Are You Overpaying Your MSP? Stop Getting Overcharged for IT Services

Managed Service Providers (MSPs) offer invaluable IT support to businesses. However, not all MSPs are created equal. Some might be billing you for services or equipment you no longer use—or worse, charging you unjustifiably high rates while offering limited value in return. Are you getting the best bang for your buck, or is it time to reevaluate your IT service agreements?

Let’s break down some real-world examples to uncover what you could be paying for IT services:

Real-World IT Costs—What’s Reasonable?

• 12-Person Law Firm:
  Total: $27,000 (equipment and labor*) (major workstation upgrades)
  Labor: $14,615
  Parts: $12,350

• 12-Person Law Firm (formerly 9 employees):
  Total: $12,500 (equipment and labor*)
  Labor: $9,300
  Parts: $3,200

• 6-Person CPA Firm:
  Total: $6,900 (equipment and labor*)
  Labor: $5,400
  Parts: $1,500

• 4-Person CPA Firm:
  Total: $12,200 (equipment and labor*) (major equipment upgrade)
  Labor: $4,200
  Parts: $8,000

• 11-Person Architectural Firm:
  Total: $15,600 (equipment and labor*)
  Labor: $8,100
  Parts: $7,500

* Equipment and labor expenses include workstations, servers, and networking gear. These figures do not encompass costs for cell phones, telephones or software outside of operating systems.

Across these examples, the average cost per employee per year comes out to $1,785. The most expensive scenario—$3,050 per employee per year—occurred during a major infrastructure upgrade. Outside of these exceptional cases, the figures consistently align with reasonable expectations.  Remember this includes workstations, servers and networking equipment.

Want deeper insights? Historical data on these firms is available and provides a broader perspective on cost trends going back to 2021. You can explore this information in detail at the following link: Understanding the Cost of IT Support: A Guide for Businesses.

This added information can help you make informed decisions about whether your MSP is delivering value or overcharging for services.

Larger Firms, Lower Costs per Employee

Think a larger team translates to higher costs? Think again. When comparing smaller firms to larger ones, the per-employee cost actually declines:

• 80-Person Firm:
  Total: $63,200 (equipment and labor)
  Average Cost/Employee: $790

• 130-Person Firm:
  Total: $126,400 (equipment and labor)
  Average Cost/Employee: $975

This trend shows that as businesses grow, their MSP costs become more efficient. Your firm’s size and IT complexity don’t necessarily justify overblown bills.

Spotting Overcharges

In our evaluations, we’ve seen businesses unknowingly pay for outdated or unused equipment and services. This doesn’t just strain your budget—it’s a clear sign your MSP isn’t operating in your best interest.

It’s time to ask yourself:

• Are you confident in your MSP’s billing transparency?

• Do you have a clear inventory of your IT assets and their associated costs?

If not, you could be overpaying for services that no longer serve your business.

Take Action—Stop Overpaying

Don’t settle for mediocre service at premium rates. Let us review your current IT expenses and contracts for free (restrictions apply). We’ll provide honest feedback, help you identify savings, and ensure you’re getting top-notch service for the right price.

Still hesitant? Check out our online reviews to hear what our clients have to say. Stop overpaying your MSP. Contact us today and take the first step toward smarter, fairer IT support.