Labor burden
Delivery hours and fully burdened hourly cost.
Provider pricing calculator
Calculate viable MSP service pricing before launching the package
Provider pricing must cover delivery labor, tooling, onboarding and support burden before it can produce a target gross margin. Model minimum viable price, target price, break-even customer size, and margin sensitivity locally before publishing the package.
What the decision depends on
FactorWhat to check
Tooling burden
Per-user, per-device, tenant, and minimum commitments.
Shared delivery
Onboarding, support, management, and allocated overhead.
Margin target
Minimum viable and target gross margin across customer sizes.
Worked example
Target price = direct delivery cost divided by one minus target gross margin. Then test small accounts, onboarding spikes, and support intensity separately.
Questions owners ask
How do I calculate a target service price?
Add direct labor, tooling, onboarding allocation, support, management, and shared delivery cost, then divide that cost by one minus the target gross margin.
How should onboarding appear in recurring pricing?
Price onboarding separately or recover a defined allocation over a stated customer term. Do not hide a large one-time delivery burden inside an otherwise profitable monthly package.
Why does customer size change package economics?
Tenant minimums, management time, and fixed support work weigh more heavily on small accounts. Test the package at several customer sizes before setting a minimum.
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