The conversation around pricing is shifting, from a reactive response to inflation to a proactive lever for business health reports CRN. At Pax8 Beyond, Jonathan Mack made the case for why MSPs can’t afford to keep legacy pricing models. He emphasized that flat rates from two years ago may no longer cover today’s real costs, let alone fuel reinvestment or retain top talent. For MSPs looking to build lasting, profitable businesses, pricing needs to reflect value, not just market averages.Many providers hesitate to raise rates, fearing client loss or uncomfortable conversations. But Mack argued that not all revenue is good revenue. Some clients that look strong on paper may be draining resources and eroding profitability. Tools like MSP CFO can help providers analyze account-level margins to see where they're falling short. This clarity allows MSPs to prioritize which accounts to address first, rather than applying blanket increases across the board.Mack outlined three practical pricing models: market-based (top-down), cost-based (bottom-up), and value-based, which combines both with client-perceived value. Value-based pricing, he said, is the most strategic, especially for MSPs delivering high-touch, high-impact services. The key isn’t charging more for the sake of it, but aligning rates with outcomes and expectations.His final takeaway: Start small but intentional. Focus on your bottom five clients, the ones who take the most time and deliver the least return. Raising rates with these clients can either improve margins or open the door for higher-value partnerships. It’s not about losing clients; it’s about shaping a business built for growth, not just survival.
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