Sign up to save your podcasts
Or
Share #26 - Don't be That Guy - Know Your Numbers or Die - MSP KPIs (Ryan Alter)
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
#26 - Don't be That Guy - Know Your Numbers or Die - MSP KPIs (Ryan Alter)
Learn the 13 MSP numbers that actually move profit. Host Josh Peterson breaks down revenue buckets, service gross profit, and the levers your service manager can pull today. Perfect for MSP owners and leaders who want clearer decisions, stronger margins, and a repeatable finance rhythm.
✅ Enjoyed this episode?
Like, subscribe, and share your biggest takeaway below.
https://beringmckinley.com/bering-mckinley-podcast-blog
Josh Peterson (Bering McKinley) is joined briefly by former MSP owner Ryan Alter to challenge the myth that you need “hundreds of KPIs.” You’ll learn the few numbers that matter—and how to wire your P&L so your team can actually manage to them. This episode translates finance into field-ready actions for MSP operators, service managers, and fractional leaders.
👉 The 3 revenue buckets (service, product, resold cloud) and why your overall GP target centers around a weighted mix (aim ~42%).
👉 Service GP target (55%) and the critical ratio: service salaries to service revenue at ~33%—only possible if service payroll lives in COGS.
👉 Agreement Gross Profit (AGP): pricing vs. onboarding scope, why CW member costs & addition costs matter, and using the agreement GP report to verify reality.
👉 Effective Hourly Rate (EHR): how to calculate it (spendable revenue ÷ hours) and compare to rack rate (goal ≥1.125×) while staffing work at the right technician level.
👉 Billable utilization truths, calling out out-of-scope work without drama, and giving real P&L responsibility (and bonus levers) to your service manager.
Visit https://beringmckinley.com for more MSP resources.
🔗 Resources & Links
• Ryan Alter - Silverstream: https://www.silverstreamav.com
• Bering McKinley MSP Consulting: https://beringmckinley.com
⏱️ Chapters
00:00 – Welcome & why only 13 numbers matter
02:18 – YouTube push, Riverside move, and “From the Trenches”
05:12 – The 3 revenue buckets and service sub-buckets
08:40 – Guest drop-in from Egypt (Ryan Alter)
10:05 – Chart of accounts cleanup & payroll in COGS
13:22 – Targets: 42% company GP, 55% service GP, 33% salaries ratio
18:10 – Agreement Gross Profit (pricing vs. scope; CW setup)
24:03 – Effective Hourly Rate (formula, rack rate multiple, staffing)
29:45 – Billable utilization and the skills pyramid
34:20 – Out-of-scope cadence and profitable “needy” clients
39:05 – Service manager P&L ownership & incentive design
44:12 – Perspective, resilience, and closing takeaways
🔍 Primary Keywords
msp kpis, service gross profit, agreement gross profit, effective hourly rate
🔍 Secondary Keywords
managed services finance, connectwise reporting, billable utilization, service manager incentives
#️⃣ Hashtags
#beringmckinley #bmkvisionpodcast #msp #msplife #mspowner #mspgrowth #mspsales #mspprocess #kpis #grossprofit #connectwise #servicedelivery #utilization #agreements #effectivehourlyrate #managedservices #itservices #itbusiness
View all episodes
By Josh PetersonLearn the 13 MSP numbers that actually move profit. Host Josh Peterson breaks down revenue buckets, service gross profit, and the levers your service manager can pull today. Perfect for MSP owners and leaders who want clearer decisions, stronger margins, and a repeatable finance rhythm.
✅ Enjoyed this episode?
Like, subscribe, and share your biggest takeaway below.
https://beringmckinley.com/bering-mckinley-podcast-blog
Josh Peterson (Bering McKinley) is joined briefly by former MSP owner Ryan Alter to challenge the myth that you need “hundreds of KPIs.” You’ll learn the few numbers that matter—and how to wire your P&L so your team can actually manage to them. This episode translates finance into field-ready actions for MSP operators, service managers, and fractional leaders.
👉 The 3 revenue buckets (service, product, resold cloud) and why your overall GP target centers around a weighted mix (aim ~42%).
👉 Service GP target (55%) and the critical ratio: service salaries to service revenue at ~33%—only possible if service payroll lives in COGS.
👉 Agreement Gross Profit (AGP): pricing vs. onboarding scope, why CW member costs & addition costs matter, and using the agreement GP report to verify reality.
👉 Effective Hourly Rate (EHR): how to calculate it (spendable revenue ÷ hours) and compare to rack rate (goal ≥1.125×) while staffing work at the right technician level.
👉 Billable utilization truths, calling out out-of-scope work without drama, and giving real P&L responsibility (and bonus levers) to your service manager.
Visit https://beringmckinley.com for more MSP resources.
🔗 Resources & Links
• Ryan Alter - Silverstream: https://www.silverstreamav.com
• Bering McKinley MSP Consulting: https://beringmckinley.com
⏱️ Chapters
00:00 – Welcome & why only 13 numbers matter
02:18 – YouTube push, Riverside move, and “From the Trenches”
05:12 – The 3 revenue buckets and service sub-buckets
08:40 – Guest drop-in from Egypt (Ryan Alter)
10:05 – Chart of accounts cleanup & payroll in COGS
13:22 – Targets: 42% company GP, 55% service GP, 33% salaries ratio
18:10 – Agreement Gross Profit (pricing vs. scope; CW setup)
24:03 – Effective Hourly Rate (formula, rack rate multiple, staffing)
29:45 – Billable utilization and the skills pyramid
34:20 – Out-of-scope cadence and profitable “needy” clients
39:05 – Service manager P&L ownership & incentive design
44:12 – Perspective, resilience, and closing takeaways
🔍 Primary Keywords
msp kpis, service gross profit, agreement gross profit, effective hourly rate
🔍 Secondary Keywords
managed services finance, connectwise reporting, billable utilization, service manager incentives
#️⃣ Hashtags
#beringmckinley #bmkvisionpodcast #msp #msplife #mspowner #mspgrowth #mspsales #mspprocess #kpis #grossprofit #connectwise #servicedelivery #utilization #agreements #effectivehourlyrate #managedservices #itservices #itbusiness