Sad IT professional next to $99/month price tag with downtime, ransomware, compliance, and data loss risks.

The Hidden Cost Of “Cheap” IT

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 low-cost managed IT services plan might seem like a bargain—lower monthly fees, basic support, and perhaps a few cybersecurity features included. But if you look closer, hidden fees, limited coverage, and critical exclusions often lurk beneath the surface, leading to much higher expenses down the road.

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 create expensive problems for business owners.

1. Inadequate or Missing Cybersecurity Measures

Basic antivirus alone does not constitute proper cybersecurity.

Yet, many low-priced IT providers stop there—no two-factor authentication, no advanced endpoint protection, no employee cybersecurity training, and no backup defenses if a threat bypasses initial safeguards.

Why is this critical? Cyber insurance companies now mandate robust cybersecurity protocols before issuing policies. Without these, your claim could be rejected after a cyberattack.

We've witnessed companies lose tens of thousands of dollars because their MSP failed to implement the cybersecurity their insurance required. This is not support—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 their data.

In reality, these platforms provide only basic backup capabilities and are not designed for comprehensive disaster recovery or long-term data retention.

Budget or inexperienced IT providers often neglect backups for cloud apps, CRMs, and third-party systems, leaving vital data vulnerable. Even more concerning, many do not offer immutable backups, which are increasingly required by cyber insurance policies.

Think your backups are secure? Verify with 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, then tack on extra charges whenever you require support outside regular business hours or need an on-site visit.

We advocate for transparent, flat-rate pricing. Unfortunately, many providers exclude on-site visits, after-hours assistance, and emergency support from their base fees to maximize profits.

This leads to hesitation when calling for help, causing your team to delay necessary support and increasing costly downtime.

4. Lack of Support for Vendors and Third-Party Devices

Experiencing issues with your phones, internet, or security cameras? Some IT firms will simply say, "That's not our responsibility."

They may even charge hourly fees just to communicate with your other vendors. If your printer or other hardware isn't on their "approved" list, they might refuse service altogether.

We provide comprehensive vendor coordination and full network support for all technology connected to your business, because problems can arise from any source.

5. Unskilled Technicians and No Dedicated Account Management

A major warning sign is a "one-person operation" or a company that employs entry-level technicians on 1099 contracts without a clear support strategy.

Budget MSPs may provide basic assistance, but they rarely offer strategic guidance.

What you deserve is:

A dedicated account manager to help design your technology roadmap

Regular proactive evaluations of your cybersecurity, compliance, and backup systems

Budget planning and upgrade scheduling

A trusted advisor—not just a tech support ticket responder

Final Thought: If It Sounds Too Good to Be True, It Probably Is.

Most small businesses remain unaware of their vulnerabilities until disaster strikes—be it a ransomware attack, system failure, or costly compliance penalty.

By then, the damage is done.

To truly protect your business with IT services, you must look beyond just the monthly cost. Ask tough questions, demand clear answers, and avoid contracts that leave you exposed.

If you want a thorough review of your current IT setup, let us analyze your network. We'll assess your existing solutions at no cost, identify any gaps, and provide straightforward, jargon-free advice on how to secure your infrastructure.

Click here or call us at 419-678-2083 to schedule your FREE 10-Minute Discovery Call.