If you own a small business, you likely need IT services. These services may include computer setup, cloud storage management, and cybersecurity measures. However, you might wonder how much you should expect to pay for these services and, more importantly, how to ensure you’re getting a good deal.
In this blog, we will break down the true costs of IT services, discuss common mistakes that small businesses make when negotiating, and offer tips for ensuring you get the best value. Additionally, we will introduce you to MSP Align, a service that helps businesses find, compare, and negotiate IT service contracts to save money and minimize headaches.
Actual Costs of IT Services
The cost of IT services depends on several factors, including the size of your business, the type of support you need, and whether you choose in-house IT staff or an outsourced IT provider (Managed Service Provider, or MSP). Here’s a breakdown of common IT service costs:
1. Hourly IT Support
Basic Support: $75 – $150 per hour
Advanced Support (Cybersecurity, Cloud Management, etc.): $150 – $300 per hour
Emergency Support: $200 – $500 per hour
2. Managed IT Services (MSP Pricing)
Most small businesses go with a Managed Service Provider (MSP), which offers ongoing IT support for a monthly fee. Here’s what you can expect:
Per Device Pricing: $50 – $150 per device per month
Per User Pricing: $100 – $300 per user per month
Flat Rate Pricing: $500 – $5,000 per month (depending on business size and complexity)
3. Cloud Services
Basic Cloud Storage (Google Drive, Dropbox, etc.): $5 – $50 per user per month
Advanced Cloud Solutions (AWS, Azure, etc.): $500 – $5,000 per month
4. Cybersecurity Services
Basic Security Package: $50 – $150 per month
Advanced Security Monitoring: $500 – $3,000 per month
Penetration Testing & Compliance Services: $1,000 – $10,000 (one-time cost)
5. IT Consulting and Strategy
One-time IT Assessment: $500 – $5,000
Ongoing IT Strategy Consulting: $100 – $500 per hour
As you can see, costs can add up quickly. But beyond the price tag, there’s another major concern: many small businesses don’t negotiate IT service contracts effectively.
The Hidden Costs of Not Negotiating a Good Deal
Many small business owners are unaware that IT service contracts are negotiable. This oversight can result in overpaying, becoming locked into unfavorable terms, or failing to receive the support they truly need. Here are some common pitfalls to watch out for:
1. Signing Without Comparing Providers
It’s tempting to go with the first IT provider you find, especially if they seem knowledgeable. But IT services vary widely in price and quality. Always compare multiple providers before signing a contract.
2. Not Understanding the Contract Terms
Many IT service contracts include fine print that can cost you later. Some things to watch for:
Long-Term Commitments: Some providers lock you into multi-year contracts with no easy way out.
Hidden Fees: Look out for extra charges for things like emergency support, off-hours service, or additional users.
Scope of Service: Make sure the contract covers exactly what you need. Some providers charge extra for basic services.
3. Paying for Services You Don’t Need
Many IT providers bundle services, which can be great—but only if you actually need everything in the package. For example, a small retail business may not need advanced cybersecurity tools meant for large corporations.
4. No Performance Metrics
If your IT provider doesn’t promise certain service levels (like response time guarantees), you might end up waiting too long for help. Make sure the contract includes clear performance expectations.
How to Get the Best IT Service Deal
Now that you know what to avoid, here’s how you can negotiate the best IT service deal for your small business:
1. Define Your IT Needs First
Before reaching out to providers, make a list of your specific IT needs. Do you need cloud storage? Cybersecurity? A full-service MSP? Knowing what you need helps you avoid paying for unnecessary services.
2. Get Quotes from Multiple Providers
Never settle for the first quote you get. Reach out to multiple IT providers and compare their pricing, service offerings, and contract terms.
3. Ask About Flexible Contracts
Try to negotiate short-term or flexible contracts. This way, you can switch providers if you’re not happy with the service.
4. Insist on Clear SLAs (Service Level Agreements)
Make sure the provider guarantees response times and service quality in writing. If they don’t meet those standards, you should be able to exit the contract or get compensation.
5. Work with an IT Procurement Expert
If all this sounds overwhelming, that’s where MSP Align comes in.
How MSP Align Can Help
At MSP Align, we help small businesses like yours find the right IT service provider at the best price. Here’s how we do it:
IT Needs Analysis: We help you figure out exactly what IT services you need.
Provider Research: We compare multiple IT service providers to find the best fit.
Contract Negotiation: We negotiate contracts on your behalf to ensure fair pricing and terms.
Performance Monitoring: We keep an eye on your IT provider to ensure they meet expectations.
Ongoing Oversight: We manage your IT relationships so you don’t have to.
Asking the Right Questions: We ask the questions you might not think of, diving deep into service details, security measures, process efficiency, and "what-if" scenarios to ensure your IT provider meets all your needs.
By working with MSP Align, you save time, reduce IT costs, and avoid the stress of managing IT providers on your own.
IT services are a necessary expense for any small business, but you don’t have to overpay or get stuck in a bad contract. By understanding pricing, avoiding common mistakes, and negotiating wisely, you can get the IT support your business needs without breaking the bank.
And if you want to make the process easier, MSP Align is here to help. We take the guesswork out of IT service contracts so you can focus on running your business.
Need help finding the right IT service provider? Contact MSP Align today and let’s get started!