EP226 – What To Do When Your Clients Say They Can’t Afford You Anymore with Clare Elliott & Ian Luckett

03/31/25 • 26 min

But is that really the end of the road, or is there something you can do to keep that client, maintain profitability, and avoid unnecessary churn? In this episode of the IT Experts Podcast, I sat down with our resident finance coach, Clare Elliott, to explore what MSPs can do when faced with clients who are reconsidering their contracts.

Clare works with MSPs every day inside the Growth Hub, helping business owners understand their numbers, optimise their pricing, and make better financial decisions. One of the key takeaways from our conversation is that if a client calls you to say they’re leaving, it should never come as a surprise. If you’ve been proactively managing your client relationships, you should already have an idea of their situation. So, the first tip is simple but powerful—know your clients. Regular account management, consistent check-ins, and open communication ensure that you’re never blindsided by a client’s decision to leave. It also means you have a chance to address any concerns before they become deal-breakers.

Another critical point we covered is that MSPs must know their numbers inside out. Many business owners avoid digging into their financials because they find them dull or even intimidating. But the reality is, without a clear understanding of your profitability—by client, by service, and by contract—you could be working with accounts that are costing you money rather than generating it. Clare highlighted how important it is to track the profitability of each client, ensuring they’re worth retaining. If a client isn’t profitable, their departure might not be a bad thing. In fact, it could free up resources for better opportunities.

We also discussed the importance of value perception. Sometimes, when a client says they can’t afford you, what they’re really saying is they don’t see enough value in what they’re paying for. This is where proactive communication is essential. MSPs need to regularly remind clients of the benefits they receive—whether that’s seamless IT support, cybersecurity protection, or increased business efficiency. If clients don’t see what you’re doing in the background, they might assume they’re paying for less than they’re actually getting. MSPs should be educating clients on the value they provide, whether that’s through case studies, testimonials, or regular business reviews. The more you communicate your worth, the less likely a client is to see your service as an unnecessary expense.

One of the biggest mistakes an MSP can make when a client threatens to leave is resorting to discounts as a knee-jerk reaction. Clare and I both agreed that discounting is a dangerous path. It not only reduces profitability but also sets a precedent for future price negotiations. Instead, MSPs should focus on reinforcing the value of their service. If a client is genuinely struggling, consider restructuring their package rather than simply lowering the price. Having clear service tiers, such as a gold, silver, and bronze package, can help give clients flexibility while maintaining overall profitability.

Security also plays a huge role in pricing and client retention. I’ve heard from MSPs who still offer security as an optional extra rather than making it a non-negotiable part of their service. Clare made an excellent point—security should never be an option. MSPs that separate security from their core offering run the risk of clients opting out, exposing themselves to unnecessary risks, and blaming their provider when things go wrong. If an MSP isn’t making security a baseline requirement, they need to rethink their approach.

Finally, we discussed knowing when to walk away. Not every client is worth saving. If you’re constantly firefighting an unprofitable client or bending over backwards to accommodate their demands, it might be time to let them go. Business owners often feel nervous about losing a customer, but keeping a bad-fit client can sometimes be worse than losing them. By knowing your financials and understanding the true cost of service delivery, you can make confident decisions about which clients are worth fighting for and which ones you should let go.

At the end of the day, MSPs need to be proactive, data-driven, and confident in their value. If you’re managing your client relationships well, staying on top of your numbers, and ensuring your pricing reflects your worth, you’ll be in a much stronger position to handle pricing objections and client churn. And if a client still decides to leave, handle the offboarding professionally—you never know when they might come back.

Connect on LinkedIn HERE with Ian and also with Stuart by clicking this LINK

And when you’re ready to take the next step in ...

Connect on LinkedIn HERE with Ian and also with Stuart by clicking this LINK

And when you’re ready to take the next step in ...

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EP225 – Inside the MSP Growth Hub – January 2025 Intensive Round Up with Stuart Warwick, Clare Elliott, Julie Hutchison & Ian Luckett

I’m joined by fellow MSP Growth Hub coaches Stuart Warwick, Julie Hutchison, and Clare Elliott, as we reflect on the key takeaways from our January 2025 two-day intensive.

These intensives are the cornerstone of the MSP Growth Hub’s Scale with Confidence model, bringing together MSP owners and leaders to reflect, reset, and refocus on their business growth. The January event was centred around the theme of ‘Harnessing Ambition’—not just setting strategic goals but ensuring they are cascaded throughout the entire organisation. This is where business owners can make real progress, ensuring their company, departments, and individuals are all aligned and working towards the same vision. When this is done properly, businesses accelerate growth, eliminate friction, and reduce stress for the owner and their teams.

One of the most powerful aspects of these events is the energy in the room. We had around 55 MSPs from all different stages of business maturity, but each and every one of them had a clear plan. They knew their headline numbers, their biggest challenges, and what they wanted to get out of the two days. And while there was plenty of networking (and cake!), this wasn’t just a social gathering. It was a working event. In fact, we encourage attendees to take an extra decompression day afterwards to process everything they’ve learned and recalibrate their action plans.

A standout session from this intensive was our deep dive into transforming profits in 180 days. Clare and Stuart walked the room through a practical framework that got everyone thinking differently about their numbers. Many realised they had never truly understood their financial levers and wished they had brought their finance teams along—though, of course, this session was specifically designed for MSP owners to take ownership of their financial strategies. We focused on high-level principles of financial management, helping them understand how to improve profitability in a structured way that compounds year on year.

Another major highlight was Julie’s session on identifying and developing future leaders within an MSP. So many business owners struggle with delegation and succession planning, yet they have potential leaders sitting right in front of them. The key is not just identifying technical skill but looking for people who genuinely want to lead. As Julie put it, if you don’t give those people the opportunity to grow, they will find it elsewhere. She introduced a simple scoring system that helped MSP owners assess their teams objectively, ensuring they are nurturing the right people and not just promoting someone because they’re the best technician.

A personal highlight for me was delivering the ICE Framework—a brand-new, practical system to help MSP owners escape overwhelm, find more time, and focus on the right activities. From time management to prioritisation and delegation, we crammed every ounce of value into this framework. The feedback was fantastic, with many attendees saying it was the missing piece they needed to create more headspace and get out of the daily firefighting mode. It’s now a permanent part of our growth system, sitting in the Vault for members to access anytime.

What makes these events so special isn’t just the frameworks and strategies—it’s the shared learning. The room is packed with like-minded business owners who are all on the same journey, using the same language, frameworks, and processes. That alignment is what allows them to move faster, make better decisions, and ultimately compress the time it takes to scale. The discussions, the problem-solving, and the breakthroughs that happen in real-time are what make these intensives so impactful.

And the impact doesn’t stop when the event ends. The ripple effect through MSP teams is incredible. We saw business owners leaving with a renewed sense of purpose, taking what they learned straight back to their teams, engaging them in the vision, and aligning everyone with the company’s mission. We even had one MSP receive a thank-you gift from their team because they had gone back, implemented everything, and made such a difference to the way they operated. That’s what it’s all about—helping MSP owners build businesses that work for them rather than them being stuck in the day-to-day grind.

Looking ahead to our next event in May, we’ll be focusing on ‘Amplifying Capacity.’ This means going deep into team structures, operational efficiency, and leadership skills. We’ll be tackling topics like how to get more from your people, how to recruit and retain the right talent, and how to eliminate the bottlenecks that slow down business growth. Expect practical workshops, panel discussions, and insights on everything from using productivity tools like Asana to maximising PSA systems. And, of course, Julie will be leading a powerful session on dealing with difficult conversations—something every MSP leader ...

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EP227 - Preparing Your People for M&A with Alison Whitfield & Ian Luckett

Now we all know M&A – mergers and acquisitions – can be one of the fastest ways to grow and scale your business. Once you’ve got your house in order, and you’re running at a solid EBITDA with strong operational maturity, bolting on new businesses might seem like the logical next step. But – and it’s a big but – what’s often overlooked is what that really means for your people. And if your culture, leadership, and structure aren’t ready, the train can very quickly come off the rails.

Alison brings a grounded, real-world view to this conversation. She’s been on the front line of some pretty major acquisitions, including one that jumped from £8m to £24m turnover and took the team from 45 to 140 heads almost overnight. And she shares, with honesty and clarity, what it actually takes to pull this off in the real world – and how to stop your people, and ultimately your growth, from falling apart at the seams.

We talk about the massive difference between tactical HR and strategic HR. It’s one thing having your contracts and compliance sorted, but when you’re growing – especially through M&A – you need to shift your mindset. Strategic HR is about seeing your people as assets who are actively driving your commercial goals, not just passengers on the bus. If you’re growing from 30 to 50 to 60 people – whether gradually or through acquisition – you need the structure, the leadership, and the culture that will carry the weight of that growth.

One of the key points we covered is that M&A isn’t just about the deal. Signing the contract is only the halfway point – the real work starts once the ink is dry. Integration takes time, effort and energy. The leadership team will be tired, decision-fatigued, and ready to move on. But for your people – this is day one. For those coming into your business through the acquisition, it can be an unsettling, nerve-wracking time. They didn’t choose this change – it’s been done to them – so empathy and clear communication are absolutely essential.

Alison shares her proven approach, which includes creating a detailed FAQ document before the announcement is made. This answers the big, scary questions your team will have: “Is my role changing?”, “Is my manager changing?”, “Will I have to move?”, “What’s happening with my benefits?” It sounds simple, but this one proactive step can calm the chaos and build confidence straight out of the gate. And that goes for both sides – your existing team will have just as many concerns as the team you’re bringing in. Having honest, timely conversations is key.

We also discussed the importance of appointing a dedicated facilitator – someone who knows your business inside out and can lead the integration project. Whether it’s a head of people internally or a consultant who’s been through this before, this person becomes the glue that holds the project together. They keep the comms flowing, make sure nothing falls through the cracks, and allow the senior leadership team to stay focused on the bigger strategic picture.

Crucially, M&A should never become BAU – Business As Usual. It’s a project – a big one – and it needs to be treated as such. Weekly updates, clear milestones, and a firm timeline for integration are essential. Otherwise, you risk ending up with multiple businesses operating under one roof, with different systems, processes, and a fractured culture – and that’s the opposite of scale.

If you’re an MSP leader even thinking about growing through acquisition, this episode is a must-listen. Alison Whitfield brings not just the strategy, but the practical wisdom that comes from years of experience. Her insights on people, planning and culture are gold dust – especially in the fast-paced world of M&A.

For more insights on structuring and growing your MSP, connect with Alison Whitfield on LinkedIn or visit Cultivate People Services to learn more about their people and culture solutions.

Connect on LinkedIn HERE with Ian and also with Stuart by clicking this LINK

And when you’re ready to take the next step in growing your MSP, come and take the Scale with Confidence MSP Mastery Quiz. In just three minutes, you’ll get a 360-degree scan of your MSP and identify the one or two tactics that could help you find more time, engage & align your people and generate more leads.

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