The 3 Biggest Mistakes New MSPs Make

By Len DiCostanzo, Senior Vice President of Community and Business Development, Autotask

By Len DiCostanzo, Senior Vice President of Community and Business Development, Autotask

When Business Solutions interviewed Len DiCostanzo, senior vice president of community and business development for Autotask, for the article “Making The Case For Managed Services,” he also listed the three biggest mistakes new managed services providers (MSPs) make.

1. Given they have picked the right product, the right vendor partner and have determined their client or prospect base is ready for managed services, it comes down to not pricing their services right. I have heard from MSPs wondering why they have developed a recurring stream around managed services, but are not seeing the profits they expected.  And, it is typically because they did not understand their costs. Perhaps they set their pricing based on what the market appears to want to pay, and they did not consider their costs nor how many units of managed services they had to sell in order to surpass break even and generate profit! 

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