Is Microsoft 365 reseller pricing fair?

“My MSP charges me more for Microsoft 365 than my cost if I purchase the services directly from Microsoft? Is that fair?”

Yes, it is common and reasonable for Managed Service Providers (MSPs, specific types of IT companies) to make a profit when reselling Microsoft 365 (formerly Office 365) licenses and services. MSPs function as intermediaries between Microsoft and their clients, providing additional value-added services, support, and expertise in managing and implementing Microsoft 365 solutions.

When MSPs resell Microsoft 365 licenses, they typically purchase them at a discounted rate through Microsoft’s Partner Program, which allows them to buy in bulk and at a reduced cost. The MSP then adds their own margin when selling these licenses to their clients. This margin covers the MSP’s cost and overhead and allows them to profit from their services.

The profit MSPs make from reselling Microsoft 365 enables them to invest in their infrastructure, training, and staff expertise, which benefits their clients. The MSP’s profit margin also reflects the added value and support they offer to ensure their clients get the most out of their Microsoft 365 investments.

Clients who work with an MSP benefit from the convenience of dealing with a single point of contact for all their IT needs, specialized expertise, proactive support, and customized solutions tailored to their specific requirements. This arrangement can be advantageous for both the MSP and the client, as the MSP can focus on delivering high-quality services while the client can concentrate on their core business operations.

The more important question one might ask is, “What version of M365 do I need?” M365 comes in a variety of “flavors.” Ask your MSP to analyze your needs and recommend the version(s) that best fit your business. Some employees may need a less feature-rich version than others; this can not only save you money in subscription costs but also in less training and support required for those users.

M365 is a powerful business tool, and with the right features for your business and with professional implementation, training, and support, it can deliver significant ROI in the form of greater productivity and security.