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 it before: you truly get what you pay for. This is especially true in the world of IT.

At first glance, a low-cost managed IT service plan might look appealing—lower monthly fees, basic support, and perhaps some cybersecurity features included. But if you look closer, hidden charges, limited coverage, and important exclusions often surface, leading to much higher expenses down the road.

After extensive experience reviewing IT contracts for small businesses, we've identified recurring pitfalls. Here are five common ways budget MSPs cut corners—and how those shortcuts can cause significant problems for your business.

1. Insufficient or Missing Cybersecurity Measures

Basic antivirus alone does not constitute true cybersecurity.

Yet many budget IT providers stop there—no two-factor authentication, no advanced endpoint protection, no employee security training, and no backup defenses if threats slip through.

Why is this critical? Cyber insurance providers now mandate robust cybersecurity protocols before issuing policies. Without them, your claims risk being denied after a cyberattack.

We've witnessed businesses lose tens of thousands of dollars because their MSP failed to implement necessary protections required by their insurer. This isn't just poor support—it's negligence.

2. Incomplete Backup Solutions That Risk Your Data

Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace provide full data backups.

In reality, these tools offer only basic backup features and are not designed for comprehensive disaster recovery or long-term data retention.

Low-cost or inexperienced IT providers often neglect backing up cloud apps, CRMs, and third-party services, leaving vital data vulnerable. Even worse, many fail to provide immutable backups, which are increasingly required by cyber insurance policies.

Think your backups are secure? Ask your current provider exactly what data they protect—and what they don't.

3. Hidden Charges for On-Site and After-Hours Support

Here's a common bait-and-switch: advertise a low monthly fee, then add extra charges whenever you require support outside regular hours or need an on-site visit.

We advocate for transparent, flat-rate pricing. But many providers exclude on-site visits, after-hours assistance, and emergencies from their base plans so they can add surprise fees later.

The consequence? You hesitate to call for help, and your team delays support requests, increasing costly downtime.

4. No Support for Vendors or Third-Party Devices

If you encounter problems with phones, internet, or security cameras, some IT firms simply say, "That's outside our scope."

They may even bill you hourly just to liaise with your other vendors. And if your printer or other devices aren't on their "approved" list, they might refuse to assist.

We provide comprehensive vendor coordination and network support for all technology connected to your business, because issues can originate from multiple sources.

5. Unskilled Technicians and Lack of Dedicated Account Management

A major warning sign is a "one-person operation" or a company relying on entry-level contractors without a strategic approach to your IT needs.

With budget MSPs, you might receive reactive help, but you won't get proactive guidance.

What you deserve is:

● A dedicated account manager who collaborates with you to develop a clear technology strategy

● Regular, proactive assessments of your cybersecurity, compliance, and backup integrity

● Budget planning and upgrade roadmaps

● A trusted advisor relationship—not just a ticket-based support system

Bottom Line: If It Sounds Too Good to Be True, It Probably Is.

Many small businesses remain unaware of their vulnerabilities until disaster strikes—whether a ransomware attack, server failure, or hefty compliance penalty.

By then, the damage is often irreversible.

If you want IT services that truly safeguard your business, you must look beyond just the monthly cost. Ask the tough questions, demand honest answers, and avoid contracts that leave you exposed.

Curious about what your current IT contract might be missing? Let us review your network at no cost. We'll identify any gaps, explain everything clearly, and provide straightforward advice on how to protect your business better.

Click here or call us at 609-676-3597 to schedule your FREE 15-Minute Discovery Call.