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

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 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.  OR   To join our amazing Facebook Group of over 400 MSPs where we are helping you Scale Up with Confidence, then click HERE  Until next time, look after yourself and I’ll catch up with you soon!