Client Margin
Which clients pay for the time they take?
Every MSP has clients that quietly cost more to support than they pay. Client Margin shows revenue per hour for every client, straight from your PSA, and tells you which ones to save, fix, reprice or protect.
Four groups, four decisions
Margin on one axis, Revenue at Risk on the other.
Save these first
Profitable, but their service or relationship has changed. Losing one of these hurts most.
Fix or reprice
Changing behaviour and thin margin. Fix the service problem, then look at the contract.
Reprice at renewal
A steady relationship, but they take far more time than they pay for.
Protect and grow
Healthy and profitable. Keep them happy and look for room to expand.
How it is worked out
Handover takes each client's current monthly contract or recurring invoice value and divides it by the average monthly hours your team logged on that client's tickets over the last three complete months. Each client is compared with your typical client, so you do not need to enter salaries or overheads.
A client is only measured when it has a contract value and time is logged on most of its tickets. Anything that cannot be measured is listed with the reason, so you know exactly what to fix in your PSA.
Margin sits next to Revenue at Risk because the two answer different questions: one tells you who might leave, the other tells you who is worth keeping on today's terms.