Pricing IT Services in Northeast Ohio

Pricing IT services in a regional market is different from coastal pricing. Northeast Ohio isn't San Francisco or New York. The businesses here have different budgets, different expectations, and different relationships with their service providers.

Here's what I've learned about pricing managed services, project work, and hourly support in this market.

The Market Reality

Average business size: Most of my clients are 5-50 employees. Manufacturing, professional services, medical practices, local retail. They're not startups flush with venture capital. They're established businesses watching their bottom line.

Competition: The market has everything from one-person IT consultants charging $50/hour to national MSPs with polished sales teams. You're competing on price, service quality, and relationship simultaneously.

Expectations: Clients expect personal service. They want to call you directly when something breaks. They don't want to submit a ticket and wait for someone they've never met. Relationship matters here more than in larger markets.

Managed Services Pricing

Per-User vs Per-Device

Both models work. I've landed on per-user for most clients.

Per-user advantages:

• Simpler to quote and invoice
• Covers user regardless of how many devices they use
• Easier for client to understand and budget

Per-device advantages:

• Fair for clients with minimal devices per user
• Works better for manufacturing/warehouse (shared workstations)

My current structure:

Standard Managed Services: $125-175/user/month

Includes:

• Remote monitoring and management (RMM)
• Patch management (Windows, common applications)
• Antivirus/EDR (SentinelOne or similar)
• Email security filtering (IronScales)
• Basic backup (cloud backup for workstations)
• Unlimited remote support
• On-site support (reasonable amount, tracked)
• Quarterly review meetings

The range depends on complexity. A professional services firm with standard Office work is at the lower end. A medical practice with HIPAA requirements and specialized software is at the higher end.

What's not included (billed separately):

• Projects (new server, migrations, network upgrades)
• Hardware procurement
• Third-party software licensing
• After-hours emergency support (if excessive)
• Compliance consulting (HIPAA, CMMC assessments)

Minimum Monthly Commitment

I have a minimum monthly fee, typically equivalent to 5 users. Taking on a 2-person office at per-user rates doesn't make sense when you factor in onboarding, documentation, and the baseline time required regardless of size.

For very small clients, I offer a simplified "essential support" package at a flat monthly rate that covers basics without full MSP services.

Project Work Pricing

Hourly vs Fixed Bid

Hourly works for:

• Discovery/assessment work
• Troubleshooting undefined problems
• Ongoing advisory work
• Small, variable-scope tasks

Fixed bid works for:

• Well-defined projects with clear deliverables
• Migrations with known source and destination
• Hardware deployments
• Network infrastructure projects

My hourly rates:

• Remote support: $125/hour
• On-site support: $150/hour
• After-hours/emergency: $200/hour

These are for non-managed clients or project work outside managed agreements. Managed clients get remote support included; on-site is tracked and included to a reasonable amount.

Project Pricing Examples

Server deployment (new physical or VM):

• Hardware procurement: Cost + 15% markup
• Configuration and deployment: $1,500-3,000 depending on complexity
• Includes: OS install, domain join, roles/features, documentation

M365 migration (small org, 10-20 users):

• $2,500-4,000 flat fee
• Includes: Tenant setup, user migration, DNS cutover, workstation config
• Doesn't include: Additional onboarding training, custom app config

Network infrastructure (new office buildout):

• Hardware: Cost + markup
• Design and configuration: $2,000-5,000
• Installation: Often subcontract cabling, quote separately
• Includes: Firewall, switches, WiFi, documentation

VPN setup:

• Remote access VPN (existing firewall): $500-1,000
• Site-to-site VPN: $1,000-2,000 (depends on hardware involved)

Quoting Process

1. Discovery call (free for potential managed clients, hourly for project-only)
2. Document current state and requirements
3. Create detailed scope of work
4. Fixed quote with clear assumptions and exclusions
5. 50% deposit for new clients, net 30 for established

I don't give ballpark pricing anymore. Too many clients hear "$5,000-8,000" and remember "$5,000." Detailed quotes take time but prevent scope disagreements.

Hardware Markup

My approach: 10-15% on hardware, sometimes zero for managed clients.

Margins on hardware aren't where I make money. I'd rather sell the right solution at a fair price and make my money on services. Overcharging on hardware damages trust.

What I mark up:

• Servers and workstations (from authorized distributors)
• Network equipment (firewalls, switches, APs)
• Accessories and peripherals

What I sell at or near cost:

• Software licensing (margins are thin anyway)
• Cloud services (M365, etc.)
• Commodity items (cables, adapters)

Preferred vendors (distributor pricing):

• Ingram Micro
• Tech Data (TD Synnex)
• D&H

Never buy client hardware from Amazon or Best Buy. Distributor pricing is usually better, and you get warranty support appropriate for business use.

Pricing Mistakes I've Made

• Underpricing to win clients: Won business at rates that didn't support the service level expected. Either lost money or had to have awkward conversations about raising rates. Start at sustainable rates.
• Not charging for scope creep: "While you're here, can you also look at..." turned into hours of free work. Now I document scope clearly and politely note when something is outside our agreement.
• Free discovery for everyone: Spent hours assessing environments for prospects who were shopping price. Now, paid assessments for project work, free discovery only for managed service prospects who seem serious.
• Hourly support for cheap clients: Some clients want hourly support because they think it's cheaper than managed services. Then they complain about invoices when they call frequently. These relationships rarely work. Better to walk away.
• Not raising rates: Kept legacy clients at 2019 rates into 2023. Meanwhile, my costs increased. Now I do annual rate reviews and communicate increases proactively.

Competitive Positioning

Against cheaper competition:

Don't compete on price with the "$50/hour nephew" or break-fix shops. Compete on reliability, documentation, and proactive management. The conversation is "you'll call them when things break; we prevent things from breaking."

Against national MSPs:

Local presence, personal relationship, faster response. "When you call, you get me. Not a ticket queue."

Against internal IT:

For small businesses, internal IT is expensive (salary, benefits, training) and creates single-point-of-failure. MSP provides coverage, current knowledge, and variable cost.

Red Flags in Pricing Discussions

• "Our last IT guy only charged $40/hour." Their last IT guy is gone for a reason. This client prioritizes cheap over good.
• "We don't need a contract, we'll just call when we need you." They want the benefits of managed services without commitment. Break-fix clients are fine, but set expectations accordingly.
• "Can you match [competitor's] price?" I don't race to the bottom. I explain what I provide and why it costs what it does. If they want cheaper, they can get cheaper.
• "We need you to include unlimited projects in the managed fee." Managed services covers ongoing support. Projects are separate. This client will consume unlimited resources if you let them.

Having the Money Conversation

Be direct about pricing. Hemming and hawing makes you look unsure of your value.

What I say:

• "Our managed services start at $X per user per month."
• "A project like this typically runs $X to $Y depending on [variables]."
• "I can give you an exact quote after we do discovery."

What I don't say:

• "It depends..." (without explaining what it depends on)
• "We're very flexible on pricing." (you're not, and this invites lowball expectations)
• "I'll have to sharpen my pencil." (cringe)

Current Market (2025-2026)

Post-pandemic, prices have increased everywhere. My rates are up 15-20% from 2021, and nobody has complained more than briefly. Costs increased, and clients understand that.

Cybersecurity concerns have also increased willingness to pay. Ransomware stories in the news make the "invest in prevention" conversation easier.

That said, not every business can afford premium IT services. Smaller businesses might need a more limited scope. That's okay—offer what they can afford and be clear about what's not included.

Final Thoughts

Price for the business you want to run, not the business you think clients will accept. Too cheap, and you attract price shoppers and can't deliver quality. Too expensive for this market, and you won't have clients.

Find the middle ground where you can deliver excellent service, make a fair profit, and keep clients who value what you provide. In Northeast Ohio, that's possible—you just have to be honest about what things cost and what value you're providing in return.