I recently heard an attorney (whom I trust) say that lawyers determine their pricing based on a calculus of skill and geography (meaning how many attorneys are in the area and how capable they are of doing the work). One thing I do remember from law school was the total absence of instruction on how to price one’s billable hours. In hind sight, this makes perfect sense since they expected all of us to be able to determine on our own what our worth was. I feel the same way about MSPs.
I was recently asked by a few MSPs whether their pricing was on par with other MSPs. I responded essentially by asking them if they were worth the rates they were charging. They naturally said they were. Most MSPs will say this. I have always had a difficult time with this notion that MSPs should treat their managed services pricing schemes just like a SKU when they were a VAR. It just doesn’t work that way anymore.