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The Margin Problem With Noisy Clients

A small number of clients consume a disproportionate share of capacity. Finding them, and what to do once you have.

Business · Analysis

In most providers, two or three clients account for a large share of support effort while paying the same as everybody else. The effect is invisible without measurement.

The commercial decision in “The Margin Problem With Noisy Clients” is stronger when it rests on consistently recorded delivery effort rather than memory. An MSP can use this supporting resource to relate time to clients, projects and recurring tasks, while keeping service quality, contractual scope and customer outcomes as separate measures.

For an independent operational benchmark, compare the local practice with official ITIL resources; the important test is whether the control remains proportionate, documented and recoverable when the usual technician is unavailable.

Why it happens

An estate in poor condition: old hardware, unsupported systems, no standardisation.

A client who declines every recommendation and then raises the resulting tickets.

Users with high expectations and direct access to your technicians.

Or simply more machines per person than the pricing assumed.

Finding them

Time per client, which requires time tracking that actually happens.

Tickets per user per month, compared across clients.

Alert volume per device, which the noise section covers.

Any of the three identifies the outliers; the first quantifies the cost.

The uncomfortable arithmetic

A client paying the average and consuming three times the average effort is being subsidised by the others.

That subsidy comes from your margin and from the service your other clients receive.

Stating it that way internally is what makes the conversation happen, because framed as "difficult client" it just gets absorbed.

The three responses

Fix the cause: the estate, the standardisation, the unsupported systems. Usually a project the client has declined.

Reprice: move them to a tier or model matching the effort.

Or decline to renew, which has its own note.

Absorbing it indefinitely is the fourth and is what most providers do.

Having the conversation

With figures: here is what we spend, here is what causes it, here are the options.

Not as a complaint about them.

Most clients do not know they are expensive and several will fund the fix once shown, which is the outcome worth aiming for.

The tuning check first

Before the commercial conversation, confirm the noise is theirs rather than yours.

A client generating thousands of alerts because nobody tuned their profile is your problem, not theirs.

Its own note covers per-client tuning, and doing it first avoids an embarrassing conversation.

Preventing it at sale

Discovery before contract, as the onboarding section argues.

Price the estate you found rather than the one described.

And name the remediation as a project with a cost, rather than hoping it will be fine.

What to check

Do you know your effort per client?

Which client costs most per pound of revenue?

Is their noise tuned, or inherited from defaults?

And has anybody ever shown a client what they cost?

The point

A client paying the average and consuming three times the average effort is being subsidised by the others, out of your margin..

Underlying all of this

Everything in this collection reduces to four habits: tune until every alert is read, verify rather than assume at every stage from ring one to script execution, treat the console as the privileged system it is, and know what each client costs you. None needs a better platform, and a provider doing all four runs a quieter service than one twice its size.

The recurring pattern

The recurring pattern across every section here is the same: the appearance of control substituting for control. An unread alert queue looks like monitoring. A compliance percentage that excludes pending reboots looks like protection. A script that reports success looks like automation. In each case the provider believes a risk is handled and it is not, which is worse than knowing it is open.