The Practical MSP

In the inaugural episode of LogMeIn's The Practical MSP podcast, our host, Jen Six, talks MSP pricing with Shawn Walsh, former MSP CEO turned coach at Encore Strategic and author of The Pumpkin Plan for Managed Service Providers. Walsh says many MSPs underprice due to undervaluing expertise and relying on peer consensus rather than actual costs. He recommends targeting 55-65% gross margin (service revenue minus fully burdened tech salaries and tool costs) and aiming for best-in-class 20% EBITDA and 20% year-over-year growth, noting “10% is the new zero” for reinvestment. He favors per-user pricing, avoiding hourly billing, and transitioning clients by building a cost-based managed services offering and emphasizing proactive security and insurance requirements. His top growth hack? Budgeting and reviewing budget-to-actual monthly, with quarterly trend reviews and price adjustments when costs rise. He advises winning deals by differentiating through better boardroom-focused messaging, not lower prices, and offers a per-seat pricing calculator via email.