How Managed Service Providers Can Maximize Profits

How Managed Service Providers Can Maximize Profits

Daniel Hall 01/11/2021
How Managed Service Providers Can Maximize Profits

Managed service providers have become quite popular in recent years, thanks to the rising need for external task teams.

Most businesses today look to outsource some of their responsibilities, not only to save on costs but also to ensure high productivity. 

Many discussions in this field have been aimed at finding out how businesses can benefit from employing managed service providers. However, less focus has been given to the MSPs themselves. What can they do differently to maximize their profits and ensure consistency in their service provision? 

If you are an owner of an upcoming MSP, you could be motivated to achieve more, and this may require more capital. You could do some research on how to get working capital loans for small businesses, and once you’ve acquired the necessary resources, you can then focus on ways to maximize your profits. With that said, here are a couple of tips you can use to achieve that.

1. Reconsider The Customer Base



The cause of most financial problems faced by managed service providers can be boiled down to their choice of customers. As you get into this business, it’s important to note that not all customers are worth the investment. In fact, there are certain customers whose needs might cost a considerable amount of money but with very little returns. 

With that in mind, you may be wondering, how do you go about it? Well, start by listing all your potential customers and rank them according to the amount of money and time they may require, the potential for automation, and the customizations. Analyze all these factors and see if they meet your needs as well before you decide to invest your capital. This will help you save on your resources, which can be channeled to other operations within the business. 

2. Market MSP Products And Services

Like any other business, marketing is one key ingredient to a successful MSP project. Unfortunately, many entrepreneurs ignore this aspect of lead generation, especially when they’ve already attracted a few customers. However, product promotion should be your go-to method when looking to maximize your profits. 

To get the best out of this strategy, first, you should start by building a well-structured business website. Once it’s set up, ensure that your content is both entertaining and informative. You could also use social media to market your business, as it’s another viable option that’s equally effective. If it all seems overwhelming or if you don’t know which option suits your company best, you can visit us at for marketing services that can cater to your needs. 

3. Increase Pricing

Another way of maximizing your profits as an organization is by increasing the pricing of your products. This might sound straightforward, but it’s a considerably tough choice that most entrepreneurs prefer to avoid. As such, many providers end up holding the same prices for as long as possible, which is a disadvantage to them.

It's recommended that you make small adjustments to your pricing at least once every year. For instance, you could decide to raise the fees by 1% this year and do the same for subsequent years, rather than making a big price change every five years or so. The latter move may be a disadvantage, as it might shock your customers and cause some of them to leave. 

4. Make Use Of Supplier Discounts

Every business has a set of policies geared toward ensuring that they keep their loyal customers. For instance, software or hardware suppliers may have discounts on their products at least once every year. As a managed service provider, it’s a good idea to take advantage of these discounts and save a significant percentage of your money. Be sure to regularly check the supplier’s website or related advertisement platforms to stay up-to-date on any news regarding these discounts.

5. Upsell Services


Product or service upselling refers to the process wherein the seller recommends their more expensive products or services to clients looking to make a purchase. Of course, the primary goal of this is to increase the revenue generated from sales. 

If you’ve already built your reputation in the market, you can consider this strategy. Remember, people are more likely to buy from you if they know you’re a company they can trust. If they believe in the quality of your products and services, even if you only make two or three sales through this method, upselling may have a significant impact on your weekly or monthly profit margins. 


The popularity of managed services has grown over the past few years. If you’re already part of or are looking to venture into this field, you’ll need to make a few adjustments to your operations to maximize your profits and ensure that you can compete with other businesses. Though there are various ways to go about it, the tips given above can go a long way in enhancing your chances of success.

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Daniel Hall

Business Expert

Daniel Hall is an experienced digital marketer, author and world traveller. He spends a lot of his free time flipping through books and learning about a plethora of topics.

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