:<\/p>\n<ul>\n<li><strong>Projects.<\/strong> Migrations, new office build-outs, server replacements, tenant-to-tenant moves. Define a project by something you can point to (a quote, a change request, more than a set number of hours on one outcome), not by &quot;large&quot; work.<\/li>\n<li><strong>Hardware and licensing.<\/strong> Resold at a margin, never inside the flat fee. Otherwise a laptop refresh looks like a great month and a bad year.<\/li>\n<li><strong>Onboarding and offboarding at scale.<\/strong> One new hire is support. Forty new hires from an acquisition is a project.<\/li>\n<li><strong>After-hours work.<\/strong> Say whether after-hours calls are included, billed at a multiplier, or included only for defined emergencies, and define the emergency. &quot;Ambiguous&quot; means &quot;free,&quot; and the 11 p.m. call is where that ambiguity gets expensive.<\/li>\n<li><strong>Out-of-environment work.<\/strong> Personal devices, home networks, family members, third-party vendor systems you do not manage.<\/li>\n<li><strong>Line-of-business applications.<\/strong> You can coordinate with the vendor. Whether you also administer the app is a scope decision that belongs in writing.<\/li>\n<li><strong>Security incidents.<\/strong> Monitoring and first response, yes. Full incident response and recovery after a breach is a different engagement for most MSPs, and the contract should say so.<\/li>\n<\/ul>\n<p>The same list applies to per-user and per-device agreements that are &quot;fully managed.&quot; Calling it per-user does not remove the buffet risk; it only changes how the fee grows.<\/p>\n<h2>Contract triggers: when the price has to change<\/h2>\n<p>Most MSP pricing goes stale for the same reason: the client&#039;s environment changes and the agreement does not. Inflation clauses and an annual review help, but they are calendar triggers. You also need event triggers written into the agreement:<\/p>\n<ol>\n<li><strong>Unit changes.<\/strong> How additions and removals are counted, from which source (the client&#039;s HR list, Microsoft 365 licenses, the RMM agent count) and when the new count takes effect. In ConnectWise PSA this is what agreement additions are for; Autotask handles it through units on recurring service contracts. Either way, someone has to own the monthly true-up, or the count drifts.<\/li>\n<li><strong>New sites.<\/strong> A second office is not just more users. It is another network, another ISP and often another phone system.<\/li>\n<li><strong>New regulated data.<\/strong> A client that starts handling health or payment data has taken on obligations you will be asked to help meet.<\/li>\n<li><strong>Workload outside the band.<\/strong> If a client&#039;s hours per user (or per device) stays well above your tier&#039;s band for a quarter, that is a trigger for a scope conversation, not just a note in the renewal file.<\/li>\n<\/ol>\n<p>The fourth trigger is the one almost nobody writes down, and it is the one that protects margin. It only works if the hours behind it are captured.<\/p>\n<h2>How to choose your MSP pricing model<\/h2>\n<p>A short decision path, assuming your time data is reasonably complete:<\/p>\n<ul>\n<li><strong>Mostly small offices, people-heavy, cloud-first, Microsoft 365 everywhere:<\/strong> per-user, with devices included up to a stated number per person.<\/li>\n<li><strong>Infrastructure-heavy clients (manufacturing floors, clinics with imaging stations, labs, shared kiosks):<\/strong> per-device, or per-user with a separate device rate for anything not assigned to a person.<\/li>\n<li><strong>Clients who mostly want you watching, with an internal IT person doing the fixing:<\/strong> monitoring-only or co-managed, with hourly or block-hours rates for escalations.<\/li>\n<li><strong>Very stable, standardized clients you know well:<\/strong> a flat fee can work, with the exclusions list above in the contract.<\/li>\n<li><strong>Any model:<\/strong> put after-hours, projects and out-of-environment work in writing as exceptions, and decide how phone work is captured before you start measuring.<\/li>\n<\/ul>\n<p>Tiers sit on top of whichever unit you pick. Use them to price responsibility (security operations, compliance help, vCIO time), not to make the sales page look fuller.<\/p>\n<p>Whatever you choose, review it with numbers rather than instinct. Service Leadership&#039;s Q2 2024 data, published by ConnectWise, put <a href=\"https:\/\/www.connectwise.com\/company\/press\/releases\/2024-08-06-service-leadership-q2-data-report\">average managed service gross margin at 46.2%<\/a>. That is a useful company-level yardstick. It says nothing about whether your per-user rate is right for a particular client. Only per-client hours and cost do.<\/p>\n<h2>Where AI fits (and where it doesn&#039;t)<\/h2>\n<p>AI will not pick your pricing model, set your rates or have the renewal conversation. What it can do is fix the data your pricing decisions depend on, starting with the phone.<\/p>\n<p>That is what <a href=\"https:\/\/vight.ai\">Vight<\/a> does. It pulls recorded calls from phone systems such as 3CX, Microsoft Teams, RingCentral, Zoom Phone and Dialpad, transcribes them, matches each call to the client and ticket, and posts a note and a time entry in ConnectWise PSA, Autotask, HaloPSA or Syncro. The short calls that never became time entries start showing up against the right client, which is what makes the hours-per-user test above worth running. The <a href=\"https:\/\/vight.ai\/phone-to-psa\">phone-to-PSA gap check<\/a> is a way to see how much call time is missing before you start.<\/p>\n<p>For ConnectWise shops, Vight&#039;s profitability view puts ConnectWise invoices next to logged time, with labor cost from each member&#039;s hourly cost, and shows margin by client and group. It is ConnectWise only today. For after-hours, Vight can answer calls with an AI voice agent that captures the caller&#039;s details and opens a ticket, and can summarize after-hours calls and escalate urgent ones to whoever is on call. That does not decide whether after-hours work is billable, but it does mean each after-hours call leaves a record you can bill or count.<\/p>\n<h2>FAQ<\/h2>\n<p><strong>What is the most common MSP pricing model?<\/strong><br>Per-user is the model most often recommended for fully managed services, usually with per-device or hourly rates used for exceptions. Monitoring-only and per-device models remain common for co-managed clients and infrastructure-heavy environments.<\/p>\n<p><strong>Is per-user or per-device pricing better for an MSP?<\/strong><br>Whichever unit better predicts your labor. Compute hours per user and hours per device for each agreement client over 6 to 12 months; the ratio that is more consistent across clients is the unit that tracks your work. Check that phone work is captured first, or both ratios will be understated.<\/p>\n<p><strong>What does all-you-can-eat MSP pricing include?<\/strong><br>It should include defined support and maintenance for a defined environment, and nothing else by default. Projects, hardware and licensing, bulk onboarding, after-hours work outside defined emergencies, personal devices and full incident response should be named as exclusions or priced separately.<\/p>\n<p><strong>How often should an MSP review its pricing model?<\/strong><br>At least annually, plus whenever an event trigger fires: a change in users or devices, a new site, new regulated data, or a client whose hours per unit stay outside your tier&#039;s normal band for a quarter.<\/p>\n<p><strong>Can I mix pricing models?<\/strong><br>Yes, and most MSPs do. A common setup is per-user for fully managed clients, a device rate for unassigned equipment, block hours for co-managed clients, and an hourly rate for projects and out-of-scope work. Keep the primary unit consistent within a tier so you can compare clients.<\/p>\n<h2>The short version<\/h2>\n<p>Pick the pricing unit that moves when your work moves, and prove it with hours per user and hours per device from your own PSA. Write down what the fee does not cover, especially after-hours and projects. And make sure the phone work is in the data before you trust any of it.<\/p>\n<p>If you want to run that test on time data that includes your support calls, <a href=\"https:\/\/vight.ai\/demo\">book a demo of Vight<\/a> and bring a client you think is underpriced.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Picture a dental group that signs a per-user agreement for 22 staff. Six months later you are supporting 22 people, 40 workstations, four imaging PCs nobody logs into, a shared front-desk login, two practice management servers and a phone system. The invoice still says 22. Now picture a law firm on a per-device agreement with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1100","post","type-post","status-publish","format-standard","hentry","category-msp-operations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>MSP Pricing Models: How to Pick the Unit That Tracks Your Work<\/title>\n<meta name=\"description\" content=\"MSP pricing models compared: per-user, per-device, tiered, all-you-can-eat. 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