A How-to for Evolving Pricing Models from Break/Fix to Recurring Revenue
Evolving from an hourly-fee based break/fix (B/F) service model to one that includes a managed services (MS) recurring-revenue model provides benefits to both IT Service Providers (ITSPs) and their clients. Len DiCostanzo, SVP, Community and Business Development, outlines five basic steps to creating a customizable pricing framework designed to optimize profitability in Autotask Corporation's new Smart IT Guide™: 5 Steps to Pricing Managed Services.
For ITSPs, the major benefits of a pricing model that includes managed services are predictable revenue streams, more efficient resource allocation and the ability to quickly scale to add new clients and manage more devices without adding resources. Clients benefit by having more predictable IT costs, more reliable performance from technology assets and a single point of contact for all things technology-related.
"ITSPs often struggle with pricing services to achieve desirable profit. Managed services and resulting MS contracts have also added a bit more complexity to the process," said Len DiCostanzo, SVP, Community and Business Development, Autotask. "This step-by-step guide features highlights from a webinar that has been attended by thousands of MSPs. It also details the steps ITSPs can take to price these services with worksheets and best practices and provides guidance for how to transition a client from a B/F contract to a MS contract."
Download the white paper here
www.autotask.com