03 May 2024

How Much Should a Small Business Pay for its IT Support

What are the conventional cost models?

Hourly Rate: This is a pay-as-you-go model where you’re charged for the time spent by the IT support provider on your issues. Rates typically range from £75 to £150 per hour, depending on the provider’s expertise and location. This type of ad-hoc support offers flexibility, but it may not include SLAs.

Fixed Monthly Fee: Many IT support companies offer fixed monthly plans based on the number of users or devices supported. Prices can vary widely, starting from £500 and going up to £2000 or more per month. These plans often include unlimited support within certain parameters. Most MSPs promote this methodology.

Incident fund: A block of hours is purchased and paid for upfront. The client calls off support typically in 15-minute increments. When the fund is depleted a new block of calls is purchased. This model is normally underpinned by SLAs as well as a minimum contract term. From the client’s perspective, it may be difficult to measure value because the commercials are too blunt. For example, if a call takes 2 minutes to fix, a 15-minute block is consumed.

Revolutionizing IT Support: Pay Only for What You Use!

In today’s fast-paced business world, small businesses with less than 100 users need IT support that’s efficient, flexible, and budget-friendly. That’s where pay-for-usage IT support shines.

Most conventional support cost models are pinned to the number of users or endpoints, which means that businesses could be paying over the odds. Unlike our peers who charge on a per-user basis, we calculate premiums based on your actual usage. We use a cost calculator to determine your premium (and we share that with you). The result is you only pay for what you consume. Why should a 50-seat company pay any more for their support if they log the same number of calls as a company that has half as many users? We think that’s unfair and unethical.

Here’s an example:

CONVENTIONAL MODEL 1: 50 users/endpoints @ £ 20.00 per user per month = 12k per year

CONVENTIONAL MODEL 2: Incident blocks of 30 hours @ £ 75.00 per hour purchased upfront = £ 2250.00 per block. Assuming 200 incidents per year = 15k per year

OUR MODEL: Based on an average monthly call volume @ 18 calls per month = 7.8k per year

Benefits in a Nutshell:

Cost Efficiency: Say goodbye to overpaying for unused resources. Paying only for what you use ensures every penny counts.

Flexibility: Scale services up or down effortlessly based on your business’s evolving needs. The only metric that’s important will be your monthly call volume.

Transparency: Clear, detailed billing gives you complete visibility into your IT expenses, empowering better financial planning.

By embracing pay-for-usage IT support, small businesses can revolutionize their approach to IT, maximizing efficiency, and savings while ensuring they have the support they need to thrive. It’s time to pay only for what you use and unleash the full potential of your business!