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Had a talk with a retired MSP owner that changed my view on flat-rate pricing

Met a guy at a trade show in Columbus who said he lost half his client base by charging flat-rate for break-fix. He showed me his numbers from 2019 - margins dropped 15% year over year. Anyone else seen this with their own books?
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2 Comments
brooke_taylor44
Same pattern shows up everywhere, from car repair shops to lawn care guys. People get hooked on the idea of steady money but forget customers hate feeling like they're paying for someone else's slow work.
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val_shah
val_shah6d ago
The thing that finally clicked for me was switching to a flat fee per job with a clear timeline. I used to bill hourly for my handyman service and customers always seemed on edge. When I switched to a set price for each task, they relaxed and I actually got faster because I wanted to move on to the next job. Good customers appreciate knowing the total cost upfront and they don't feel like they're paying for your learning curve. Your regulars will stick around longer too because there's no surprise at the end of the month.
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