I want to talk about the golden metric for MSP management. At Stride, we call it the win4all ratio.
The win4all ratio says: We want to make our clients successful, and we want to deliver them a great service at a fair value. The win for all part of it is to make sure that we’re able to be profitable while we’re delivering delivering that great service at a good value.
There’s a way that we can measure that that I call the golden metric. And the golden metric looks something like this for your managed service customers specifically:
Shadow bill rate is not my term. I’ve heard it from some other notable industry experts like Larry Cobrin at MSP CFO.
Here is an example. If I’m charging you $5,000 a month MRR but my shadow bill rate is $10,000 (say it’s 100 hours times $100 An hour effectively), then my win4all ratio is 0.5. That’s a problem.
And that signals an opportunity. Here’s how:
The goal is to consistently measure the Win4All and have it be greater than 1.0.