When a company ends its relationship with a Managed Service Provider (MSP), “price” often takes the blame.
On paper, it makes sense: who doesn’t want to save money? But in reality, price is rarely the real reason businesses part ways with their IT provider.
The truth is more complicated. And if you believe cost alone is the driver, you might overlook the underlying issues that actually need to be addressed.
The Price Myth
Here’s how it usually goes:
A business leader tells the MSP, “We’re moving to a less expensive provider.”
The new provider’s quote is lower… at first.
But within a few months, the invoices creep up, “add-on” fees appear, and costs for downtime or emergency fixes blow past any perceived savings.
The real reason the company left? They lost trust, got fed up with poor performance, or outgrew their provider’s capabilities. Price was just the most comfortable excuse to put on the record.
Why Price is a Convenient Scapegoat
- It’s Impersonal — Saying “we can’t afford you” feels less confrontational than listing failures.
- It Avoids Conflict — Price lets both sides walk away without an ugly blame game.
- It’s Hard to Argue With — If someone says they can’t pay, there’s no debate about whether they’re “wrong.”
The downside? The real problem goes unspoken — and often follows the business into the next MSP relationship.
The Hidden Costs of “Cheaper” IT
Choosing an MSP based on price alone can cost you more in the long run:
- Downtime from poorly executed changes or missed maintenance
- Security breaches from outdated tools and weak practices
- Missed opportunities when the MSP can’t deliver proactive upgrades or strategic guidance
- Higher project fees because “budget” MSPs often price low on contracts but charge premium rates for everything outside scope
When “We Can’t Afford Them” is Actually True
There’s one legitimate scenario where price really is the deciding factor:
Your business is shrinking and truly can’t meet the minimum service requirements of your provider.
Even then, the right approach isn’t to hunt for a bargain MSP; it’s to have a frank conversation with your current provider about scaling back services temporarily or finding creative solutions that preserve critical protection.
The Real Question to Ask
Instead of “Can we get this cheaper?”, ask:
“Are we getting the right value for what we’re paying?”
If the answer is no, dig deeper:
- Has trust been broken?
- Are they consistently missing performance expectations?
- Have your needs grown beyond their capabilities?
These are the issues worth solving—whether that means realigning with your current provider or making a well-planned switch.
Bottom line:
Price is easy to point to, but it’s rarely the root cause of an MSP breakup. If you want to protect your business and avoid jumping from one disappointing provider to another, focus on value, trust, and capability, not just the number at the bottom of the invoice.
Need help figuring out if you’re really getting your money’s worth?
Our MSP Performance Assessment model can help uncover whether you’re paying for service that truly matches your needs. Download the book for more information.
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