What Should IT Services Actually Cost? | Managed IT Services

And what are you getting for that price anyway?

Here's what usually happens: Your network goes down at 2pm on a Tuesday. Production stops. Your internal team scrambles. You call your IT provider. They say they'll 'look into it.' Three hours later, you're still down, and when the bill comes, there's a line item for 'emergency response' that costs more than your monthly fee.

Sound familiar?

The problem isn't just what IT costs. It's that most pricing models hide what you're actually paying for until something breaks. Then you find out the hard way that 'included' support doesn't cover the things that matter most when your operation is down.

Let's fix that. Here's what IT services actually cost, what you should expect for that price, and how to know if you're getting value or just getting billed.

Why IT Service Pricing Is So Confusing

Most IT providers price the same way lawyers do: by the hour, after the fact, with vague explanations of what those hours actually covered. You get an invoice that says '8 hours troubleshooting' and you're left wondering if that was efficient or if someone was just clicking around hoping to stumble on the fix.

Here's what we hear from operations leaders:

• "We can't compare vendors because everyone prices differently."
• "We're on a monthly plan, but we still get surprise charges every quarter."
• "Our IT person is great, but we have no idea if we're overpaying or if this is normal."
• "We asked for a quote on upgrading our servers and got three different numbers from the same provider."

The confusion isn't accidental. Vague pricing protects providers from accountability. If you don't know what you're supposed to be getting, you can't complain when you don't get it.

The Hidden Costs of Low-Price IT Support

Low monthly fees look attractive until you realize what's not included. Here's what actually happens when you go with the lowest bidder:

Your downtime costs more than you're saving.

A $500/month IT plan sounds great until your network drops for four hours and you lose $20,000 in productivity. The provider shows up eventually, patches the immediate problem, and leaves. A week later, it happens again. Same root cause, different symptom.

Your team becomes your de facto IT department.

When your IT provider only responds to emergencies, everything else falls to your operations manager or office admin. They're resetting passwords, troubleshooting printer issues, and trying to figure out why the new hire's laptop won't connect to the server. That's not what you hired them to do.

Security gaps stay invisible until they're not.

Cheap IT rarely includes proactive security monitoring. Your firewall might be five years out of date. Your backups might not actually work. You won't know until something goes wrong, and by then, you're dealing with ransomware, not prevention.

The lowest price isn't a deal if it doesn't solve the problems you're actually paying to avoid.

What's Included in Managed IT Service Agreements?

There are three common ways IT providers charge. Each has trade-offs. None of them are inherently bad, but it depends on what your operation needs.

Break/Fix IT Support: Hourly Billing Model

How it works: You call when there's a problem. They bill by the hour.

Typical cost: $100–$250 per hour

What you get: Emergency response. Reactive fixes. No ongoing maintenance or monitoring.

Best for: Small operations with minimal technology needs and an internal IT person who handles day-to-day issues.

The catch: Costs are unpredictable. Problems compound because nothing is proactively maintained. A server failure could cost $5,000 in one month and nothing the next.

Pro tip: If your operation depends on uptime, break/fix is a gamble. You're paying for firefighting, not prevention.

Managed IT Services: Predictable Monthly IT Support Costs

How it works: Fixed monthly cost. Your provider monitors, maintains, and supports your infrastructure.

Typical cost: $100–$250 per user per month (varies by complexity and service level)

What you get: 24/7 monitoring, help desk support, patch management, cybersecurity basics, regular maintenance, strategic planning.

Best for: Growing operations where downtime costs more than the monthly fee. Businesses that need predictable IT costs and proactive maintenance.

The catch: Can feel expensive if you're not actively using all services. Requires trust that the provider is actually monitoring and maintaining as promised.

Pro tip: Most mid-sized operations benefit from managed services because the cost of preventable downtime exceeds the monthly fee. The key is finding a provider who's transparent about what's included.

Project-Based IT Services: Fixed-Price Infrastructure Upgrades

How it works: You pay a set price for a specific deliverable—server migration, network upgrade, cloud transition.

Typical cost: $5,000–$50,000+, depending on scope

What you get: Scoped outcomes. Clear timeline. Defined deliverables.

Best for: One-time infrastructure changes or upgrades that don't require ongoing support.

The catch: Costs balloon if scope isn't clearly defined upfront. Hidden complexity often emerges mid-project.

Pro tip: Project-based pricing works when both sides are clear on what 'done' looks like. Good providers scope carefully and communicate scope changes before billing.

What Should Be Included in Managed IT Services?

Here's where most confusion happens. Providers advertise 'managed services,' but what that actually includes varies wildly. Some charge one flat fee that covers everything. Others nickel-and-dime you with add-ons.

Here's what should be included in any legitimate managed services agreement:

• Help desk support — Fast response when users need help (not 'we'll get to it next week')
• 24/7 monitoring — Proactive alerts before problems take down your operation
• Patch and software management — Keeping systems current without disrupting your workday
• Cybersecurity basics — Endpoint protection, firewall management, backup verification
• Strategic IT planning — A roadmap that aligns with your business, not just a support hotline
• Regular reporting — So you know what's working, what's been fixed, and what's coming

Koltiv's Managed IT Pricing Model

We built our pricing around two principles: clarity and alignment.

Clarity means:

• Simple per-user or per-site pricing without any hidden fees.
• Every agreement includes a clear scope of services so you know exactly what's covered.
• If scope changes, we discuss it before billing.

Alignment means:

• We configure services to your business goals, not a cookie-cutter package.
• You get a strategic roadmap, not just break/fix response.
• Our guarantee: If the scope doesn't align with your goals, the difference is on us.

We don't lock you into services you don't need, and we don't leave you guessing about what you're paying for.

Questions to Ask IT Service Providers Before Signing a Contract

Before you commit to any IT provider, ask these questions:

1. What exactly is included in the monthly fee?

Get a specific list. 'Unlimited support' isn't an answer. You need to know what systems they monitor, what security measures are standard, and what triggers an extra charge.

2. How do you handle issues proactively, not just reactively?

Ask for examples. Do they monitor 24/7? Do they catch problems before users notice? You're looking for prevention, not just quick firefighting.

3. What's your process for strategic planning?

Good providers build roadmaps that align with your growth plans. If they can't articulate how they help you plan for the next 12-24 months, you're getting break/fix masked as managed services.

4. How does pricing scale as we grow or change?

Your operation will change, so make sure their pricing model flexes with you. Rigid contracts become expensive problems.

Managed IT Services FAQ: Pricing and Service Questions

Q: Is managed IT really cheaper than break/fix over time?

A: Yes. Most companies spend less annually with managed IT because they avoid the compounding costs of downtime, security incidents, and reactive fixes. One ransomware attack costs more than years of managed services.

Q: Can we adjust our plan as we grow?

A: Absolutely. Good providers scale with you as you add users, locations, or services as needed without forcing you into long-term lock-ins.

Q: Will you replace our internal IT person?

A: Not necessarily. Many clients have internal IT staff and we act as an extension, handling infrastructure and repetitive tasks so they can focus on strategic work.

Get a Free IT Cost Assessment

You don't have to wait for a contract renewal to get clarity.

Answer two quick questions and get a custom estimate for Koltiv Managed Service Packages. 

If you have over 150 users, schedule a discovery call to discuss custom quantity discount pricing. 

Getting Transparent IT Service Pricing That Makes Sense

You shouldn't have to decode your IT invoice every month or wonder if you're overpaying for underperformance. The right IT partner makes the value obvious through uptime, strategic planning, and costs that match what you're actually getting.

Let's make your IT investment one you can fully understand and defend.