I was talking with a MSP recently and the issue of pricing came up...again. It seems there are a growing number of companies (note I'm not calling them managed service providers) selling IT management services at what I will call "ridiculously low prices". While I have always tried to stay out of issues like pricing this topic is just too important to pass by without comment.
On a recent trip to New York I found myself walking past a lot of the typical street vendors you see in such a large city. People were selling watches, videos, computers, and lots of other electronic equipment. To be honest, I did stop and window shop a few times but I never bought anything. Why? Because I knew the products to be fake. How did I know? The prices were too low.
I consider myself a pretty good comparative shopper. In fact, I tend to over analyze things, especially when I buy more expensive items. The point is, I know the general price range of a product and try to stay within those boundaries. When I come across a street vendor and see a Rolex watch selling for $500 dollars, I know something is wrong.
Now, when it comes to managed services, many end-users may not be aware of what a managed IT service should cost. However, there are some situations that should be very apparent to anyone, even an unseasoned consumer of IT services. Here's my point. MSP's need to be more aware of these types of operators and start calling them out. Legitimate vendors are harmed when a knock off (or worse, stolen) product is being sold on the street. The same is true with MSP's. Actually, it is the business consumer who is really being harmed, because they don't know they are being taken advantage of until it is too late.
So, the next time you see managed services being sold for "too low a price". Buyer beware!
