“Offer pricing is important for both the offer management team and the business development team.
The first step is to price the standard offer as described above.
The price of a standard offer is usually a monthly fee for a piece of infrastructure that is managed by the customer.
The most typical per-element pricing involves setting a monthly fee for each type of device you manage.
For example, per router for data, per port for voice, per server for server management, per mailbox for messaging, etc.
Many managed service vendors are moving to per-user pricing.
This allows users to have multiple devices, but I haven’t actually seen any examples of customers strongly requesting one over the other.
The recommendation would be to use the one that can be tracked and managed most effectively and is relevant to the offer or customer.
As an example, one person used both in some of the past managed businesses he has run.
There are also vendors that offer fixed fees for all the services they provide.
We are in a situation where some vendors offer fixed fees, while others offer a capped fee for usage.
The risk of billing too little is outweighed by the benefit of ensuring that the customer knows the cost of use.
The risk of billing too little is much greater than the benefit of ensuring that the client knows what it is costing them to use. Since this is a risk, it is a matter of exception to the client’s request.
Therefore, it is better to make exceptions for clients who ask for such matters.
If your client is a customer with a fixed volume of users/devices, then you are effectively setting a fixed fee.
You also have to decide if you want to set up a lump-sum fee up front.
Customers with lump-sum fees tend to negotiate a one-time fee, so you need to be prepared for that in advance.
And you must be prepared for that fee to be waived and for the monthly list price/discount to be incorporated into your strategy.
In many cases, it makes sense to have a one-time fee ready.
This is because, for a certain amount of trading, it can be practically free.
Next, we have to consider the charges for MACD (move, add, change, delete).
While it is possible to charge separately for all MACD work, we believe it is best and more common to include soft MACD in the fee.
The hard MACD is usually charged separately.
Hard MACD means that a part of your IT infrastructure will be physically changed.
In contrast, soft MACD can be done remotely online.
Soft MACD, on the other hand, can be done remotely online.”