#1 – Don’t Be That Guy: Managed Services Sucks (Ryan Alter)

In Episode #1 of our Don’t Be That Guy webinar series, host Josh Peterson (CEO of Bering McKinley) invites former MSP owner Ryan to deconstruct the conventional managed‑services model. They argue that while MSPs often excel at keeping clients safe and productive, the business side frequently “sucks” because owners fail to track and manage the right financial metrics. This conversation emphasizes that AGP (Agreement Gross Profit) and EHR (Effective Hourly Rate) must be understood, measured and targeted for profitability.

Josh and Ryan contrast the break‑fix model’s immediate feedback with the delayed visibility in managed services, warning that predictable monthly revenue can lull MSPs into complacency. Ryan shares how focusing on hourly revenue and disciplined operations in his break‑fix MSP produced strong gross and net margins, sometimes outperforming traditional managed services. They stress that success requires near‑perfect execution in pricing, ticketing, time entry and client communication—and that most MSPs leave money on the table by underestimating hourly billing and out‑of‑scope work.

The webinar encourages embracing multiple revenue streams—recurring, project and hourly—as complementary rather than competing. Josh proposes hybrid pricing models combining a base managed‑services fee with hourly or block billing to align expectations and improve profitability. Throughout, the hosts urge MSPs to train dispatchers and technicians on contract terms, use third‑party reporting tools for accurate metrics, and practice transparency by sharing detailed notes with invoices. They conclude that disciplined financial management not only improves operations today but also maximizes enterprise value when it’s time to sell.

For deeper guidance on setting profit targets and improving your financial discipline, explore our finance consulting services. Learn how dispatchers keep teams accountable and flag out‑of‑scope work in our article on dispatch accountability. To see why consistent timecards matter, read about recording your IT support timecard. Ready for more? Continue the series with Episode #2 – “You Suck at Managed Services – Fix It!”.

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Episode Highlights

• 00:00:15 – Josh introduces the “Managed Services Sucks” series, outlining Bering McKinley’s mission to challenge MSP orthodoxies and boost profits.
• 00:06:02 – AGP spotlight: why Agreement Gross Profit is the health indicator for managed services and how poor reporting leads to underperformance.
• 00:12:03 – Break‑fix versus managed services: immediate feedback loops versus delayed visibility, and the risk of complacency.
• 00:20:28 – Technician incentives: paying techs for billable hours can align performance with profitability.
• 00:26:24 – Hourly billing as “pressure release valve”: charging for out‑of‑scope work protects margins and discourages the “all-you-can-eat” mentality.
• 00:31:41 – Hybrid pricing models: combining a base managed‑services fee with hourly or block billing improves sales and client alignment.
• 00:53:14 – Exit readiness: buyers scrutinize your financial metrics; disciplined reporting now raises your enterprise value later.

About the Guest

Ryan is a former MSP owner from Missoula, Montana. Over two decades he grew a one‑man break‑fix shop into a 25‑person operation before selling it. Ryan shares insights on balancing team wellbeing, financial metrics and operational excellence—and why more revenue isn’t always the solution.

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About the Host

Josh Peterson is the CEO of Bering McKinley and host of the BMK Vision Podcast. Through the Don’t Be That Guy series, Josh explores common pitfalls and success strategies for MSP owners—no scripts, no theory, just real stories and actionable business insights.

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