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Money & Finance

Managed IT Services Pricing Guide: This is How Much it Costs

Typically businesses choose between two types of services, break-fix and managed IT services. For very small businesses, break-fix may work for a while, but as you grow, managed IT services tend to be cheaper.

To help you get started, we’ve created this guide to help you understand managed IT services pricing!

What are Managed IT Services

Managed IT services involve paying an IT business to consistently monitor and maintain the technology in your business. This means if something breaks, you’ve already been paying an IT business, and you can call them to have them come repair what’s broken right away.

Managed IT services typically cover:

  • Desktop Support
  • Email
  • Virus Protection
  • End-User Training
  • Hours Worked (labor)
  • Hardware/Software Purchases
  • Network Monitoring
  • Miscellaneous Jobs

With a managed IT provider you won’t have to worry about keeping your business safe and functioning. You can simply run your business and give them a call when something isn’t working as intended. The age-old question that everyone asks though is “how much does it cost?”

Managed IT Services Pricing

You’ll want to run the numbers and discuss with the IT provider you choose to determine which method of charging is the best for the direction your business is going. Most of the time, you’ll sign a yearly contract, so you want to be thinking about the cost to you in the future.

The three methods that are most commonly used are:

  • Charge per user
  • Charge per device
  • Charge with flat fees based on the service performed

The typical cost range for “charge per user” is between $50 – $300 per user. This is based on how many users you have, and the cost will typically go down as you gain more users.

For “charge per device” billing, the IT provider will typically have a set price per device type you have. They would charge for each firewall, desktop, and software service they are providing. This will typically run a small business $100 – $250 per month. Charge by device billing is nice because as your business groups, you know exactly how much the price will increase!

Flay fees based on the service will typically vary quite a bit, but if you are a very small business, this is the right choice for you. The IT provider will give you a discount for committing to them, and this type of billing will vary based on how much breaks. You can look at prices from $25 – $500, but if nothing breaks, you won’t typically be charged more then a minimum charge.

Find an IT Provider You Can Trust

Now you know what goes into managed IT services pricing! There are a few different ways that IT providers will charge. Typically they will pick one method of charging based on the size of your business. This is where trust comes into play.

Make sure you are interviewing your future IT provider so you can trust them to make the right choices for your business. Regardless of your choice, managed IT services are a great choice for almost any size business.


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About The Phat Startup

The Phat Startup was created by Mike McOwen to create a space where entrepreneur lifestyle could be focused on. We tend to live a different lifestyle than most. Entrepreneurs tend to be interested in maximizing their life, not only their profit.

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