ASK CHANNELNOMICS: Should We Charge MSPs More for Our Software?

At Channelnomics, we field questions about best practices, partner strategies, and channel programs every day. In this series, called “Ask Channelnomics,” we answer some of the questions we receive most from vendors.
Question: Hey Channelnomics, I’m getting questions from my colleagues in finance regarding pricing for MSPs. They look at how some of our MSPs price their service offerings and wonder if we should raise our prices. After all, they note, our MSPs typically mark up our technology by as much as 250% over what we sell our software for. Should I be concerned?

Answer: The difference between the vendor’s price for the MSP and the MSP’s street price does create a perception that vendors are underpricing their services. We hear this time and again. Before making any heady decisions, though, you may want to take a step back and ask yourself whether your business model is working...