MSP Pricing Models: Per-Endpoint vs. Per-User vs. Flat Rate
The pros and cons of the three most common MSP pricing models and how to choose the right one for your business.
Pricing is one of the most important and most debated decisions in the MSP business. The right pricing model aligns your revenue with your costs, incentivizes the right behavior, and is easy for clients to understand. Here's a breakdown of the three most common models.
Per-Endpoint Pricing
How it works: Charge a flat monthly fee per managed endpoint (workstation, server, mobile device). Typical range: $75-200 per workstation, $200-500 per server.
Pros: Simple to explain. Revenue scales with the client's device count. Easy to forecast. Aligns well with your tool costs (most MSP tools also charge per-endpoint).
Cons: Doesn't account for user complexity (some users generate 10x the tickets of others). Server vs. workstation pricing tiers add complexity. Clients may resist adding devices to management to save money.
Per-User Pricing
How it works: Charge per user, covering all their devices. Typical range: $100-300 per user per month.
Pros: Captures the full scope of supporting a user (multiple devices, cloud accounts, tickets). Easier for clients to budget (they know their headcount). Naturally includes cloud service management.
Cons: Harder to predict your costs (one user might have 5 devices, another might have 1). Users with specialized requirements (executives, developers) may need premium tiers. Doesn't cleanly cover infrastructure (servers, network equipment).
Flat Rate / All-Inclusive
How it works: One monthly fee for the entire client environment. Typically used for smaller clients (under 50 endpoints).
Pros: Simplest for the client to understand. No line-item negotiations. Encourages the MSP to be proactive (reducing issues reduces your cost, not your revenue).
Cons: Hardest to price correctly. Scope creep risk if the client grows without price adjustment. Can be difficult to compare with competitors who price per-endpoint.
The Right Answer
There's no universally "right" model. Most successful MSPs use per-endpoint for mid-market clients (50-500 endpoints), per-user for small businesses (under 50 users where per-endpoint is awkward), and custom flat-rate or per-user for enterprise clients. The key is that your pricing must cover your costs, deliver margin, and be simple enough that clients don't need an accountant to understand their invoice.