Account economics
Gross margin, labor consumption, tooling, and discounts.
Operating decision calculator
Should your MSP raise prices, repackage, or fix account scope?
A price increase is not the only remedy for a weak account. Compare gross margin, labor consumption, tooling burden, discounting, contract age, service creep, renewal timing, and replacement cost to choose reprice, repackage, scope review, or hold.
What the decision depends on
FactorWhat to check
Contract position
Contract age, renewal timing, increase rights, and scope.
Service drift
Support intensity and unpriced work show whether scope is the issue.
Replacement basis
Current delivery cost and target operating model support the decision.
Worked example
Flag accounts where margin and labor have deteriorated, then separate price gaps from service-scope and packaging problems before communicating a change.
Questions owners ask
When should an MSP repackage instead of raising price?
Repackage when the account buys the wrong service boundary, consumes recurring work outside scope, or needs a different support model. Raise price when the package still fits but the economics no longer do.
Which account data should support a pricing decision?
Use current recurring revenue, labor, tools, discounts, service tickets, project spillover, contract age, renewal date, and the scope the customer is actually consuming.
How should renewal timing affect the plan?
Map contract rights and communication timing before choosing the effective date. Use the lead time to fix scope and prepare a clear account-level explanation.
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