Why do small businesses allow themselves to be ATMs to Managed Service Providers?

Over the years, I’ve worked both as Internal IT and as a technician for other Managed Service Providers (MSPs) in the area. One thing I never understood was the price-gouging and everything-costs-extra mentality of the MSPs. But even worse, I never understood why the small business clients put up with it.

When you work in Internal IT, that is, you work directly for a company in their IT department, anything IT-related is part of your job. If a user needs help, you help them. If something breaks, you fix it. If a CEO needs advice, you provide it. You are paid to perform a service, and you do just that.

When a company is too small to have their own internal IT department, they hire a Managed Service Provider. And with a traditional Managed Service Provider, everything costs extra.

Consider the following scenarios:

Scenario 1:

A printer fails and needs to be replaced.

Internal IT

The “Standard” MSP Way

Company purchases replacement from vendor, at market price

Company purchases replacement from their MSP, at a 30% markup

IT staff sets it up

Company pays extra for setup

 

MSP staff sets it up

Scenario 2:

A new user joins the company.

Internal IT

The “Standard” MSP Way

IT staff sets up the user and computer

Company pays extra for setup, because it’s an Add

 

MSP staff sets it up

Scenario 3:

A user needs help at their work area.

Internal IT

The “Standard” MSP Way

IT staff walks over and helps.

Company pays extra because they are over their allotted hours for the month

 

MSP staff tries to solve over the phone

 

Company pays extra for onsite visit

 

MSP staff arrives and helps.

Ultimately, the same service is being rendered. But the small business who opts for the traditional Managed Service Provider ends up paying a *LOT* more. And it’s apparently acceptable. Yet if an internal employee tried to pad a printer’s price by 30% and then pocket the difference, or if they told a manager they needed more money to perform a project, they’d be fired.

Again, I never understood this. Why would a small business owner be ok with paying extra for every little thing? Have too many MSPs convinced them that this is just “the way”?

It doesn’t have to be that way.

At Central Jersey Tech, we’re demolishing the traditional MSP way. I created this company with one idea: Give small businesses the same treatment that internal IT departments give larger companies. We just charge one low monthly rate, and everything they expect from internal IT is included.

  • We don’t charge extra when new users are added.
  • We come onsite when needed at no additional charge.
  • We help them purchase equipment at market rates, and don’t resell with outrageous mark-ups.
If you’re still reading, then you know what I know: You’re probably paying too much for IT support.

There’s a better choice. You can have quality IT services without breaking the bank.

Contact us today to save money on IT support and services for your small business.

Paul Turchin

Owner, Central Jersey Tech

IT business meeting

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