#2 – Don’t Be That Guy - You Suck at Managed Services - Fix It! (Ryan Alter)

In this edition of the Don’t Be That Guy series, Josh teams up with former MSP owner Ryan to explain why you may be keeping clients secure and productive yet still “suck” at managed services. Delivering good service isn’t enough if you ignore your business’s financial health. The hosts dive into Agreement Gross Profit (AGP), Effective Hourly Rate (EHR) and the Service Salary–Revenue Ratio (SSSR), showing how too many MSPs focus on recurring revenue and overlook profitability.

Drawing on Ryan’s journey from a one‑man break‑fix shop to a 25‑person MSP, they reveal why growing revenue alone won’t fix broken margins. You’ll learn how improper PSA setup, mispriced contracts and poor dispatch decisions erode profits, and why building a data‑driven culture around these metrics is essential to run a truly healthy business.

This candid conversation explores:

• Why MSPs need to track profitability metrics like AGP and EHR—not just revenue
• The difference between agreement gross profit and effective hourly rate
• How to price services and allocate labour to hit target margins
• The importance of dispatcher training and balancing utilisation, salaries and client satisfaction

For additional resources on financial management and operational efficiency, explore Bering McKinley’s finance consulting services to declutter your accounting and set clear profit targets. You can also learn how consistent timecard entry protects your operations and keeps your team accountable. To compare notes on pricing for profit and measuring AGP/EHR, read our inaugural episode, Don’t Be That Guy: Managed Services Sucks (Episode #1).

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Episode Highlights

• 00:00:15 – Introduction to the bold theme “You suck at managed services” and why financial literacy matters more than service quality alone.
• 00:07:20 – How most MSP owners don’t know their Agreement Gross Profit (AGP) and the danger of flying blind.
• 00:13:48 – Breaking down the AGP formula: revenue minus licensing and labour costs, with a 65% target for managed services.
• 00:20:00 – The impact of dispatch decisions on profitability and sending the right technician for the job.
• 00:32:00 – Why the Service Salary–Revenue Ratio (SSSR) should hover around 33% to maintain staffing efficiency.
• 00:46:30 – Setting target ranges for AGP and avoiding the trap of underserving clients just to boost margins.
• 00:48:19 – Understanding why AGP and EHR don’t always correlate and what discrepancies reveal about your operations.

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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