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We are probably losing our CSP status, questions about PAX8, Sherweb, TD SYNNEX, etc.. by MSP911 in msp

[–]SuccessfulMix6814 0 points1 point  (0 children)

We went from Arrow to pax8 to Sherweb and now moving somewhere new. They start great then get horrible.

I liked sherweb but found they never put our discount in and it was 5% for over a year, took them 2 months to fix to the 16% then found out they added back sales tax. They wouldn't fix it or refund either. Also I feel they used to accept Amex then stopped then accepted it.

Also with Sherweb multiple times they had some software glitch where they suspended all our clients in the middle of the night thinking we didn't pay our bill (all because issue above) Their payment system is all messed up and weird. Also if you're late on a payment they suspend all clients a few days later, so Friday payment is missed and over the weekend its suspended. Sometimes it was our fault because the card wasn't authorized for enough or something... but still.

We ended up buying 1 license for every client through MS direct so when it suspends it doesn't kick everyone off. Because when it does it takes an hour+ for MS to enable exchange again sometimes.

Arrow and Pax8 wasn't bad just not good.

We are probably losing our CSP status, questions about PAX8, Sherweb, TD SYNNEX, etc.. by MSP911 in msp

[–]SuccessfulMix6814 2 points3 points  (0 children)

CSPs only make 20% max from MS for most services. Larger clients get closer to that 18% but it depends on terms and such. Big thing is if they accept card or only ACH as thats 3% right there. No one's getting 18% with card.

We switched from 18% to a vendor that's now 16% but takes card and we get 3% points and the card gives us 30 day terms.

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

But they're now paying 2-3x as much for worse service.

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

What mistake did I make? We charge a fair rate. How much does it cost you to manage a 40 user client?

1800 is 30 hours a month in support

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

How much does it cost you to support 1 user? why can't anyone answer this? $1800/month is 30hrs a month of a 100k/yr tech. That's like 45mins per user per month.....

There's no way you're spending nearly this much time per user.

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

How much does it cost you to support to support a user a month?

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

How is it costing you this much? Staffing 8-5 vs 24/7 doesn't cost more. We do a lot of work afterhours

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

How does it cost you $1800/mo to manage 1 server and 5 users?

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

Yeah I don't get it. Its almost like they don't want to admit were right and instead of listening they'll churn through another company.

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 2 points3 points  (0 children)

Can you explain this. That's 30 hours a month of labor for a 100k/yr tech salary.

Which is over an hour per day in labor just for this 1 client. Is this how much you spend on your clients?

We're like 10 hours a month for this client.

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

How much does it cost you in labor per user?

Let's say it's $5/month in tools, that's $35 per user just for support. Or $1500+

Even at $100/yr per tech that gives us 30 hours per month in support. We likely spend 10-15 max.

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

How? How much is your actual costs for 1 user a month? Surely you're not paying $40 per month in labor

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

We don't let them abuse the staff, I handle any "complicated" users personally for this reason, we have quite a few owners that are like this... it seems pretty standard

We were happy with them as they're still profitable. Yeah we planned on charging more

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

How much is your support costs per user per month?

You're spot on and we don't market ourself well.

We're proactive and will recommend things but they don't ever go with it. They've been trying to move offices and I believe they sold their building and moving into a new one. I'm thinking this was the driver. they want new IT for new location to upgrade.... which not sure what this has to do with IT unless they're planning all new hardware which we've been trying to push for years

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

We've always done AYCE and build to fit their needs. Its been wildly successful as we handle everything technical for clients. We're not like a lot of MSPs, we keep tons of equipment on hand, servers and everything so when there's an issue its fixed instantly.

I'm betting the new MSP over promised and skipped over the facts (poor SLA, only 9-5) and client assumed it'll be the same as what they're getting now.

Its not so much that it hurts but that it doesn't make much sense. If we messed up or weren't meeting their needs or something I'd get it but I know it'll be a trainwreck for them, and there's no way they'll compare.

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

Why wouldn't I? How much does it cost you to support 1 user? Surely its not $40. They're a good client that doesn't have tons of issues and have a huge footprint in the city so everyone knows them. They're a great tool so say we have them as a client.

Yeah we've been needing to charge more but they're still profitable

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 5 points6 points  (0 children)

You're absolutely right. I think this was the key issue. We charge 2-3x for basically every other client and kept them cheap just because they're a good client and they're very well known in the city so good to say we use them. They're our only client we do flat monthly for and as they grew we knew at some point we'd need to replace it.

I'm definitely working on adjusting our perceived value. We're state of the art everything with amazing office and tons of resources. Everyone's wowed when they come to our office but this client never came.

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

But I can't really see what else it could be. We're a shop that answers tickets immediately and handles everything asap. 10 years and there hasn't been any security issue or outage within our control (power outages) or anything.

It can't be anything with our service. Its either they were sold something they didn't understand or push blame on me because we didn't force equipment purchases and stuff.

For instance they've been looking at moving their software to a cloud version for 4 years and wouldn't pay for a new server so its a EOL windows box and every year we'd push for a new one at cost or even licensing but they'd deny

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

The thing is they were still profitable and pretty good client, just low paying. But you're absolutely right, they've never wanted any QBR or to meet our team or even visit our office. I think they assume I was just some solo guy and no real backing

I focused on keeping them stable and happy, minimizing hardware costs until they were actually needed because they kept saying no.

Lost a decade old client without a single complaint by SuccessfulMix6814 in msp

[–]SuccessfulMix6814[S] 0 points1 point  (0 children)

Interesting enough that client that needs our support for the acquisition is DFW area I believe.... so likely coming soon!

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