The managed services market is projected to reach $6.15 trillion in worldwide IT spending by 2026, according to Gartner’s February 2026 forecast.[1] Grand View Research puts the managed services segment at $401.15 billion in 2025, growing to $847.41 billion by 2033 at a 9.9% CAGR.[2] The opportunity has never been larger.
But here is what the growth numbers do not tell you: 71% of MSPs say acquiring new customers is their top challenge in 2026, according to Kaseya’s State of the MSP Report, which surveyed over 1,000 providers.[3] Only 12% of new clients are first-time MSP buyers. The other 88% are switching from another provider. Growth is no longer about expanding the market. It is about taking someone else’s client.
And the number one reason they switch? It is not technology. It is not security. It is trust — and trust starts with pricing.
The Pricing Trust Gap No One Talks About
ScalePad’s 2026 MSP Trends Report, based on a survey of 1,100+ MSP professionals across North America, found that 60% of MSPs now have a formal Customer Success program, with another 34% planning to build one.[4] The industry is waking up to the fact that relationships drive retention.
But most MSPs are still pricing like it is 2015. Per-device fees that multiply with every new laptop. Per-user costs that climb every time the client hires. Project fees that appear out of nowhere. Licensing pass-throughs with opaque margins. And support tiers that make a basic password reset feel like a luxury purchase.
The result: clients who do not know what they will pay next month. Clients who feel nickel-and-dimed. Clients who start looking for another MSP — not because the service is bad, but because the billing is exhausting.
Kaseya’s research confirms the shift. The share of clients spending more than $25,000 per year dropped from 75% to 41%.[3] Clients are starting smaller and scaling slowly. They are testing the relationship before they commit. And the MSPs that win that commitment are the ones who make it easy to say yes.
What Transparent Pricing Actually Looks Like
This does not mean racing to the bottom on price. It means aligning your pricing model with the value you deliver and making that alignment visible to the client.
The most common MSP pricing models each have a trust profile:
- Per-device pricing — Easy to understand at first, but creates friction every time the client adds equipment. The client feels penalized for growing.
- Per-user pricing — More predictable, and industry benchmarks put the range at $100 to $250 per user per month depending on scope.[5] But tiered per-user models with feature gates can still feel like a cell phone plan designed to confuse.
- All-inclusive flat fee — The simplest for the client to understand and budget for. The risk is on the MSP to scope accurately and manage margins internally.
- Value-based pricing — Tied to business outcomes rather than device counts. Hardest to implement, but the most aligned with where the industry is heading.
The best-performing MSPs in ScalePad’s survey — those with higher MRR, stronger CSAT scores, and lower churn — were significantly more likely to offer vCIO services (42% vs. 29% industry-wide) and to use structured onboarding, regular business reviews, and technology roadmaps.[4] In other words, they priced around the relationship, not the inventory.
The Regulatory Tailwind You Are Not Using
In May 2025, the Federal Trade Commission’s Rule on Unfair or Deceptive Fees took effect, requiring upfront disclosure of total prices including all mandatory fees for live-event ticketing and short-term lodging.[6] While the rule targets specific industries, the signal is clear: the regulatory environment is moving toward price transparency as a consumer right.
MSPs are not directly covered by this rule — yet. But the cultural expectation it reinforces is already shaping how business clients evaluate their vendors. A 2026 consumer trust survey by Reviews.org found that 73% of Americans report their bills have increased in the past year, and the number one frustration is hidden or surprise fees.[7]
Your clients are consumers too. They bring the same expectations to their IT provider that they have for every other vendor: tell me what it costs, tell me before I commit, and do not surprise me.
Three Moves to Make This Quarter
If you want pricing to be a trust-builder rather than a trust-breaker, here are three concrete steps:
- Audit your last 10 invoices from the client’s perspective. Could your client explain what they are paying for without calling you? If not, your pricing model is creating friction you cannot see from your side of the desk.
- Offer a pricing model that scales with value, not just headcount. This does not mean flat-rate everything. It means the client should never feel punished for growing, adding users, or asking for help. Build in predictable thresholds instead of surprise overages.
- Put pricing in the onboarding conversation, not the renewal conversation. The first 90 days set the tone for the entire relationship. If your client understands what they are paying for and why — before the first invoice — you have already differentiated yourself from most of the market.
The MSPs that will win in 2026 and beyond are not the ones with the lowest price. They are the ones with the clearest value. Pricing transparency is not a cost center. It is a competitive advantage.
Frequently Asked Questions
What is the average MSP pricing per user in 2026?
Industry benchmarks range from $100 to $250 per user per month, depending on service scope, company size, and industry-specific needs. Most businesses pay between $150 and $200 per user per month for a comprehensive managed services package.[5]
Why are MSP clients switching providers more often?
Kaseya’s 2026 report found that 88% of new MSP clients are switching from another provider, not buying managed services for the first time. The top barriers to retention are competition (22%) and the inability to demonstrate value quickly (19%). Trust and pricing transparency are primary drivers.[8]
How does pricing transparency affect client retention?
ScalePad’s research shows that MSPs with formal Customer Success programs — which include transparent pricing, regular business reviews, and technology roadmaps — have higher MRR, stronger CSAT scores, and lower churn. 60% of MSPs now have such programs, up significantly from prior years.[4]
Is the FTC hidden fees rule relevant to MSPs?
The FTC’s Rule on Unfair or Deceptive Fees (effective May 2025) currently applies to live-event ticketing and short-term lodging. However, it signals a broader regulatory and cultural shift toward price transparency that is already influencing how business clients evaluate all vendors, including MSPs.[6]
About the author: Brent Lacy has spent over 25 years in the managed services industry, including as Manager at Core Managed since 1997. He is the author of Rewired MSP: Mastery, Scalability & Performance, vCIO Rewired: Virtually Conquering IT Obstacles, and Near Miss: Preventable IT Failures Threatening Your Business. His work focuses on helping MSPs build trust-based, sustainable businesses.
Sources:
- Gartner — “Gartner Forecasts Worldwide IT Spending to Grow 10.8% in 2026, Totalling $6.15 Trillion”, February 3, 2026.
- Grand View Research — “Managed Services Market Size to Reach $847.41 Billion by 2033”, 2025.
- Kaseya Blog — “Why Running Your MSP Feels Harder in 2026 (and What to Do)”, May 11, 2026. Based on the 2026 State of the MSP Report (1,000+ respondents).
- ScalePad Blog — “2026 MSP Trends Report: Key Growth Drivers for Managed Service Providers”, January 29, 2026. Based on survey of 1,100+ MSP professionals.
- MSP Association of America — “How Much Do Managed Service Providers Charge?”
- Federal Trade Commission — “The Rule on Unfair or Deceptive Fees: Frequently Asked Questions”, effective May 12, 2025.
- Reviews.org — “2026 Consumer Trust Survey: 67% Considered Switching ISPs Over Hidden Fees”, 2026.
- MSP Success — “State of the MSP Report Reveals Top Challenges and Revenue Drivers”, May 2026.
