Minimum Profitable Price

Verdict

BELOW FLOOR

Current price $125 is $49.88/user/mo below the floor needed for 50% margin.

Key figures

Minimum price / user / mo	$175
Delivery cost / user / mo	$87
Loaded hourly cost	$81/hr
Margin at current price	30%
Gap vs floor (per user)	$-50
What to do	RAISE PRICES NOW
Why	Floor is more than 15% above your current rate — the 2026 pricing playbooks call this an active pricing problem in the P&L, not a renewal item.
Market context	2026 market band: $70–$250/user/mo depending on stack, coverage, and region* — your floor is about cost, the band is about positioning.

Assessment

Loaded hourly cost $80.96 from 1400 productive hours (not 2,080). Delivery cost $87.44/user/mo at 1.1 tickets/user. Floor at 50% target margin: $174.88 (cost / (1 - margin)).

Questions for the founder

Are productive hours measured or assumed? PTO, training, meetings, and nonbillable time usually leave ~1,400 of 2,080.
Which clients drive tickets/user above the average? Per-client cost-to-serve is the follow-up (the platform computes it from PSA data).
Do onboarding, projects, and after-hours carry separate pricing? They are excluded here and are not free.

Assumptions & method

Defaults are typical* 2026 values, not benchmarks for your market.
Excludes onboarding, projects, after-hours premiums.
Floor math: cost / (1 - margin%).

Generated by AICost.ai (aicost.msp-price-floor), CloudIntelligence.ai LLC. API pricing is sourced vendor-exact from a daily-maintained pricing single source of truth as of 2026-07-20. Values marked with an asterisk are analyst estimates rather than vendor-verified data. This memo is a cost-and-unit-economics analysis prepared for diligence purposes; it is not investment advice, and it does not assess team, market, product or legal risk.