How Much Should You Charge for Support?

by | Mar 19, 2019

Setting the correct price for your support programs begins with a baseline understanding of what your market will bear but ultimately the price must be based on the type and level and entitlements offered.

Average Support Program Price

The average prices for support programs range from 15.6 percent for a basic level of support to more than 26 percent for a high-end premium program.  Prices vary based on the entitlements offered and the ways that pricing is structured.  Here are a few considerations:

Net vs. List

Pricing may be based on the percent of a products’ list price or the net price after discounts.

Add-on’s and Fixed Fees

Some support programs consists of a fee tied to the percent of product list or net price plus add-ons.  Add-ons are often associated with optional entitlements such as named support resources such as designated support engineers and/or account managers.

Adjustment Fees

The price of support in the first year is often not the price a customer will pay in subsequent years.  Support prices typically include annual adjustment fees to account for inflationary factors.

Pricing by Support Program Tiers

Support pricing is typically established by program level or tier.  It is not uncommon for support portfolios to consist of two or more tiers with names like Silver, Gold and Platinum.  Although support programs may sound alike, they often vary from vendor to vendor.  For the purposes of establishing baseline pricing benchmarks ServiceXRG has normalized support programs into the four distinct tiers described below.  Classification is based on the underlying program entitlements and not on the program names.

Support Program Tier Classifications

Average Support Program Price

Establishing Support Prices

The price of support must be set at a level sufficient to cover delivery costs, yet not too high to discourage customers from buying.   Customers are likely to have preconceived ideas about what support should cost based on experiences they have with working with other technology vendors.  If your “gold” support is priced at 23% of product list price but other vendors are priced at 18%, customers may perceive that your prices are too high even though you offer more for the price. 

It is imperative that you price support reasonably so that you can make a compelling case that the benefits outweigh the costs to the customer.

Making the Case for Services

Selling services demands that you establish a credible and compelling value proposition built upon the entitlements customers want and need from services balanced with a reasonable and justifiable price level.

Featured: Selling Service Value

Selling services demands that you establish a credible and compelling value proposition. To be compelling, the benefits must exceed the cost. This playbook describes the essential steps to develop a compelling value proposition to maximize support sales and renewal activities. Log-in to get your copy.

Login to Access the Full Report

If you don’t have an account, create a free* membership.


*Membership level determines your access to ServiceXRG research and other member services. Paid memberships include access to research and playbooks. Free memberships include access to some reports and discounts to others. Please visit our membership page for a list of available membership programs.

Related Articles

Selling Service Value

Selling the value of service is making the case for why the customer is better off with it than without. This article explores the 5 critical steps for establishing a credible and compelling service value proposition.

read more

Top Reasons Why Customers Do Not Buy Services

Why don’t customers buy services? Because they believe they do not need the coverage or that they do not feel that the costs outweigh the benefits. Learn how to overcome customer objections by understanding what customers want from Support.

read more

Should you charge for support?

If you want to make money from support, you need to charge for it and most technology companies do. The majority (89.7%) of technology companies offer some form of fee based support option.

read more

Bad Attach? Is There Such a Thing?

If you only care about the first-year revenue from support and maintenance contracts, then any attach is a good attach. If you want to maximize revenue from the support annuity , then contract attach followed by a successful renewal is essential.

read more

Is it worth competing for Service Industry Awards?

There are a plethora of industry awards and recognition opportunities to provide a means to get recognized for your service initiatives. Is it worth your effort to pursue industry recognition though these awards – here are some of the pros and cons.

read more

Pin It on Pinterest

Share This