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In this episode of the All Things MSP podcast, hosts Justin Esgar and Eric Anthony dive deep into the often-misunderstood world of profit margins. While many MSP owners focus heavily on top-line revenue, the guys explain why that number can be a "vanity metric" if your margins aren't healthy. They break down the fundamental math of profitability: Revenue minus Expenses equals Profit. However, the conversation goes much deeper than basic arithmetic. Justin and Eric discuss the industry standard margins—typically sitting between 10% and 15%—and challenge listeners to aim significantly higher. You’ll hear why a 30% or even 40% margin isn't just a dream, but a necessary cushion for when things go "bump in the night." The episode covers the difference between gross margin and net profit, the psychological relief of having a profitable business, and why you should stop comparing your "raw" revenue to others. Whether you are just starting out or looking to optimize a mature MSP, this episode provides a reality check on what it actually takes to build a business that supports your life and your team. Try out our new pricing calculator: https://allthingsmsp.com/calculator Thank you to our premier sponsors: Sync365: https://atmsp.link/sync365 Gozynta: https://atmsp.link/gozynta EasyDMARC: https://atmsp.link/easydmarc Compliance Scorecard: https://atmsp.link/compliancescorecard Connect with the Hosts: Justin Esgar: / justinesgar Eric Anthony: / esanthony Join the Community: Facebook Group: / allthingsmsp LinkedIn Page: / allthingsmsp YouTube Channel: / @allthingsmsp Thanks for Watching! All Things MSP is a community for managed IT service providers, IT service providers and independent computer repair people who want to grow their businesses and share best practices. From their managed services pricing, business plan or even support automation, we discuss it all. IT service business owners of all types can participate and share business ideas. We also invite IT service vendors who support the channel to participate as well so long as they follow the group rules. Here is a short list of some of the topics we discuss: IT Services Marketing IT Services Sales IT Services Pricing IT Services Contracts & Managed Services Agreements Managed Services Automation & Processes Managed Services Tools Managed IT Services For more MSP related content please go to our Facebook Page: / allthingsmsp And join our private Facebook Group: / allthingsmsp Karl Palachuk’s Book Managed Services in a Month: • Episode 21 - How To Lose Customers The opinions and statements by myself or All Things MSP are my own and do not reflect the opinions or positions of Egnyte #MSP #ManagedServices #ITServices #ITServiceProvider #computerrepair #nosmallcreator