Managed IT
Services Pricing

What Should You Expect to Pay for Managed IT Services?

We’re happy to discuss Managed Service Provider (MSP) pricing, but providing an exact cost estimate can be difficult. First, we need to understand your needs, goals, the makeup of your current IT team (if any), and the current status of your IT infrastructure. There are several factors that can increase or decrease the cost of IT solutions, which we'll cover on this page. If at any time you’d like to begin a discussion specific to your organization, contact us to schedule a consultation.

We understand why any prospective managed IT client would be curious to know our pricing models. Are we way out of your price range, or will this be something we can make work?

On this page, we'll outline the factors that impact costs, and provide example price ranges from our actual managed services clients.

            

What is Managed IT Services?

Managed IT Services is a cost-effective way to manage part or all of your IT environment.

Fully managed IT can step in and act as your IT department. Your provider handles everything from business and technology planning to end-user support and system/software upgrades.

Alternatively, co-managed IT can work alongside your IT department. You may elect to have your managed IT partner handle all of the complex IT initiatives while your in-house team handles day-to-day tasks (daily maintenance, backup, administration and IT security). Or, your in-house team may want to tackle the higher-level process and have your managed IT partner take on the day-to-day workload for your organization.

What's Included with Managed IT Services:

  • Proactive IT Security
  • Help Desk Support
  • Monitoring, Alerting & Reporting
  • Backup, Recovery, Business Continuity & Disaster Recovery
  • Hosting Solutions
  • Collaboration & Access

Because the managed services engagement can take on many different formats, knowing how much to budget for these services can be difficult to define without knowing the full context of your organization’s needs. But there are factors that can affect pricing.

 

 

How Pricing for Managed IT Solutions is Determined 

While obtaining new hardware and software or scheduling a one-time project or incident response will often be items you need all-at-once (with some exceptions, payment plans are realistic possibilities), managed IT services work in a subscription model where an ongoing relationship will be handled with monthly payments.

We encourage all prospective clients to have a conversation with a Loffler team member before we can offer a specific quote for you because we need to understand your environment in order to be accurate.

Factors that Impact IT Support Services Pricing  

  • The number of employees and/or users you have. The number of users will directly impact your managed IT cost.
  • Number of devices (servers and/or firewalls, for example), number of computers, number of mobile devices. On that subject, are employees allowed to bring their own devices in a BYOD policy?
  • How many locations do you have? Are you planning to grow within the next year? 5 years?
  • Do you have remote employees working either part-time or full-time?
  • SLA (service-level agreement) Your managed IT price can depend on the terms you and your service provider agree upon. Loffler offers incentives for signing longer contracts.
  • Does your organization have someone in charge of IT to be designated as the point of contact? Loffler offers fully-managed IT programs and co-managed IT, where we work alongside an existing IT team.
  • Cloud backups and disaster recovery / regular backup of data & critical systems
  • What are you currently using? We also need to know what kind of systems you’re running on, and how adaptable they are to the managed services support we are able to offer. If an organization is running on old servers that are overdue for an upgrade, we’d likely have to discuss that before being able to entertain a managed services plan.

Why do we need this sort of data? So we can adequately scope out information like how much data is coming from your environment, so we can scale our resources (engineers, software, etc.) accordingly.

Examples of Managed IT Costs

These examples aren’t a replacement for talking with an expert, but you’ll get a better idea of what prices you can expect. Keep in mind there are ways to save money when signing a managed IT services agreement like:

  • Signing an agreement for 3+ years to avoid paying the one-time setup fee
  • Gaining volume discounts for having a large number of devices to manage

Working with one of our engineers is the best way to discover where you can save money on a managed services contract.

Example 1: Small-to-Medium-Size Business (SMB) with One Location & Nine Devices

Here's a pricing example from one of our small business clients. This business owner needed the technology to support business growth but didn't have the time or resources to find or hire a qualified IT employee. They decided outsourcing their IT needs was the best route to support their business goals. Let's break down their costs.

 

Small Business Managed IT Services Pricing

Example 2: Business with Four Locations & 100+ Devices

Here's a pricing example from a larger client with multiple locations, servers and over 100 devices. With four locations and hundreds of employees working with computers, it made sense to outsource this business'  IT needs to a managed service provider. Let's break down their costs in the graphic below:

Managed IT Provider Pricing for Medium Sized Business

The sticker price might be shocking, but consider the cost and time it requires to find, hire and retain expert IT employees. 

According to Payscale.com, the average salary for an employee working in information technology (IT) services is around $80,000, and the cost goes up as the employee has more specialization. Someone is always going to be willing to pay your IT person more than you. The challenge lies in retaining existing employees and finding new ones when needed. So how do you keep your IT team? 

The spectrum of expertise and the pay scale varies widely in IT. Are you looking for a $35,000 help desk support person to run to Best Buy and get a mouse, or are you needing someone at $120,000 who can be part network administrator, part infrastructure specialist and part security expert? When prices get too high, it might be time to consider outsourcing some or all of an organization’s IT needs. 

Small Business IT Services

Many SMB owners see managed IT services as a nice-to-have extra when planning budgets.

Consider the expertise and predictable monthly costs included in managed IT support and you'll see why outsourcing IT can be extremely cost-effective for small businesses. Finding, hiring, and retaining great IT employees can be challenging for SMBs, particularly when trying to compete with compensation packages from larger companies.

Having access to IT experts 24/7 for a fixed monthly cost allows SMB owners to focus more on growing their business, and less on technical issues.

We enjoy working with organizations of all sizes and helping them make sense of their technology. We'll work with you to determine what your organization needs to be set up for the future. 

Back to Top


We understand that cost is an important factor when deciding if managed IT services are right for your organization. We're here to help you remove IT distractions so you can focus on running and growing your business. Contact us now to learn how much managed IT services will cost for your business.

Contact Loffler to Learn More

Managed IT Services FAQ

What are the benefits of managed IT services?

Outsourcing your IT needs through a managed service provider can be a great investment. Having access to expert IT engineers for a fixed monthly cost will help you focus on growing your business instead of worrying about technical issues. 

What's included in managed IT services?

Each organization has different needs for their IT environment, but here are some services that are usually included:

  • Dedicated IT Support Team
  • Monthly Reporting & Health Checks
  • Network Monitoring, Training & Updates
  • IT Strategy Roadmap
  • Backups
  • Unlimited Remote Support for Covered Devices
  • Anti-Spam/Malware/Virus
  • End-User Training
What kind of agreement are Managed Services clients asked to make?

Managed services clients usually agree to a 2-year contract.

Many MSPs offer incentives for signing 3+ year agreements such as waiving the initial one-time setup fee.

 

How long does it take to get up and running?

From the start of the project to pushing everything live usually takes around 30 days.

This depends on the complexity of the project and collaboration between clients and providers.

We like to give a timeframe of 30 – 60 days.

How do you know what my organization's IT needs are?

This is where industry experience and expertise come into play.

When you work with us you'll be assigned a team of engineers that will get to know your business. We start with a network assessment to get a comprehensive overview of your IT environment and work with you to help tailor our solutions to your business.

Are managed IT services expensive?

Outsourcing your IT needs is an investment. For most organizations, the value managed IT provides is well worth the cost.

Think about the time and resources it takes to find, hire and retain top-level IT employees. It just makes sense to outsource when you have expert engineers available 24/7 for a fixed monthly cost.

Are managed IT services for small businesses too?

Absolutely. We'll work with you to implement an IT strategy that fits your budget.

Outsourcing your IT needs lets you focus on business growth. Managed IT is perfect if you plan on scaling your business and adding complexity to your network in the future.

What businesses use managed services?

Organizations across all industries are turning to managed service providers for their IT needs.

Every business is an online business now. Aligning business goals and technology helps any organization prepare for future success. 

Technology in the workplace is rapidly evolving and becoming more complex. Managed IT services makes it easy for businesses to stay on top of the latest tech trends and best practices.

Loffler U Thumbnail Minnesota Wild Hockey Loffler Companies IT Managed Services Support Case Study

See Loffler's Managed IT Services in Action at the Minnesota Wild

View the Case Study