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What Is Device-Based Pricing in IT Services (And Does It Save Money)?

IT service pricing can feel unnecessarily complicated, with every provider seeming to speak a different language. Some are eager to quote numbers over the phone, while others dodge pricing questions entirely. Meanwhile, you’re left wondering: What am I actually paying for? Will there be surprise charges later? And which approach will give me the best value?

The truth is, there’s no universal “best” pricing model. But there is a best model for your specific situation, your growth plans, and the way your team actually works. The key is understanding what you’re comparing and asking the right questions upfront.

In this blog, we’ll break down the most common pricing models, show you when device-based pricing delivers real value (and when it doesn’t), and give you the questions to ask any provider to get clarity instead of confusion.

Why IT Pricing Feels Like a Shell Game: The Evolution of Service Models

IT pricing wasn’t always this confusing. Years ago, most IT support was simple break/fix: if something broke, you called a technician and paid an hourly rate. Straightforward, but expensive and reactive.

As organizations became more dependent on technology, managed service providers (MSPs) emerged with a different promise: proactive monitoring, maintenance, and support for a predictable monthly fee. The challenge was figuring out how to price that ongoing relationship fairly.

Different providers landed on different solutions based on what they found easiest to track and bill. Some focused on users, reasoning that each employee needed roughly the same level of support. Others counted devices, arguing that servers, laptops, and workstations were what actually required management. Still others preferred flat fees, believing that simplified billing and budgeting would be beneficial for everyone.

But here’s the problem: what’s convenient for the IT provider isn’t always what makes sense for your organization. Even worse, some providers use pricing models as a way to conceal actual costs by adding fees for “extras” that should be standard, or using complex unit billing that makes it impossible to predict your monthly spend.

That’s why understanding these models matters. When you know what you’re comparing, you can ask better questions and make decisions based on actual value rather than just the lowest number on the page.

The Big Three: Understanding Common IT Pricing Models

Most IT providers use one of three core approaches, each with distinct advantages and limitations.

Per-User Pricing: The Employee-Centric Approach

Per-user pricing is exactly what it sounds like: you pay a monthly fee multiplied by the number of employees who need IT support. 

This model works well for organizations where each employee has a standard setup: one laptop, a standard software suite, and predictable support needs. It’s also easy to budget and scale.

But per-user pricing can get complicated quickly. What about contractors who only work part-time? Seasonal employees? The executive who needs both a desktop and laptop? Conference room computers that multiple people use? Many providers handle these edge cases differently, leading to confusion and unexpected costs.

The bigger challenge is that per-user pricing doesn’t always reflect actual IT complexity. A graphic designer with high-end hardware and specialized software creates different demands than an administrative assistant with basic office needs. Yet both get charged the same rate.

Per-Device Pricing: The Hardware-Focused Model

In device-based pricing, instead of counting people, you count the technology. Each managed computer, server, or endpoint generates a monthly fee, regardless of who uses it or how often.

This approach can be more precise than per-user pricing, especially in environments where the relationship between people and devices isn’t one-to-one. Manufacturing facilities with shared workstations, medical practices with specialized equipment, or consulting firms with high contractor usage often find device-based pricing more accurate.

The challenge comes with defining what counts as a “device.” Does a conference room display count? What about that networked printer? How are personal devices handled? And as organizations become more cloud-centric with fewer physical devices, the model can become less relevant.

Flat Fee Pricing: The Predictable Approach

Flat fee or retainer pricing offers maximum simplicity: one monthly amount covers all agreed-upon IT services, regardless of users, devices, or usage fluctuations. 

For budget-conscious organizations, this predictability is valuable. There’s no math to track, no surprises when you hire seasonal help, and no debates about whether something counts as a “device” or “user.”

The trade-off is flexibility. Flat fee arrangements require a clear scope definition upfront, and changes can be complicated. Rapid growth, new technology needs, or expanding service requirements often trigger renegotiation. 

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When Device-Based Pricing Actually Saves Money

Device-based pricing isn’t inherently better or worse than other models. In certain scenarios, counting devices instead of users creates meaningful cost advantages:

  1. Shared Workstation Environments: Manufacturing facilities, medical clinics, and retail locations often have workstations shared by multiple employees across different shifts. In a per-user model, you might pay for 30 employees when you only have 12 computers that need management. Device-based pricing aligns costs with actual IT complexity.
  2. High Contractor or Consultant Usage: Professional services firms, seasonal organizations, and project-based organizations frequently work with contractors or temporary staff. These workers need IT access, but may only be around for weeks or months. Device-based pricing lets you provide necessary technology support without paying per-user fees for short-term relationships.
  3. Specialized Equipment Operations: Organizations with specialized hardware like medical devices, manufacturing equipment, and point-of-sale systems often find that device-based pricing better reflects their actual support needs. A medical imaging workstation requires different management than a basic office computer, and device-based models can account for that complexity.
  4. Seasonal Workforce Fluctuations: Retail companies, tax preparation services, and agricultural businesses experience dramatic staffing changes throughout the year. Device-based pricing provides cost stability since the underlying technology infrastructure remains consistent even as headcount fluctuates.

When Device-Based Pricing Might Cost You More

While device-based pricing offers advantages in specific scenarios, it can become expensive or impractical in others:

  1. Mobile and BYOD-Heavy Environments: Organizations where employees primarily work on personal devices or mobile equipment may find device-based pricing complicated and expensive. If your team works mostly on smartphones, tablets, or personal laptops, counting and managing each device becomes cumbersome and costly.
  2. Rapid Growth or High Device Turnover: Startups and fast-growing companies often experience frequent technology changes: new hires, equipment upgrades, and device replacements. Device-based pricing requires constant adjustment and can create administrative overhead that per-user pricing avoids.
  3. Cloud-First Operations: Companies that have moved most operations to cloud-based platforms may have minimal on-site hardware to manage. If your team works primarily through web browsers and cloud applications, device-based pricing may not reflect actual IT support requirements.
  4. Complex Multi-Location Setups: Organizations with multiple offices, remote workers, and varied technology setups may find that device-based pricing creates inconsistent costs and complicated billing across locations.

The Questions You Should Ask Any IT Provider About Pricing

Regardless of which model a provider proposes, transparency should be non-negotiable. Here are the essential questions that separate straightforward partners from those who prefer to keep their math hidden:

  1. What exactly counts as a “device” or “user” in your pricing? Get specific definitions. Does a conference room computer count? What about mobile devices, printers, or personal equipment used for work?
  2. Are there any additional licensing or service costs outside the monthly fee? Some providers quote low base rates but charge separately for software licensing, security tools, after-hours support, or “premium” services.
  3. How do you handle growth, seasonal changes, or temporary staff? Understanding flexibility upfront prevents surprise costs later. Can you add devices mid-contract? How are billing adjustments handled?
  4. Can you show me a 12-month cost projection based on our specific situation? Any reputable provider should be able to model your actual environment and show realistic cost scenarios, including seasonal fluctuations or planned growth.
  5. What’s your contract commitment? Long-term contracts can lock you into arrangements that don’t evolve with your business. Look for providers confident enough in their service to offer flexibility.
  6. How do you handle BYOD, mobile devices, and cloud services? Modern IT support extends beyond traditional computers. Understand how your provider manages the full spectrum of technology your team uses.

The right provider will answer these questions directly and help you understand which model truly fits your situation. 

The TenisiTech Difference: Transparent Pricing That Makes Sense

At TenisiTech, we’ve seen every pricing model work brilliantly (and fail miserably) depending on the situation. That’s why we start every conversation by understanding your specific environment, growth plans, and operational reality before discussing pricing at all.

Here’s what sets our approach apart:

Flat Monthly Fee with Device-Based Flexibility: We’ve refined our model to keep costs predictable. Pricing starts with a flat monthly fee and only adjusts if devices, licenses, or projects are added. This ensures you know exactly what you’re paying for without hidden extras.

Two Packages, Tailored to You: Every client starts with our IT Foundations Experience, which includes essentials like HDI-certified service desk support, workstation and cloud security management, data backup, vulnerability management, and 24/7 SOC coverage. For clients who want to extend into strategy and leadership alignment, our IT Scale Partnership Experience adds services like system administration, vendor management, executive dashboards, and dedicated account management.

Customized Offerings Based on Feedback: No two organizations are the same. We work closely with you to tailor services based on your needs, growth stage, and feedback. That might mean adjusting coverage for seasonal staff, adding specialized tools, or building out governance frameworks for compliance.

Included Tools at No Extra Cost: Endpoint protection, asset and patch management, IT automation, and service management tools are all included in the monthly fee. Optional add-ons, such as advanced identity detection, governance tools, or security awareness training, are available if needed.

HDI-Certified Support: All our helpdesk agents are HDI-certified, ensuring you get both technical expertise and exceptional customer service. This is a commitment to the kind of personable, professional support that makes IT feel less frustrating and more empowering.

Proven Cost Savings: Through comprehensive IT audits, we regularly help clients save tens of thousands of dollars by identifying redundant services, renegotiating vendor contracts, and eliminating wasteful spending. These savings often offset our service costs entirely.

What we don’t do is force your organization into our preferred pricing category. Instead, we give you the flexibility to choose between device-based pricing, flat fees, and tailored packages all within a transparent framework that scales with your organization.

Beyond Price: Making IT Decisions That Drive Value

While understanding pricing models is important, the lowest number doesn’t always deliver the best value. The most expensive mistakes happen when organizations choose IT providers based solely on cost, only to discover that scope, quality, or strategic alignment were sacrificed.

The right provider becomes an extension of your team, proactively identifying opportunities, preventing problems, and aligning technology investments with business goals.

Device-based pricing, per-user models, and flat fees are just different ways to structure that partnership financially. The pricing model that saves money in year one might cost more in year three if it doesn’t support growth. Similarly, the most expensive option upfront might deliver significant value through better security, reduced downtime, or strategic guidance.

Look for providers who can clearly explain their recommendations, show their math, and demonstrate how their approach supports your specific objectives. Pricing should be transparent, fair, and designed to grow with your organization. 

Most importantly, ask yourself: Does this pricing model encourage the kind of relationship I want with my IT provider? Does it align their incentives with my success? Will it support my goals two or three years from now, not just today?

At TenisiTech, we believe the best pricing model is the one that disappears into the background, letting you focus on running your business while we handle the technology that makes it possible. When IT costs are predictable, transparent, and aligned with business value, technology becomes a tool for success rather than a budget battle.

Ready to get clarity on IT pricing for your specific environment? TenisiTech provides transparent cost analysis tailored to your organizational needs, growth plans, and operational reality. Schedule your free consultation and discover which pricing approach will truly deliver the best value for your organization.

Tenisi Tech
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