Research indicates that inexpensive Managed IT contracts often exclude essentials like monitoring, patching, and preventative maintenance. the very factors that prevent failures. Data from Smart Pro indicates that more than 6 in 10 businesses end up overpaying later when cheaper contracts fail to deliver core value.
The process usually goes like this:
But even when they fix the issue, what happens next?
What is often missing is:
If you've ever compared Managed IT quotes side by side, you have probably noticed something a little spooky. One MSP sends over a spotless, neatly priced monthly package that covers 'everything', whilst another quote lands in your inbox with an advertised price that is double the first quote you received...and then there's that one quote that seems too good to be true, suspiciously cheap whilst still offering you the world.
Research shows that unclear MSP pricing is a significant source of frustration for SMEs. They struggle to understand how services are priced which leads to confusion and dissatisfaction. Unclear pricing models and strategies are one of the causes of this, which can result in client dissatisfaction and low profitability.
The managed IT industry has grown a LOT, which has created a wide range of pricing models that aren't always the easiest to compare. Obviously most businesses would gravitate towards the lower-priced option (gotta save a bit of cash now and then haven't you!) only to discover later down the line that the quote wasn't actually all-inclusive, sometimes not even close.
As an SME, you want to know what you're getting for the price you're paying, but most importantly what you aren't getting. If you're staring at one quote that seems too good to be true, here's what could be hiding behind that bargain price tag.
To be clear - this isn't about MSPs being dodgy dealers. Most will try to be as clear as they can. It's just that the devil is in the detail, and too-good-to-be-true quotes can come from unclear scopes, assumptions and poor communication rather than outright bad intentions.
When you see a too-good-to-be-true price, it's almost always because a service or two has been excluded from the scope. The most common reasons include:
In other words: the price looks low because the service offered is low/excluded from the monthly fee.
Let's break down where these gaps appear.
Many cheaper MSP plans typically cover Monday to Friday, 9am to 5pm support. Any issues outside of that timeframe? You'll be paying extra, and sometimes it can be quite a bit of extra cash!
This would include:
Cheaper quotes often come with a strict window of support, meaning that if an emergency happens outside of that 9am-5pm threshold, you would move into the 'premium labour' pool which can easily wipe out any savings you thought you would be making.
We have spoken more about this in our Knowledge Centre - you can find the article here.
Cheaper up front usually means a lot pricier when things go wrong (especially outside of work hours).
This can be where the big shocks often happen.
Unless project work - related to necessary improvements or specific ongoing maintenance - is included in the initial scope of your service agreement, you'll need to pay extra for it. So even if the proactive monitoring might be included in your package, if this uncovers any necessary remedial work, that might not be included.
These project-based items typically include:
Some Managed IT contracts are only designed to keep your current systems running, not to evolve them. Cheap quotes leave project work out of scope to keep that monthly price low. That means those pesky unexpected charges can hit you where it hurts whenever improvements are needed.
If it feels cheap now, it will feel very different when that first project lands on your desk!
One big misconception of 'unlimited support' is that it includes on-site callouts. Sometimes even though 'unlimited support' is stated, the contract is built around remote-only support.
The moment a call-out is needed and engineer has to physically appear at your office, you may see charges for:
It is perfectly normal for additional costs like these to be charged on top. These things all carry operational costs as MSPs will have to pull engineers out of scheduled work, alongside factoring in diverting resources and travelling to site. The better MSPs will be up-front about these additional costs. This is an area where potential extra costs are left out however, leaving you with a surprise bill when you least expect it.
So while bargain quotes obviously look great on paper, the moment on-site works are needed that bargain quote no longer looks so great.
As you might expect, if an MSP is focused on getting your business with the lowest possible price, they're going to look for ways to make that money back elsewhere.
One area where they can do this is by adding extra margin in other areas - like hardware and licensing.
You may find:
But that's not to say that if you're MSPs costs are more than advertised elsewhere that they are hoodwinking you. Part of what you're paying for with a Managed Service contract is for someone else to do the work.
MSPs hardware and licencing costs can be greater as they are doing work for you around:
This is all fair enough, but you should always know what you're paying for. Ask your prospective MSP how they deal with hardware and licencing procurement to ensure you know.
Here's a solid 8-point checklist to ask your prospective IT Managed Service partner before you sign on the dotted line:
If the MSP you're enquiring with can't answer these clearly, that cheap quote may turn into an expensive one in the long run.
Cheap MSP quotes aren't necessarily a bad thing, but the unclear ones always are. The price isn't the issue, it's the missing context; the lack of transparency.
When SMEs choose the lowest quote without prodding to find out what's excluded, they often end up with:
As the Managed IT industry expands, transparency isn't optional, it is essential. Businesses deserve clear scopes, predictable billing and a provider who prioritises trust over a flashy headline price.
At One2Call, we believe the problem lies with unclear quotes and the lack of transparency that comes with it.
That's why we focus on:
If you want Managed IT that's predictable, honest and built on trust (not fine print), we're here to help.
Chat with us today - let's make IT support simple, not surprising.