Part 2: Paying too much or too little – Pricing (Basics)

When evaluating managed IT and cybersecurity services, pricing is rarely based on just one model. Most providers use a hybrid approach, combining elements of per user, per device, per location, and per organization (brand/domain) pricing to build a complete quote.

Here’s how each component typically contributes to the overall cost—and how they interact:

This is often the foundation of a managed services quote. It covers the support, security, and software for each individual employee. A per-user fee might include:

However, per user pricing rarely covers everything. It usually assumes each user has a standard set of devices and services. If a user has multiple devices or specialized needs, additional charges may apply.

This is often layered on top of per-user pricing—especially for shared devices, servers, or infrastructure equipment. For example:

Some providers include basic device coverage in the per-user fee, but servers and infrastructure are almost always extra.

If your organization has physical offices, you may see a per-location fee to cover:

This fee might be bundled into the overall quote or broken out separately. For remote-first organizations, location fees may be minimal or nonexistent.

This covers services that apply to your entire company or brand, such as:

These are often billed as flat monthly fees and may be bundled or itemized depending on the provider. Some MSPs include basic domain security in their per-user pricing, while others treat it as a separate service.

Many IT managed service providers combine these models to create a tailored quote. For example:

The final quote reflects the total scope of services, not just a single pricing model. That’s why it’s important to request a detailed breakdown even if the provider offers a bundled quote so you understand what’s included and where additional costs may arise.

Some providers simplify billing with a single line item to streamline IT costs, while others may bundle core components (users, devices, locations), or provide full itemized invoices. Each approach has its pros and cons.

Always feel empowered to ask your IT partner to clarify or adjust the invoicing format. Depending on their systems and business model, they may be able to accommodate your preferences or they may be limited by their billing platform.

Learn More:

• Part 1: We compare Break-Fix vs Flat-Rate (Managed) support models and why proactive flat-rate plans often deliver better value.
• Part 2: We break down pricing per device, per user, per location, and per organization (domain), including typical cost ranges and what features influence those prices.
• Part 3: Deeper dive into IT pricing models where we discuss how bundling vs. line-item pricing works, and how contract terms or volume can affect your rates.
• Part 4: We cover the special case of compliance services (e.g. regulatory or security compliance support) – why they can be costly and what they include.
• Part 5: Finally, we provide tips on evaluating IT service providers – what to look for in their reputation, transparency, and service offerings – so you know you’re getting a fair deal for the price.
• Bonus: Is a ball park estimate good enough?