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The BMK Vision Podcast
The BMK Vision Podcast episodes
- #2 – Don’t Be That Guy - You Suck at Managed Services - Fix It! (Ryan Alter)
Most MSPs aren’t failing the tech—they’re leaking profit on the math. In this candid convo, Josh Peterson and guest Ryan (former MSP owner in Missoula, MT) break down the two numbers that decide whether your agreements win or wipe out: AGP and EHR. If you lead a service team or price agreements, this one will sharpen your margins fast.
✅ Enjoyed this episode?
Like, subscribe, and share your biggest takeaway belowhttps://beringmckinley.com/bering-mckinley-podcast-blogIn this “Don’t Be That Guy” session, Josh Peterson sits down with Ryan, a former MSP owner who scaled from a one-man shop to 25 people, to unpack why many MSPs “suck” at managed services—not in uptime or security, but in unit economics. They show how to treat your recurring revenue like a portfolio, and how two metrics—Agreement Gross Profit (AGP) and Effective Hourly Rate (EHR)—should drive pricing, dispatch, and staffing decisions. Guest highlight: Ryan, former MSP owner (Missoula, MT), brings hard-won lessons from two decades of growth, staffing, and project execution.
👉 Why AGP (agreement revenue − licensing − labor) is your north star and why 65% is a healthy target
👉 How to calculate EHR (agreement revenue − licensing) ÷ hours and why it must be ≥ your standard rack rate👉 The 33% Service Salary to Service Revenue ratio (SSSR): the single metric that predicts team health and profitability👉 Dispatch as a profit lever: matching technician cost/skill to ticket value, and stopping margin creep from “shiny tool” add-ons👉 Revenue recovery & portfolio mindset: spotting low-AGP agreements, re-pricing, and protecting margin without tanking CSATNatural keywords: MSP profitability, managed services pricing, ConnectWise reporting, AGP/EHR targets, service gross profit, utilization, dispatcher training
🔗 Resources & Links
• Ryan Alter - Silverstream: https://www.silverstreamav.com• Bering McKinley MSP Consulting: https://beringmckinley.com⏱️ Chapters
00:00 – Welcome & why “you suck” = profit math, not tech03:00 – Ryan’s background: hourly vs. recurring in a 25-person MSP05:45 – AGP formula, setup pitfalls, and the 65% target10:30 – “More revenue” myth vs. margin reality13:45 – Fixing PSA data so AGP is trustworthy17:20 – License creep, shiny tools, and pricing discipline20:00 – Dispatch as a lever: senior vs. junior tech tradeoffs24:30 – EHR redefined and why it must meet/exceed rack rate33:10 – Rate multipliers, discounts, and preserving 33% SSSR40:15 – Balancing utilization, CSAT, and employee health47:30 – AGP ↔ EHR don’t always correlate—how to diagnose51:00 – Action plan: measure, set targets, and do revenue recovery🔍 Primary Keywords
managed services profitability, agreement gross profit, effective hourly rate, connectwise agreement gross profit report, msp pricing strategy, service salary to service revenue ratio🔍 Secondary Keywords
msp dispatch best practices, recurring revenue portfolio, revenue recovery, service gross profit, utilization, dispatcher training, managed services targets, msp financial metrics#️⃣ Hashtags
#beringmckinley #bmkvisionpodcast #managedservices #msp #agreementgrossprofit #effectivehourlyrate #connectwise #mspfinance #recurringrevenue #dispatch #pricingstrategy #serviceprofitability #mspsales #mspowner #psa #mspgrowth #grossprofit #utilization #kpis #techservices56 min - #1 – Don’t Be That Guy - Managed Services Sucks - Here’s Why (Ryan Alter)
In this kickoff episode of the Bering McKinley Vision Podcast, host Josh Peterson, CEO of https://beringmckinley.com, sits down with Ryan Alter, a former MSP owner who successfully exited after running a contrarian, hourly-based model. Together, they unpack why the business of managed services often underperforms—and what MSP owners can do to fix it.
✅ Enjoyed this episode?
Like, subscribe, and share your biggest takeaway below. For more MSP resources and expert consulting, visit https://beringmckinley.com/bering-mckinley-podcast-blog https://beringmckinley.comWith two decades of consulting experience across 5,000 MSPs, Josh shares hard-won insights into profitability, pricing, and process discipline, while Ryan reveals the levers that made his service department outperform industry norms.
👉 Redefine success beyond predictable cash flow
👉 Fix the “agreement gross profit” blind spot👉 Use data-driven levers—time entry, ticket hygiene, dispatch, and pricing—to drive true marginYou’ll learn how Josh and Ryan:
• Diagnose managed-services profit leaks using AGP and EHR formulas• Train dispatchers and techs to identify out-of-scope work and recover lost revenue• Structure service buckets—recurring, project, and hourly—for balanced growth• Prepare clean metrics and systems that boost valuation at exitWhether you’re an MSP owner tired of razor-thin margins, a service manager seeking clarity in your numbers, or an operations leader chasing sustainable profit, this episode breaks down the formulas, frameworks, and mindset shifts to make managed services work for you.
🔗 Resources & Links
• Josh Peterson - Bering McKinley: https://beringmckinley.com• Ryan Alter - Silverstream AV: https://www.silverstreamav.com/⏱️ Chapters
00:00 – Welcome & why “managed services sucks”04:26 – Meet Ryan and his hourly model success11:30 – Understanding AGP and EHR for profitability18:45 – Why perfection matters in PSA setup and time entry26:10 – Using hourly pull-through as a profit lever33:40 – Training dispatchers & techs on out-of-scope work41:05 – Projects, pricing discipline & client education48:20 – The real math behind margin and valuation52:09 – Selling your MSP & being exit-ready55:49 – Wrap-up and next episode preview🔍 Searchable Topics & Tags
managed services profitability, agreement gross profit, effective hourly rate, ConnectWise, dispatch training, time entry discipline, MSP consulting, service department margins, project profitability, MSP exit planning#msp #managedservices #profitability #connectwise #BeringMcKinley #AGP #EHR #MSPConsulting #MSPOperations #mspgrowth
57 min
About The BMK Vision Podcast
From the publisher's feed
Welcome to The BMK Vision Podcast — the show for MSP leaders, IT professionals, and the vendors who support them. Hosted by the team at Bering McKinley, each episode delivers real-world insights,…
strategic guidance, and no-BS conversations to help you grow, scale, and profit in the managed services space. We challenge outdated models, highlight proven standards, and share stories from the front lines of consulting. Whether you’re just getting started or running a mature MSP, this podcast helps you bring clarity, structure, and profitability to your business.