MSP Margins

I get asked this question all the time. How much should I charge my customer?

 

After Autoscale, RI and AHB savings, MSP partners should be trying to achieve 30%-75% margins for Azure profit. Very doable and you will stay competitive.

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Comments (2 comments)

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Travis Lamming

Thanks Tony. Can you show an example of a customer quote with those margins. Say 20 users, with quickbooks, and about 500 gig of storage? What are the average backups looking like out there? I think we are running fairly LONG with all our backups and could stand to trim back. 

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Tony Cai

Sure thing, this is a simple build with a DC/FileServer for the QB Database with 2 E8as_v5 hosts. Users would be able to use this as their daily driver machine with QB on it. 6 months of backup. All options below, even the 75% margin one is lower than the sell price of a RightWork (RightNetworks) lowest price QB option (OneSpace starts at $74). You get full control admin over an environment, don't have to deal with slow and overcrowded shared multitenant environments from Private Cloud hosting providers)

Example 35% margin:
QB Example with 35 Margin.pdf

Example 50% Margin: 
QB Example with 50 Margin.pdf

Example 75% Margin: 
QB Example with 75 Margin.pdf

You could even get the price lowered if you use Entra joined machines if you are looking to just host QB

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