July 07, 2025
You've heard the phrase: You get what you pay for. This is especially true in the world of IT.
At first glance, opting for a low-cost managed IT services plan might seem like a smart financial move: reduced monthly fees, basic support, and perhaps some cybersecurity features included. However, a closer look often reveals hidden expenses, overlooked exclusions, and inadequate protection that can end up costing your business much more over time.
From years of analyzing IT contracts for small businesses, we've identified recurring pitfalls. Here are five frequent ways "budget" MSPs cut corners—and how those shortcuts can lead to expensive problems for business owners.
1. Insufficient or Missing Cybersecurity Measures
Basic antivirus software is not enough to secure your business.
Yet many low-priced IT providers stop there, neglecting essential protections like two-factor authentication, advanced endpoint detection, employee training, and backup defenses for breaches.
Why is this critical? Cyber insurance companies now mandate advanced cybersecurity protocols before issuing policies. Without these safeguards, your insurance claim could be rejected if an incident occurs.
We've witnessed businesses incur tens of thousands in losses because their MSP failed to implement the cybersecurity measures required by their insurance. This isn't just poor IT support—it's negligence.
2. Incomplete Data Backups That Risk Your Critical Information
Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace automatically safeguard their data.
In reality, these services offer only basic backup capabilities and do not provide comprehensive disaster recovery or long-term data retention solutions.
Budget or inexperienced IT firms often omit backups for cloud applications, CRMs, and third-party tools, leaving vital data vulnerable. Even worse, many do not provide immutable backups, now a requirement for numerous cyber insurance policies.
Think your data is fully backed up? It's crucial to ask your current provider exactly what is—and isn't—covered.
3. Unexpected Charges for On-Site and After-Hours Support
A common tactic is offering a low monthly fee but adding extra costs whenever you require support outside standard business hours or need an in-person visit.
We advocate for transparent, flat-rate pricing. However, many providers exclude on-site visits, after-hours assistance, and emergencies from their base fees, leading to surprise bills.
This approach causes hesitation when seeking help, resulting in delayed support calls and increased downtime costs.
4. Lack of Support for Vendors and Third-Party Devices
If you encounter issues with your phones, internet, or security cameras, some IT companies will simply say, "That's outside our scope."
They may charge hourly fees just to communicate with other vendors. Additionally, if devices like printers aren't on their "approved" list, they might refuse assistance altogether.
We provide comprehensive vendor coordination and network support for all technology impacting your business, recognizing that issues often span multiple systems.
5. Unskilled Technicians Without Dedicated Account Management
A major warning sign is a "one-person operation" or a company that hires entry-level techs on 1099 contracts without a strategic support plan.
With budget MSPs, you might receive reactive help, but not proactive guidance.
What you deserve is:
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A dedicated account manager to develop your technology roadmap
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Regular assessments of your cybersecurity, compliance, and backup status
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Budget planning and upgrade strategy
● A trusted advisor, not just a ticketing system for tech support
Final Thought: If It Seems Too Good to Be True, It Probably Is.
Many small businesses remain unaware of their vulnerabilities until a crisis hits—whether it's a ransomware attack, server failure, or hefty compliance penalty.
By that point, the damage is done.
If you want IT services that truly safeguard your business, you must look beyond just the monthly cost. Ask the tough questions, demand clear answers, and avoid contracts that leave you exposed.
Curious about what your current IT contract might be missing? Let us evaluate your network at no cost. We'll identify any gaps in your IT setup and provide straightforward, jargon-free advice on how to strengthen your defenses.
Click here or call us at 608-416-2400 to schedule your FREE 10-Minute Discovery Call.
