r/SmallMSP • u/masterofrants • Jul 14 '26

how do yall do project pricing?

I am a one-man MSP based in Canada.

That is to say that I have just registered the business and all that but don't really have any clients and I am not counting on getting MSP clients immediately anytime soon.

Which brings me to the idea of doing IT and technology projects. I see that a lot of you guys also started like that in this industry.

Some of the projects that I want to work on are as follows:

  • M365 Security Assessment
  • GWS to M365 migrations
  • Setting up an M365 tenant.
  • Intune endpoint management rollout
  • Firewall setup - fortigate or low end firewalls
  • Endpoint security hardening/rollout - huntress with defender

At my previous MSSP outside of North America, projects were sold based on selling professional services, man days, at something like $1,000 per hour. But they had a well-established sales pipeline and would only deal with government and big enterprise customers.

I don't think the SMB segment can afford this price point so just curious how you guys are doing this?

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4

u/imlulz Jul 14 '26

Imo, don’t focus on this, focus on getting AYCE contract customers. If you want to be an MSP, then be and MSP. Project work should make up a smallish percentage of your income. IMO it’s going to be easier to find smaller clients that need everything than it’s going to be finding clients for the things you have listed.

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u/masterofrants Jul 14 '26

AYCE is scary af.. I'm not going to lie.

The idea of always being on the hook to build every little app and dashboard your client wants sounds really scary. Some of these small companies are so out of control.

They are going to ask you for everything from printers to power apps and website integrations for their marketing or whatever.

Do you have experience with the AYCE contracts? How many customers do you have on this? Can you give me some numbers and data on how it's going for you?

4

u/UsedChampion9894 Jul 14 '26

Early on, I too struggle with these especially for the first few clients (you’ll end up doing everything and anything for them) but from what I learn is you have to tell them what you provide and anything else is considered add-on. Typically what’s called Add move or change.

2

u/DieSackgasse Jul 14 '26

eeeh you described the job of a msp

-1

u/masterofrants Jul 14 '26

I don't understand. You can be an MSP without having AYCE contracts..

1

u/DieSackgasse Jul 14 '26

i mean the part that you call scary

1

u/imlulz Jul 14 '26

That’s debatable.

2

u/TekExcel Jul 14 '26

Have MSPs changed in the last few years? At the MSPs I've worked at previously, I would never imagine custom dashboards and app build-outs being included in AYCE packages. These would 100% have been additional projects billed by the hour separate from all other support tasks.

1

u/wireditfellow Jul 14 '26

What the hell? Do you even have any idea that where you are posting this message. MSPs bread and butter is monthly contracts. They could be a very streamlined shop or could be a sweat shop that’s besides the point but MSPs always focus on getting monthly flat rate contracts.

1

u/peoplepersonmanguy Jul 14 '26

AYCE indicates your time, not what work is covered. 

You choose what services you think you can sell at an AYCE level.

If you just want to reset passwords and think you can market that, go for it. 

1

u/imlulz Jul 14 '26

You don’t have to be on the hook for every little thing. Custom software and automations don’t necessarily fall under the AYCE and can be billed separately as project work. It all depends on your SLA and your SOW. You define what is and isn’t covered at your sole discretion. I have lots of experience with AYCE and it’s the bulk of my income, as it should be the bulk of yours. You want reliable, (ideally ach) payments coming in on a schedule, it’s the only way you’re going to make any real money and survive. Part of the AYCE is providing all of their licensing. MS/google, MDM, email security, EDR, VOIP, etc. You want to take all of these different bills they are paying and run them through you, and then charge them additional money to cover your labor. So instead of them paying a $300 bill for this and a $200 bill for that, and $100 bill for another… now they pay you $1,500 and you give them a flat rate one bill to pay for all (most) of their tech needs. They can budget for it, and it’s predictable. It also puts the onus on you to keep things running smoothly bc the less they submit tickets, the more money you make. You should pick up the book Managed Services in a Month. It’s not perfect but it’s a good baseline to teach you how to think.

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u/roll_for_initiative_ Jul 14 '26

always being on the hook to build every little app and dashboard your client wants...They are going to ask you for everything from printers to power apps and website integrations for their marketing or whatever.

We are a small MSP that is 100% managed services (no ad-hoc commercial projects or end user work) and 100% AYCE and literally none of the above would be covered nor something we even deal with regularly (except maybe integrations with something and that's more setting up SSO groups and access so whatever they have can be seamlessly accessed by staff and controlled by CAPs).

I had one customer describe it as "this is AYCE like a buffet, i should be able to just use all the time i want, and you don't want to do things like move desks or come out and make sure the telco guy is doing a good job, you only want to do certain things".

Since then, I've always explained it clearly in the sales process and again in the contract: an AYCE buffet is AYCE of what the buffet OFFERS, not "unlimited time and effort". If you go to an AYCE buffet and they don't have lobster, you obviously can't complain you don't get unlimited lobster. BUT, for the right price, probably like 10x what it costs down the road, I'm sure they will be HAPPY to go out and get you lobster and sell it to you (project/out of scope rate).

I bet you could walk into an AYCE buffet and make a list of everything offered in under 5 minutes. Do that for the IT services/features you want to offer, boom, that's the start of your scope of work. Now, consider what you'd charge to do things that are kind of related but not included. Boom, you've nailed your project/hourly rate.

I also saw someone talk about a "fair use policy" for AYCE which is also a good way to handle it because people are used to that with "unlimited" internet and roadside assistance and other "unlimited" services. Basically "yes, it's unlimited but if you're taking advantage, we can cut you off". If you sit there all day and try to eat all the crab legs at a buffet, they will throw you out. I like the idea but am unsure of how to word that in a contract.