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, a cheaper managed IT service plan might look like a bargain—lower monthly fees, basic support, and maybe some cybersecurity features included. But a closer look often reveals hidden expenses, limited coverage, and gaps that can end up costing your business significantly more over time.
After years of analyzing IT contracts for small businesses, we've identified recurring pitfalls. Here are five common ways "budget" MSPs cut corners—and how these shortcuts can lead to expensive problems for you.
1. Inadequate or Missing Cybersecurity Measures
Basic antivirus software alone does NOT constitute proper cybersecurity.
Yet many low-cost IT providers stop there—no two-factor authentication, no advanced endpoint protection, no employee awareness training, and no backup safeguards if threats bypass defenses.
Why is this critical? Cyber insurance providers now require robust cybersecurity protocols before offering coverage. Without these in place, your claims might be denied following a breach.
We've witnessed companies lose tens of thousands due to their MSP failing to implement the necessary security measures mandated by their insurance. This isn't just poor service—it's negligence.
2. Incomplete Backup Solutions That Risk Your Data
Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace automatically back up all their data.
In reality, these services offer only basic backup capabilities and are not designed for comprehensive disaster recovery or long-term data retention.
Budget IT providers often exclude backups for cloud applications, CRMs, and other third-party systems, leaving vital information vulnerable. Even worse, many fail to provide immutable backups, a feature increasingly required by cyber insurance policies.
Think your backups are sufficient? Ask your current provider exactly what data is protected—and what isn't.
3. Hidden Charges for On-Site and After-Hours Support
A common tactic is to advertise a low monthly fee but then add extra costs whenever you require support outside regular business hours or need an on-site visit.
We advocate for clear, predictable pricing. However, many providers exclude on-site services, after-hours assistance, and emergency support from their base plans to justify additional fees later.
This approach makes you hesitate before calling for help, leading to delayed support and increased downtime that ultimately costs your business more.
4. Lack of Support for Vendors and Third-Party Devices
Experiencing issues with your phones, internet, or security cameras? Some IT companies will simply say, "That's outside our scope."
They might even charge you by the hour just to communicate with other vendors. If your printer or other hardware isn't on their approved list, they may refuse assistance altogether.
We provide comprehensive vendor coordination and network support for all technology connected to your business, because issues can arise from any source.
5. Unseasoned Technicians and No Dedicated Account Management
A major warning sign is a "one-person operation" or a company relying on entry-level contractors without a strategic support plan.
With budget MSPs, you might receive basic assistance, but lack expert guidance.
What you deserve is:
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A dedicated account manager to help you develop a tailored technology roadmap
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Regular proactive assessments of your cybersecurity, compliance, and backup status
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Budget forecasting and strategic upgrade planning
● A trusted advisor who goes beyond just resolving tickets
Final Thought: If It Seems Too Good To Be True, It Probably Is.
Many small businesses don't realize they're underprotected until disaster strikes—whether a ransomware attack, system failure, or costly compliance penalty.
By then, it's often too late.
If you want IT services that truly safeguard your business, look beyond the sticker price. Ask the tough questions, demand transparent answers, and avoid contracts that leave you vulnerable.
Curious about what your current IT contract might be missing? Let us evaluate your network at no cost. We'll identify any gaps, explain everything clearly, and provide honest advice on how to strengthen your IT defenses.
Click here or call us at 804-796-2631 to schedule your FREE 15-Minute Consult.
