How an MSP charges for its services tells you everything about the partnership you’re about to enter. The pricing model isn’t just a line item on your budget; it’s the foundation of the entire relationship. You’ll typically see costs structured as flat monthly fees per user, per device, or based on different service tiers.

Getting this right means moving away from the old, chaotic break-fix IT model where you only called for help when something was already on fire. A good pricing structure ensures your costs are predictable and, more importantly, makes sure your MSP wants the same thing you do: a stable, secure, and efficient IT environment.

Decoding Managed Service Provider Pricing Models

Let’s be honest, picking an MSP is a big deal. A one-size-fits-all approach to IT just doesn’t cut it. Every business has its own quirks—unique workflows, specific compliance headaches, and different growth plans. The goal is to land on a pricing model that gives you financial predictability while making sure your tech actually helps you hit your targets.

Before you start comparing quotes, you need to understand the philosophy behind each model. This isn’t just about the final number. It’s about how each structure affects your budget, what level of service you can expect, and whether it can grow with you. The best models create a true partnership, where your MSP is rewarded for keeping things running smoothly.

Key Pricing Concepts to Know

Before we jump into a side-by-side comparison, it helps to get a handle on the different ways MSPs think about pricing. Each model is really just a different answer to the question, “What am I actually paying for?” That answer has big implications for your business.

• Predictability: How easy is it to forecast your IT spend for the month? For the year?
• Scalability: When you hire more people or add more gear, does the cost scale in a way that makes sense?
• Simplicity: Is the bill easy to understand, or do you need a spreadsheet and three espressos to figure it out?
• Value Alignment: Does the model push your MSP to be proactive and prevent problems, or do they only make money when things break?

A solid MSP pricing model flips the script from reactive firefighting to proactive strategy. You want your provider to be invested in your uptime and stability, not in how many support tickets they can close.

A Quick Comparison of Core Models

To set the stage, here’s a quick look at the most common pricing structures you’ll run into. Each one strikes a different balance between cost, what’s covered, and how flexible it is. You’ll quickly see how they fit different types of businesses.

This table gives you a sense of the trade-offs. For instance, a per-user model makes budgeting a breeze when you’re hiring, while a tiered model gives you clear boundaries on what’s included. As we dig into each one, you’ll get the clarity you need to find the perfect fit for your company.

The Per-User Model: A Scalable Approach

Of all the ways to price managed services, the per-user model is easily one of the most popular—and for good reason. It ties your IT spending directly to your company’s most valuable asset: its people. Instead of getting bogged down in counting machines, you pay a single flat monthly fee for each employee, covering all the tech they touch.

The beauty of this model is its simplicity, which is a massive advantage for any growing business. When you bring on a new team member, you know exactly what the impact on your IT budget will be. No need to calculate separate costs for their laptop, phone, and tablet.

This structure makes forecasting a breeze and cuts through the billing complexity you often find with other models. You get a clear, predictable cost that scales perfectly with your headcount.

How Per-User Pricing Works in Practice

Think of the per-user model as an all-inclusive support package for each person on your team. The MSP charges a consistent monthly rate that covers a whole spectrum of services for that individual, no matter how many devices they use to get their job done.

A single user’s fee, for example, might bundle services like:

• Comprehensive Device Support: Coverage for their desktop, laptop, tablet, and smartphone.
• Helpdesk Access: Unlimited remote and on-site support for troubleshooting.
• Software Licensing: Management of essentials like Microsoft 365 or antivirus programs.
• Security Services: Endpoint protection, email filtering, and ongoing security monitoring.

This approach is a dominant MSP pricing strategy because businesses crave predictable monthly costs that grow smoothly with them. Under this model, MSPs charge a flat fee per user that covers every device they use, with average costs typically falling between $100 to $200 per user monthly.

The real philosophy here is to support the employee, not just the hardware. This shifts the MSP’s focus to user productivity, making them a true partner in your team’s efficiency rather than just a device manager.

This mindset is particularly effective in today’s work environments, especially with remote or hybrid teams. As more employees log in from different locations on multiple devices, managing IT on a per-user basis simplifies everything and ensures everyone gets the same level of service. It’s a crucial element in any strategy for effective remote employee management.

When Per-User Is the Ideal Choice

This pricing model really shines in specific business contexts. Its direct link between headcount and IT costs makes it the clear winner for certain operational setups.

Ideal Scenarios for Per-User Pricing:

• Fast-Growing Companies: Startups and scale-ups adding staff quickly benefit from the predictable, linear scaling of IT expenses.
• Businesses with Multi-Device Users: If your team regularly bounces between a laptop, smartphone, and tablet, this model is far more cost-effective than per-device plans.
• Organizations Prioritizing Budget Simplicity: CFOs and finance teams love the straightforward billing and how easy it makes forecasting.

But the per-user model isn’t a one-size-fits-all solution. It can become less economical in environments with a lot of shared workstations, like manufacturing floors, retail stores, or healthcare clinics. In those cases, a per-device model might offer better value since you aren’t paying a full user fee for multiple part-time employees who share a single computer. The key is to take a hard look at how your team actually works before locking into what is otherwise an excellent model.

The Tiered Model: Finding The Right Package

You’ve seen it everywhere. The tiered model is one of the most recognizable structures in any service industry, and it’s a huge player in MSP pricing. This approach bundles services into distinct packages—often labeled “Bronze,” “Silver,” and “Gold”—each with a higher price and a more complete set of features.

This model makes life easier for businesses. Instead of trying to build a custom plan from a long menu of services, you just pick the package that fits. A basic tier might cover fundamental monitoring and helpdesk access, while a premium tier could throw in advanced cybersecurity, proactive network management, and strategic IT consulting.

But don’t let the simplicity fool you. The real challenge is spotting the strategic gaps between the packages.

Evaluating Tiers Beyond The Feature List

When you look at a tiered pricing sheet, your eyes naturally gravitate to what you’re getting. The smarter move is to focus on what you’re not getting. MSPs carefully design these packages to nudge you toward higher-value tiers, making the entry-level options look affordable but leaving them functionally limited for most businesses.

This is a classic setup in managed service provider pricing. A basic tier might offer remote support and monitoring, while premium options add full network management and advanced security, with costs often falling between $99 to $250 per user per month.

This is where you need to be critical. That inexpensive “Bronze” plan might seem like a steal until a security incident happens that the “Silver” plan’s advanced threat detection would have caught. Suddenly, the money you “saved” is gone, eaten up by remediation costs and downtime.

The biggest risk with a tiered model isn’t overpaying for the top package; it’s under-buying on a lower tier and leaving your business exposed. The key is to match the tier not to your budget, but to your operational and security requirements.

Analyzing a Tiered Pricing Example

Let’s break down how this looks in the real world. Imagine an MSP offers these packages for a 30-employee company:

• Bronze Tier ($100/user/month): Covers remote helpdesk support, basic endpoint antivirus, and network monitoring.
• Silver Tier ($150/user/month): Adds proactive patch management, advanced endpoint detection and response (EDR), plus backup and disaster recovery.
• Gold Tier ($200/user/month): Includes all of the above, plus a virtual CIO (vCIO) for strategic planning and 24/7 security operations center (SOC) monitoring.

A business laser-focused on minimizing costs might jump on the Bronze plan. But without proactive patch management, their systems are sitting ducks for known exploits. And with no robust backup solution, a single ransomware attack could be a company-killer.

The Silver plan, while more expensive, closes these critical gaps. In this scenario, the extra cost isn’t just an IT expense—it’s an investment in business continuity. Of course, managing the software licenses included in these tiers is also a key consideration; we’ve shared some thoughts on software license management best practices in another post.

Ultimately, the tiered model forces you to do a realistic risk assessment. It’s not just about what services you want; it’s about which services you absolutely cannot afford to operate without.

Comparing Top MSP Pricing Models

Picking the right managed service provider pricing model isn’t about finding the cheapest deal. It’s about finding the structure that actually fits how your business operates day-to-day. Every model strikes a different balance between predictable costs, room to grow, and the administrative effort required on your end.

Let’s put the most common models side-by-side. We’ll look at them through the lens of what really matters: cost predictability, scalability for growth, and how simple they are to manage. This isn’t just a list of pros and cons; it’s a practical breakdown to help you see which one clicks with your company’s rhythm.

Cost Predictability and Budgeting

For most businesses, knowing what your IT spend will be each month is non-negotiable. The different pricing models handle this in very different ways, which has a direct knock-on effect on your ability to budget accurately.

The flat-fee (or “all-you-can-eat”) model is the undisputed champion of predictability. You get a single, fixed monthly bill for a whole suite of services, which makes budgeting a breeze. Finance teams love it because there are no surprises. The per-user model is a close second, offering solid predictability where costs scale cleanly as your team grows or shrinks.

On the other hand, the per-device model can get a bit wobbly. Your monthly costs will fluctuate as people add new tablets, dock a personal laptop, or get a second monitor. Tiered models look predictable on the surface, but you’re only predictable within your tier. An unexpected project or a sudden need can push you into a more expensive package or rack up out-of-scope fees, throwing your budget off course.

Scalability and Business Growth

Your MSP pricing model should be a tailwind for your growth, not an anchor. When we talk about scalability, we mean how easily and affordably your IT support can expand or contract right along with your business.

The per-user model really shines here, especially for companies where growth means hiring more people. Bringing on a new employee just means adding one more predictable, fixed cost to the bill. Simple. While the per-device model also scales in small increments, the administrative headache of tracking every new and retired piece of hardware can quickly become a full-time job.

The best pricing models don’t just tolerate growth; they make it simpler. Your energy should be spent on getting new team members up and running, not on renegotiating your IT contract every quarter.

Tiered pricing offers a different flavor of scalability—it’s based on service levels, not just headcount. This allows you to “level up” your support capabilities as your needs become more complex, but it can also lead to awkward and expensive jumps in cost. A value-based model, in contrast, is built to scale alongside your business outcomes, positioning your MSP as a genuine partner in your success.

The infographic below gives a great visual of how these tiers often break down, comparing elements like the number of endpoints covered, monthly fees, and guaranteed response times.

As the chart shows, paying a higher monthly fee generally gets you broader coverage and faster support. The key is making sure the service level you’re paying for actually matches what your business needs to thrive.

Administrative Simplicity and Alignment

How much time is your team going to burn managing the relationship with your MSP? This is a critical, and often overlooked, factor. You need a model that’s not just simple to administer but also aligns your provider’s goals with your own.

• Per-User and Flat-Fee: These are the easiest to manage, hands down. Billing is crystal clear, so there’s not much to track or question. Crucially, they also put you and your MSP on the same team—the provider is motivated to keep your systems running smoothly to cut down on their own support tickets.
• Per-Device: This model demands a meticulous inventory of every covered device. The constant administrative churn of adding and removing hardware makes it far more complex than a simple per-user count.
• Tiered: It seems simple, but this model can introduce friction. You might end up in debates over whether a particular issue falls under your current plan, which can sour the relationship.
• Value-Based: This approach provides the tightest strategic alignment. The MSP gets paid based on hitting specific business goals, like maintaining 99.9% uptime. The catch? It takes a lot of work upfront to define, measure, and agree on those key performance indicators (KPIs).

At the end of the day, you’re looking for a structure that causes the fewest administrative headaches and ensures your provider is focused on proactive, preventative care. The quality of the tools they use, like their help desk software, is also a massive piece of the puzzle. For a closer look at what separates good from great, check out this excellent help desk software comparison.

By carefully considering these elements—predictability, scalability, and simplicity—you can look past the price tag and select a pricing model that truly works as a strategic asset for your business.

Before we move on, let’s pull all this together into a quick-reference table. This should help clarify which model shines in different situations.

Comparative Analysis of MSP Pricing Models

This table offers a side-by-side look at the five most common managed service provider pricing models, breaking them down by key business considerations to help you find the best fit.

Each model has its place. The trick is to honestly assess your own business’s needs, growth plans, and administrative capacity to see which one makes the most sense for you.

Looking at Other Ways to Price MSP Services

While per-user and tiered models get most of the attention, they’re far from the only options out there. Several other powerful pricing structures exist that are a much better strategic fit for specific types of businesses.

Stepping outside the most common models lets you find a structure that truly matches how your company operates. For businesses in manufacturing, healthcare, or logistics—where it’s common for multiple employees to share a single workstation—a per-user model just doesn’t make sense. This is where the alternatives really shine.

The Per-Device Model for Asset-Heavy Environments

The per-device pricing model flips the script, focusing on hardware instead of people. Rather than a fee per person, you pay a set monthly price for each managed device—be it a server, desktop, laptop, or firewall. It’s a granular approach that gives you precise cost control over your technology.

This model is a fantastic choice for businesses where the device count is much higher than the user count, or where tech is shared. Think of a factory floor with 20 shared computer terminals or a hospital with dozens of nursing station PCs used by rotating shifts. In those cases, paying per device is way more cost-effective than paying a full user fee for every single employee.

The main drawback? Administrative overhead. Every time a new device comes online or an old one is retired, your bill changes. This means you have to be on top of your asset tracking, which can make budget forecasting a bit trickier compared to a straightforward per-user plan.

The All-You-Can-Eat Flat-Fee Model

For businesses that absolutely need budget predictability, the all-you-can-eat (AYCE) or flat-fee model is the answer. It bundles a comprehensive suite of IT services into a single, fixed monthly price. This covers everything from helpdesk calls and network monitoring to strategic advice, so you never have to worry about surprise charges.

This approach builds a real partnership. Since the MSP’s fee is fixed, they have every reason to keep your systems running smoothly and securely to minimize their own support costs. They become invested in preventing problems before they start, which is a direct win for your uptime and productivity. A big piece of this is automation, and if you want a peek into how top-tier MSPs make this happen, understanding the fundamentals of IT service management automation is a great start.

The biggest risk with a flat-fee model is hidden in the fine print. You have to be absolutely clear on what’s included and—more importantly—what isn’t. A vague Service Level Agreement (SLA) is a recipe for arguments over what “all-you-can-eat” really means.

The Value-Based Model: A True Partnership

The value-based model is the most strategic and advanced form of MSP pricing you’ll find. It ditches the old metrics of users and devices and instead ties the MSP’s compensation directly to hitting specific business goals. This completely changes the dynamic from a simple vendor-client relationship to a genuine strategic partnership.

Here, pricing is built around the key performance indicators (KPIs) that actually affect your bottom line. For instance, an MSP’s fee could be linked to:

• Guaranteed Uptime: Hitting 99.99% system availability for your most critical applications.
• Security Improvements: Cutting down the number of security incidents by a specific percentage.
• Compliance Adherence: Successfully passing an industry-specific compliance audit.
• Revenue Impact: Driving up e-commerce sales by boosting website performance.

This model demands a high level of trust and requires the MSP to have a deep understanding of your business objectives. The setup is intense; both sides have to agree on the metrics, how they’ll be measured, and the reporting schedule. While it creates the strongest possible alignment of incentives, its complexity means it’s best for mature organizations that see IT not as a cost but as a direct driver of growth. When you choose this path, you’re not just buying IT support—you’re investing in guaranteed business results.

How to Choose the Right MSP Pricing Model

Moving from understanding MSP pricing models to actually choosing one requires a solid framework. This isn’t about finding some mythical “best” model. It’s about pinpointing the one that fits your company’s operational DNA, budget realities, and strategic roadmap like a glove.

To get started, you need to answer a few honest questions about your business. Think of your answers as a compass—they’ll point you directly toward the most logical pricing structure for your situation. There are no wrong answers here, only the clarity that comes from knowing what truly matters to your organization.

Key Questions to Guide Your Decision

Before you even look at an MSP’s proposal, get your leadership team in a room to hash out these points. Getting on the same page internally is the absolute first step toward a successful partnership.

• What’s our number one financial goal? Are you looking for absolute budget predictability with one, unchanging monthly bill? That screams flat-fee. Or do you need costs that flex directly with your headcount, pointing you toward a per-user model?
• How does our business actually grow? If expansion means hiring new people who each get a laptop and a phone, the per-user model is a perfect, natural fit. But if growth looks like adding specialized equipment, servers, or shared workstations, a per-device model gives you much more granular cost control.
• How do we really see our IT function? Is it a necessary cost center that just needs to be managed efficiently, or is it a strategic engine for growth and a competitive advantage? Your answer here is a big deal.

If you view IT as a utility that needs to “just work,” predictable models like flat-fee or per-user are your best bet. But if you see IT as the key to hitting specific business outcomes—like achieving 99.9% uptime or sailing through a compliance audit—a value-based model will create the tightest possible alignment and partnership.

Tailored Recommendations for Different Business Profiles

Your answers will probably slot your company into one of a few common business profiles. Each of these profiles has a pricing model that naturally aligns with its needs, ensuring the MSP relationship becomes a strategic asset, not a source of friction.

Scenario 1: The Fast-Growing Startup

When you’re scaling fast, simplicity and predictability are everything. You need an IT budget that grows in a straight, predictable line every time you hire someone new.

• Recommendation: The Per-User Model is almost always the right call here. It makes forecasting a breeze and guarantees every new team member is fully supported from their first day, without having to renegotiate your contract every other month.

Scenario 2: The Established Enterprise

For a larger, more mature company, the conversation shifts to things like security, compliance, and deep strategic alignment. You have the resources to define and measure specific performance metrics. Optimizing software licenses and user access also becomes a major priority. For those working in the Atlassian ecosystem, for example, digging into a Jira license cost optimization framework can uncover some serious savings.

• Recommendation: A Value-Based Model or a comprehensive Flat-Fee Model backed by a detailed Service Level Agreement (SLA) is ideal. These structures tie the MSP directly to your high-level business goals while still giving you that critical budget certainty.

By working through this simple framework, you can elevate the conversation beyond just comparing price tags. You’ll be able to confidently pick an MSP pricing model that acts as a true strategic asset, driving efficiency and supporting your vision for the future.

Frequently Asked Questions

When you’re trying to figure out managed IT services, the different pricing models can feel a little overwhelming. But getting to the bottom of how they work is the first step in making a smart investment.

What Is The Most Common MSP Pricing Model?

The tiered pricing model is still the one you’ll run into most often. MSPs love to bundle their services into packages like “Basic,” “Standard,” and “Premium.” It gives businesses a clear, pre-packaged set of options to choose from.

That said, the per-user pricing model is right on its heels and gaining ground fast, mostly because it’s so straightforward. The costs scale directly with your team size, which is a huge plus for growing companies that want predictable expenses.

How Much Do Most MSPs Charge Per Month?

This is the million-dollar question, and the answer is… it depends. Pricing is all over the map based on the model, the exact services you need, and your company’s size and complexity.

But for a ballpark figure, you can expect per-user plans to land somewhere between $100 to $200 per user, per month.

Tiered plans often fall into a similar range. An entry-level package might start around $99 per user, while a premium tier with all the bells and whistles—like 24/7 security monitoring and strategic IT consulting—can easily top $250 per user.

A word of advice: the lowest price tag rarely equals the best value. Zero in on the model that actually fits your business goals and make sure it covers the non-negotiables like security, data backup, and proactive maintenance. That’s what prevents expensive downtime later.

Which Pricing Model Offers The Best Budget Predictability?

Hands down, the flat-fee or “all-you-can-eat” model takes the cake for budget predictability. You pay one consistent monthly price for a comprehensive suite of services, completely wiping out surprise invoices.

If your business needs absolute certainty in its monthly IT spend, this is the model for you.

At resolution Reichert Network Solutions, we know how crucial it is to optimize costs without compromising on security or efficiency. Our User Deactivator for Atlassian automatically finds and disables inactive user accounts, making sure you’re only paying for the software licenses people are actually using. It’s a simple way to streamline user management and cut down on waste.