How to Price Managed Security Services (Per User, Endpoint, Tier)
Figuring out how to price managed security services is one of the biggest challenges for MSSP business owners. Charge too little, and you leave money on the table or risk burnout. Charge too much, and you lose clients to competitors. In today’s market, simply quoting an hourly rate is often insufficient and doesn’t reflect the true value your expertise and continuous protection provide.
This article dives into practical strategies for pricing your MSSP services in 2025, covering popular models like per-user, per-endpoint, and tiered packages. We’ll help you understand the fundamentals, build profitable structures, communicate your value effectively, and explore tools to streamline the pricing presentation process.
Why Traditional MSSP Pricing Models Fall Short
Many MSSPs started with familiar IT support pricing models, such as hourly rates or simple per-device charges. While easy to understand initially, these often fail to capture the nuanced value of modern cybersecurity services.
- Hourly Billing: Punishes efficiency. Clients may question costs for routine tasks, and it doesn’t account for the proactive, preventative measures that stop incidents.
- Simple Per-Device: Doesn’t differentiate based on the type of device (server vs. workstation vs. mobile), the complexity of the environment, or the specific security services applied.
- Flat Rate (without clear scope): Can lead to scope creep and unprofitable engagements if the client’s needs or environment complexity weren’t thoroughly assessed upfront.
Moving beyond these requires a focus on packaging value and aligning your pricing with the client’s desired outcomes: reduced risk, improved compliance, and peace of mind.
Core MSSP Pricing Models Explained
Modern MSSP pricing typically revolves around a few key models, often combined or layered:
Per-User Pricing
- Description: Charging a flat monthly fee per individual user in the client’s organization.
- Pros: Simple for clients to understand and forecast. Scales predictably as the client grows (or shrinks). Accounts for the primary target of many security threats (users).
- Cons: Doesn’t always reflect the complexity of the environment or the number/type of devices. Can be harder to apply to shared accounts or systems without direct ‘users’.
- Best For: Businesses with consistent user counts, offering services like endpoint protection, security awareness training, identity management, email security.
- Example Range (Illustrative): $10 - $50+ per user per month, depending on services included.
Per-Endpoint Pricing
- Description: Charging a flat monthly fee per device (computer, server, mobile device, network device) being managed and secured.
- Pros: Directly ties pricing to the assets being protected. Easy to inventory and audit. Useful for hardware-centric security services.
- Cons: Doesn’t account for user behavior or threat intelligence layers. Can become complex with BYOD policies or virtual environments. Doesn’t scale directly with human risk.
- Best For: Foundational security services like EDR/XDR, vulnerability management on specific assets, device compliance.
- Example Range (Illustrative): $15 - $75+ per endpoint per month, depending on the type of endpoint and services.
Tiered or Packaged Pricing
- Description: Offering multiple service bundles (e.g., ‘Basic Security’, ‘Advanced Protection’, ‘Compliance Pro’) at different price points. Each tier includes a defined set of services.
- Pros: Provides clear options for clients. Allows for upselling based on client needs and risk tolerance. Simplifies the sales conversation by presenting solutions, not just components. Enables easier comparison.
- Cons: Requires careful structuring to avoid overlaps or gaps. Clients may try to cherry-pick services.
- Best For: Combining multiple security services into logical offerings that address different client segments or risk profiles.
Value-Based Pricing
- Description: Pricing based on the value your services deliver to the client (e.g., cost of downtime prevented, regulatory fines avoided, reputation protected), rather than solely on your costs or effort.
- Pros: Maximizes profitability by aligning price with perceived client benefit. Positions you as a strategic partner, not just a vendor. Allows for higher pricing when solving critical, high-value problems.
- Cons: Requires deep understanding of the client’s business and potential risks. Can be harder to quantify the value upfront. Requires confidence and skill in communicating value.
- Best For: Engagements where you solve a specific, high-impact security problem or help a client achieve a critical business outcome (like meeting strict compliance mandates).
Building Your MSSP Pricing Foundation: Costs and Value
Before you can effectively price how to price managed security services, you must understand your own costs and the value you create.
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Calculate Your Costs: Detail all expenses associated with delivering a service.
- Direct Costs: Software licenses (EDR, SIEM, vulnerability scanners), vendor support fees, specific hardware.
- Labor Costs: Technician time, security analyst time, management overhead (fully burdened, including benefits, taxes, etc.).
- Operational Costs: Tools for RMM (if integrated), PSA, ticketing systems, office space, utilities, insurance.
- Sales & Marketing Costs: Cost of acquiring a client.
Understanding your total cost allows you to set a profitable floor for your pricing.
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Identify Your Unique Value Proposition: What makes your MSSP different? Is it deep expertise in a specific compliance framework (e.g., HIPAA, CMMC)? A proprietary threat intelligence feed? Exceptional response times? A specific technology stack? A focus on a particular niche (e.g., healthcare, manufacturing)? This value justifies higher pricing.
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Quantify Client Outcomes: Instead of just listing features (e.g., ‘we install EDR’), explain the benefit (e.g., ‘reduce risk of ransomware by X%’, ‘ensure compliance with Y standard’, ‘save Z hours of downtime annually’). This is crucial for value-based pricing and communicating worth in tiered packages.
Structuring Profitable MSSP Packages and Add-ons
Tiered packaging is a powerful way to structure how to price managed security services and increase average client value.
- Define Tiers: Create 3-4 distinct packages (e.g., Bronze, Silver, Gold, Platinum or Foundational, Enhanced, Premium). Each tier should build upon the last, offering increasing levels of service, protection, and proactive engagement.
- Anchor Pricing: Strategically place your most desired package (often the middle tier) to make the higher tiers seem more valuable and the lower tiers less complete. Consider using prestige pricing for your top tier.
- Add-ons: Offer optional services that clients can add to their chosen package. This allows for customization and captures revenue for specialized needs. Examples include penetration testing, specific compliance audits, advanced dark web monitoring, or dedicated security training sessions.
- Pricing the Tiers: Price each tier based on the cumulative value and cost of the services included. The jump in price between tiers should be justified by the added value.
Presenting these multi-tiered options and add-ons clearly to clients can be challenging with static quotes. This is where a tool designed specifically for interactive pricing shines. A platform like PricingLink (https://pricinglink.com) allows you to build configurable pricing pages where clients can select a base tier and add optional services, instantly seeing how the price changes. This simplifies complex offerings and provides a modern, transparent experience.
Communicating MSSP Pricing and Closing Deals
How you present your pricing is almost as important as the price itself.
- Thorough Discovery is Key: Never quote without a detailed understanding of the client’s environment, risks, compliance requirements, budget, and business goals. Use this information to recommend the most appropriate package.
- Focus on Value, Not Just Cost: Frame your pricing discussion around the problems you solve and the value you provide (risk reduction, compliance, uptime, peace of mind). Use the outcomes you identified earlier.
- Present Options Clearly: Don’t overwhelm clients. Present the recommended tier first, then show the others for comparison. Clearly list what is included in each tier and what the add-ons cover.
- Address Objections: Be prepared to discuss the investment and justify your value. Use social proof (case studies, testimonials) where possible.
- Use Modern Pricing Tools: Forget static PDFs or spreadsheets. Tools that allow for interactive configuration make complex pricing easy for the client to digest and engage with. As mentioned, PricingLink (https://pricinglink.com) is built specifically for this, offering shareable pricing links where clients can configure their service package and see the total price update in real-time.
While PricingLink excels at interactive pricing presentation, remember it is focused solely on this step. For full proposal generation including detailed scope descriptions and e-signatures, you would need dedicated proposal software. Consider options like PandaDoc (https://www.pandadoc.com), Proposify (https://www.proposify.com), or other PSA systems that have built-in proposal features.
Putting it Together: Example MSSP Pricing Structure (Illustrative)
Here’s a simplified example combining different models for how to price managed security services for a small business (25 users, 50 endpoints total - a mix of workstations and servers).
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Foundational Security Tier (Per User): $30/user/month = $750/month
- Includes: Managed EDR (Endpoint Detection & Response) per user device, basic security awareness training module, DNS filtering, basic threat intelligence monitoring.
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Enhanced Security Tier (Foundational + Per Endpoint): $30/user/month + $20/endpoint/month (for servers) = $750 + ($20 * 5 servers) = $850/month
- Includes: Everything in Foundational PLUS advanced server security monitoring, vulnerability scanning on servers, log collection from critical devices.
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Premium Security Tier (Enhanced + Value-Based Add-ons): $30/user/month + $20/endpoint/month + Value-Based Fees = $850/month + $500 (Compliance management fee) = $1,350/month
- Includes: Everything in Enhanced PLUS managed firewall (SaaS), proactive security posture assessments, assistance with specific compliance reporting (e.g., HIPAA safeguards documentation - priced for the value of meeting compliance).
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Optional Add-ons:
- Phishing Simulation Campaigns: $5/user/month
- Dark Web Monitoring (specific executives): $25/executive/month
- Incident Response Retainer: Custom Quote
This example demonstrates how you can layer per-user and per-endpoint models within tiers and add value-based components or optional add-ons. Presenting these options effectively is crucial.
Conclusion
Mastering how to price managed security services is essential for the profitability and growth of your MSSP.
Key Takeaways:
- Move beyond simple hourly or basic per-device rates to better reflect the value of cybersecurity.
- Understand your costs thoroughly to set profitable pricing floors.
- Structure pricing using models like per-user, per-endpoint, and tiered packages.
- Always conduct thorough discovery before quoting.
- Focus on communicating the value and outcomes you provide (risk reduction, compliance, etc.).
- Use interactive tools to make complex pricing clear and engaging for clients.
By implementing modern pricing strategies, you can ensure your revenue accurately reflects the continuous protection and expertise you deliver. Leveraging platforms designed to simplify complex pricing presentations, like PricingLink (https://pricinglink.com), can help you confidently present tiered services, add-ons, and recurring fees in a way clients easily understand and engage with, ultimately streamlining your sales process and potentially increasing deal size. Invest time in refining your pricing model – it’s one of the most impactful strategic decisions you’ll make for your MSSP.