{"id":54167,"date":"2024-04-25T10:08:51","date_gmt":"2024-04-25T09:08:51","guid":{"rendered":"https:\/\/www.n-able.com\/?p=54167"},"modified":"2025-08-28T10:14:28","modified_gmt":"2025-08-28T09:14:28","slug":"a-quick-msp-guide-to-pricing-security-with-a-focus-on-n-able-mdr","status":"publish","type":"post","link":"https:\/\/www.n-able.com\/de\/blog\/a-quick-msp-guide-to-pricing-security-with-a-focus-on-n-able-mdr","title":{"rendered":"A Quick MSP Guide to Pricing Security\u2014With a Focus on MDR"},"content":{"rendered":"<p class=\"p1\"><span class=\"s1\">It\u2019s almost a weekly occurrence where I inevitably receive an email or LinkedIn message from an MSP asking about pricing. And I seem to get this question more frequently whenever we launch a new product. Since launching our newest solution\u2014<a href=\"https:\/\/www.n-able.com\/products\/managed-detection-and-response\" target=\"_blank\" rel=\"noopener\"><span class=\"s2\">Adlumin MDR<\/span><\/a>\u2014the pricing question has become almost a daily occurrence.\u00a0<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Questions like:<\/span><\/p>\n<ul>\n<li class=\"p2\"><span class=\"s1\"><i>\u201cWe are interested in MDR, but we are not quite comfortable yet on the retail costing model and it\u2019s holding us back a bit from going to market.\u201d<\/i><\/span><\/li>\n<li class=\"p2\"><span class=\"s1\"><i>\u201cDo you have any material around go-to-market pricing\/packaging on MDR?\u201d<\/i><\/span><\/li>\n<li class=\"p2\"><span class=\"s1\"><i>\u201cMy customer is interested in MDR, but I\u2019m not sure how I should be pricing it.\u201d<\/i><\/span><\/li>\n<\/ul>\n<p class=\"p1\"><span class=\"s1\">So given the excitement and the quick <a href=\"https:\/\/www.n-able.com\/blog\/key-considerations-when-choosing-an-mdr-provider-for-msps\" target=\"_blank\" rel=\"noopener\">adoption of MDR<\/a> that MSPs are having, I thought it might be helpful to dedicate this month\u2019s blog article to addressing their pricing inquiries. And although I\u2019ll be referencing Adlumin MDR in this article, the guidance being provided can be applied to ANYTHING an MSP might be trying to sell. Because when it comes to figuring out the pricing of any product or solution that an MSP wants to take to market\u2014not just MDR\u2014the first question I always ask is:<\/span><\/p>\n<h2 class=\"p4\"><span class=\"s5\"><b>Who are you selling to?<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">Depending on what type of organization you are selling to, it will help to determine what you should be charging for the new product or solution you are introducing.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">When looking at the MSP space, there are two distinct customer types that MSPs could be selling to:<\/span><\/p>\n<ul>\n<li class=\"p2\"><span class=\"s1\"><b>A Traditional Managed Services Customer<br \/>\n<\/b>This is defined as an organization where there is no dedicated, internal IT administrator in-house, so your MSP acts as their outsourced IT department, and therefore assumes 100% responsibility for the care, maintenance, and protection of their network.<\/span><\/li>\n<li class=\"p2\"><span class=\"s1\"><b>A Co-managed IT Services Customer<\/b><\/span><span class=\"s5\"><b> <\/b><\/span><span class=\"s1\"><b><br \/>\n<\/b>This is defined as an organization where there IS an IT administrator or IT department in existence within the organization, and so it is that person or that IT department who is then ultimately responsible for the care, maintenance, and protection of the organization\u2019s network\u2014not the MSP. In a co-managed IT services model, the MSP offers to help out and fill a void by taking over the management of one or two key functions or specific components, but not the entire network environment.<\/span><span class=\"s5\"><b>\u00a0<\/b><\/span><\/li>\n<\/ul>\n<p class=\"p1\"><span class=\"s1\">And this is an important distinction to make, because depending on what type of organization you are targeting, whether there is the presence of an internal IT administrator or not, that will determine what you ultimately will sell them and consequently what you will charge them.\u00a0<\/span><\/p>\n<h2 class=\"p5\"><span class=\"s1\"><b>Pricing for the Traditional Managed Services Customer<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">Let\u2019s look at the traditional managed services customer first.\u00a0<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">With this type of customer, you wouldn\u2019t price and sell MDR (or EDR ; or Backup etc.) as an individual service, all on its own. Rather, you would include MDR as part of your top-tier layered security program.\u00a0<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">In my boot camp, <a href=\"https:\/\/attendee.gotowebinar.com\/recording\/692016564471339872\" target=\"_blank\" rel=\"noopener\"><span class=\"s2\">\u201cThe Guide to Building Security Programs\u201d<\/span><\/a><\/span><span class=\"s2\">,<\/span><span class=\"s1\"> I refer to this package as your Advanced Security Program, and it\u2019s the package that you would offer to any medium- to high-risk organization that resides in a regulated industry that has compliance standards it needs to adhere to. \u00a0If the customer you are speaking with is required to demonstrate and prove compliance, then the Advanced Security Program is the package you should be positioning to them, and I generally see that program level start at around US$200-US$275\/user\/month. But I have also seen it offered as high as US$400\/user\/month by some MSPs.\u00a0<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And in <a href=\"https:\/\/register.gotowebinar.com\/recording\/692016564471339872\" target=\"_blank\" rel=\"noopener\"><span class=\"s2\">my boot camp<\/span><\/a>, I review what the security tech stack generally looks like for this type of program, as it includes a wide variety of other security toolsets, labor, and services beyond just MDR. MDR (or EDR or Backup etc.) isn\u2019t sold in a silo when it comes to a traditional Managed Services customer, they are bundled together and sold as part of an overall package of security services, because you are accepting the responsibility and the risk that comes from managing and protecting an organization\u2019s network environment. And if you are accepting that risk, then you will need to implement a layered approach with respect to their security, because no singular product can provide the required protection coverage from cyber-attacks.\u00a0<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So in this case, MDR is that final layer that gets added to provide deeper visibility, and heightened threat hunting and detection services, as it can help provide a faster mean time to incident detection\u2014thereby providing a faster mean time to response and a faster mean time to remediation for those organizations that can\u2019t tolerate lengthy downtime and where the breach impact needs to be minimized.\u00a0<\/span><\/p>\n<h2 class=\"p5\"><span class=\"s1\"><b>Things are Different for the Co-managed Customer Though\u2026.<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">But pricing is looked at differently when you are speaking with a co-managed IT services client. In this type of scenario, it is absolutely appropriate to sell your services in an a la carte format. MDR could be sold separately to an organization, because in the co-managed model you are just helping out by augmenting the in-house IT team and providing a service that your MSP will manage that\u2019s designed to strengthen their overall security posture.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Your MSP is not in charge of the organization\u2019s network like you are for a traditional managed services customer, the internal IT Director is. So in this case, I see MSP\u2019s charging a minimum of $90USD\/user\/month, and this generally would include both EDR on the endpoint and MDR as the wrapper service to protect the rest of the network.\u00a0\u00a0<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b><i>If you are interested in learning more about how to build and market a co-managed MDR service, then be sure to register for my upcoming <\/i><\/b><a href=\"https:\/\/www.n-able.com\/events\/page\/2?filter_event-type=head-nerd-event\" target=\"_blank\" rel=\"noopener\"><span class=\"s2\"><b><i>co-managed boot camps<\/i><\/b><\/span><\/a><b><i> where I will go into greater detail on what a program like this would include.<\/i><\/b><\/span><span class=\"s1\">\u00a0<\/span><\/p>\n<h2 class=\"p1\"><span class=\"s1\"><b>Designing Your Pricing Schemes<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">So it is important to recognize who you are selling to so that you can design your pricing schemes correctly, because when done appropriately, it can have a profound impact on your MRR, average deal size, and your overall managed services revenue.\u00a0<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Let\u2019s use a car analogy to hopefully drive this point home further.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Let\u2019s say there are two dealerships who are selling the same make of car. Dealership #1 only sells the fully loaded model, while Dealership #2, which sells the same make, doesn\u2019t sell just the fully loaded model, but also sells lower-level models as well, as they allow their customers to pick and choose the features they want to pay for.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">In most cases, Dealership #1, who sells only the fully loaded model, will generate higher revenues and will grow faster than Dealership #2. And that is because, with practice, it doesn\u2019t take any more effort to close a fully loaded model deal, than it does to close a deal for a lower-end model that is missing features. The effort of the salesperson is pretty much the same\u2014assuming the sales acumen and sales talent is there.\u00a0<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So if you are going to spend your time creating a marketing and sales campaign targeted at the traditional managed services customer, that just focuses on selling MDR, or EDR, or backup on its own, in a non-bundled way, then you are wasting your sales opportunity. If you are going to go through all of that effort and expense anyways, why not put that time and energy into selling a bundled set of services (like your Advanced Security Program) that provides higher value, improved security coverage, and improved cyber resiliency protection?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">This is the difference between making this a technical sale, where you are just reselling a toolset, which offers only minimal levels of profitability, versus turning this into a value-based sales motion, where you can charge higher prices. Because if you are going to engage with a traditional managed services prospect anyway, then you don\u2019t want to waste the opportunity before you. Leverage the opportunity to speak to your customer about your Advanced Security Program and not just a singular product, and benefit from higher contract values and improved MRR, while also working towards reducing and mitigating your risk as their MSP.\u00a0<\/span><\/p>\n<p class=\"p6\"><em>Stefanie Hammond is Head Sales and Marketing Nerd at N\u2011able. <a href=\"https:\/\/www.linkedin.com\/in\/stefanie-hammond\/\" target=\"_blank\" rel=\"noopener\">You can follow her on LinkedIn<\/a><\/em><span class=\"s1\"><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As an MSP, bringing a new product into your tech stack will inevitably bring up questions around pricing. Stefanie Hammond provides a blueprint for getting it right.\u00a0<\/p>\n","protected":false},"author":64,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"class_list":["post-54167","post","type-post","status-publish","format-standard","hentry","topic-head-nerds","topic-security"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>A Quick MSP Guide to Pricing Security\u2014With a Focus on MDR - N-able<\/title>\n<meta name=\"description\" content=\"As an MSP, bringing a new product into your tech stack will bring up pricing questions. 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