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Summary
In this conversation, Craig Willard discusses the challenges and implications of bundling Microsoft 365 with managed services. He argues that while bundling may seem convenient, it can lead to complications with pricing, renewals, and profit margins. Willard advocates for separating licensing from service rates to maintain financial health and transparency with clients. He outlines a structured approach for MSPs to manage Microsoft 365 licenses effectively while ensuring clear communication and stable pricing for clients.
Takeaways
Bundling Microsoft 365 can create pricing and renewal issues.
Separating licensing from service rates improves financial clarity.
Maintaining a standard Microsoft configuration is crucial for control.
Charging a management fee for Microsoft services is essential.
Clients appreciate transparency in billing and services.
Separation leads to smoother onboarding and contract management.
Your margins should ideally be around 70% or better.
Bundling can inflate service rates and complicate contracts.
Clear communication with clients about pricing changes is vital.
Separating software costs helps maintain profitability.
Chapters
00:00 Intro
00:46 Why Bulding Feels Easy …. Until It Isn’t
02:32 How We Do It – Standards, Separation, and Control
02:39 Implementing a Standard Microsoft Configuration
03:06 What Happens When You Separate It
03:35 What Happens When you Separate M365 From Your Services
04:23 Transitioning Current Clients
04:40 How To Explain This To Your Clients
05:17 Handling Pushback
06:08 Transitioning Current Clients
06:50 Real World Wins
06:59 Conclusion: The Path to Profitability
07:21 Closing
(Source: YouTube Channel MSP After Hours)
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