Showing posts from June, 2022

Increasing MSP Profit Margins with CentreStack and Triofox

MSP profit margins range from 8-18% from average to best in class. As an MSP owner, you don’t need a Harvard business degree to understand that profit margins are one of the key financial performance indicators that will play a significant role in determining the health and value of your business. Unfortunately, the average MSP have been hovering around 8% for quite some time. For example, Service Leadership  published an article exploring how to accelerate MSP revenue growth. During the discussion, they examined the same set of MSPs across a 5-year period from 2012 to 2017. They found that there was a modest increase in revenue but margin growth essentially remained flat. Source: Service Leadership Newsletter And lest you think things have changed, the latest numbers from Service Leadership highlight the same trend. Average MSP margins are still 8% while the best-in-class MSPs with the highest Operational Maturity Levels only see margins approaching 18%. Cross-Selling to Incre