Should Your MSP Sell Hardware or Let Clients Shop? Pros and Cons

In this video, we dive into the crucial decision that many Managed Service Providers (MSPs) face: should you sell hardware directly to your clients, or let them shop for it themselves? We explore the benefits and drawbacks of both approaches, helping you make an informed decision for your MSP business.
Discover the impact on revenue, quality control, customer satisfaction, and more. Whether you're an established MSP or just starting out, this video will provide you with the insights you need to optimize your hardware strategy.
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[@kristopherleslie8343]

Personally ushering companies through the pathway is better than then buying randomly. One of my clients buys from office max bargain bin and thinks he did a great service

[@growthgenerators]

I agree big time!

[@notsure7874]

I'm in Florida. I can sell cloud and service all day. Add physical hardware and now I have to be a sales tax accountant and collector. If I put a 30 dollar piece of hardware on a ticket it is ALL taxable. At least thats my understanding from years ago. It was not worth it.
Also Dell sometimes makes you register deals and they will go behind you and sell direct to your customer behind your back anyway.
I spec a couple of machines and tell the client what to buy. Sometimes I handle it all for them with their cc info. I charge a flat setup fee. I don't do out of spec machines.
I want the MRR a lot more than a few bucks here and there as machines break or EOL. Handling the purchase and whatever just makes it easier for me to put them in the documentation system and whatnot.

[@growthgenerators]

Thanks for the comment. A couple of things:
Consult a tax professional. In QuickBooks, you can select what is and what is not taxable. It will make your life much easier to tax appropriately.
You should check out the Discord at growth-generators.com/discord and chat with others there as they go through the journey of building their MSP.
If you really want to scale, I suggest joining MSP Heroes at success.growth-generators.com/msp-heros-page. It's loaded with education and resources, as well as weekly coaching calls. I think taking advantage of that will help you get the answers you need to questions and get you scaling quicker.

[@notsure7874]

​@@growthgenerators Aware of that option in QB, but doing it wrong exposes you to liability. Until I'm seeing my clients buying a half mil / year in hardware or so, I don't want to deal with it.