Your MSP just told you they're implementing a 10-user minimum. Or they're pushing a $30,000 infrastructure project. Sound familiar?
You're not stuck. Here's what you need to know.
Traditional MSPs operate on an "all you can eat" business model. They bundle everything together and need high minimums to make small business accounts profitable.
Their legacy partnerships with hardware vendors create another problem. These MSPs get better margins from selling expensive equipment than providing actual service. That's why they push costly server upgrades and network overhauls you probably don't need.
The math is simple: serving a 5-person business costs them almost as much as serving a 25-person business, but generates far less revenue. So they either force minimums or pile on expensive projects to hit their profit targets.
Challenge every requirement. Ask for detailed justification of minimums and project costs. Most MSPs have some flexibility, especially if you're a long-term client. But... then again.. some don't and really do not care about your business.
Break down their bundled services. You might find you're paying for things you don't use or need. This creates leverage for negotiations.
Consider which services you could handle internally or eliminate entirely. Remote monitoring might be essential, but do you really need their help desk for basic password resets?
Get quotes from other providers. Even if you don't switch, competitive pricing gives you negotiating power.
When your MSP insists on expensive infrastructure upgrades, ask these questions:
Many "critical" hardware projects are driven by vendor partnerships rather than your actual needs. A $30,000 server replacement might solve a problem that cloud migration could address for $300 monthly.
Here's what most businesses don't realize: traditional MSPs can't profitably serve small businesses without these constraints.
Their overhead is built for enterprise clients. They maintain expensive offices, large sales teams, and complex service stacks. When they take on smaller clients, they need to either charge enterprise rates or find other ways to boost revenue per client.
That's why they push hardware sales, enforce minimums, and bundle services you don't need. It's not personal; it's their business model.
The technology landscape has changed. Cloud services, automation, and new security tools make it possible to deliver enterprise-grade protection without enterprise overhead.
Look for providers who:
These providers can be profitable serving small businesses because they've built modern, efficient operations from the ground up.
Start with a security assessment to understand what you actually need. Many providers offer free evaluations that give you baseline information for any negotiation or provider switch.
The Digital Dam Assessment takes 5 minutes and shows exactly where your business is vulnerable—without sales pressure or minimum requirements.
Knowledge is power in these conversations. Understanding your real security and technology needs helps you separate genuine requirements from revenue-driven recommendations.
You deserve technology support that scales with your business, not against it. Whether you negotiate with your current provider or find a new one, remember: minimums and forced projects should serve your needs, not theirs.
The best MSP relationship feels like partnership, not vendor lock-in.