Core Features

Tool Economics: Turn Compliance Gaps Into Revenue

AI recommends the exact tools clients need with instant cost estimates. Configure pricing once, quote unlimited clients automatically.

The Tool Quoting Problem: Hours Wasted on Every Client

The client has compliance gaps. You have the tools to fix them. But quoting takes hours:

Manually identify which tools are missing
Research what each tool costs
Calculate pricing for this client's user count
Build a proposal document
Explain why each tool is needed

What if AI did the quoting for you? Gap analysis identifies which tools clients need, and pricing is calculated automatically.

Tool Economics: Automated Gap-Based Recommendations

When gap analysis identifies missing tool categories (EDR, Backup, MFA, etc.), the system automatically recommends tools and calculates client pricing in real time.

Gap-Driven Recommendations

Only recommend tools that close specific compliance gaps. Every recommendation tied to framework controls:

Example: "EDR Required for NIST 800-171 3.14.1 (System Monitoring), 3.14.2 (Malicious Code), 3.14.6 (Monitoring Communications). This tool closes 15% of your compliance gap."

Automated Pricing Calculation

Configure pricing once, quote everywhere. System calculates client pricing automatically based on your markup rules:

MSP cost: $10/user (what you pay vendor)
Markup rule: 30% percentage markup
Client price: $13/user (auto-calculated)
Client with 25 users: $325/month (instant quote)

Upsell Opportunity Tracking

See potential tool recommendations from every client's gaps. Sort clients by upsell opportunity, prioritize high-value conversations.

5 Pricing Models to Match Your Business

Compliance Scorecard supports 5 pricing models. Choose the strategy that fits your MSP:

1. Passthrough

Client pays same as your MSP cost. No markup, transparent pricing.

Example: MSP cost = $10/user → Client price = $10/user

Best for: Non-profit clients, cost-plus billing models

2. Percentage Markup

Add percentage margin to MSP cost. Most common model.

Example: MSP cost = $10/user + 30% markup → Client price = $13/user

Best for: Standard MSP pricing, consistent margins

3. Fixed Markup

Add fixed dollar amount per unit. Predictable margin per seat.

Example: MSP cost = $10/user + $5/user → Client price = $15/user

Best for: High-touch services, enterprise tools

4. Custom Price

Set specific price per client. Override automatic calculation.

Example: MSP cost = $10/user, Client price override = $20/user

Best for: Enterprise contracts, negotiated pricing, bundled packages

5. Included

Tool bundled in service package. Client pays $0 (you absorb cost).

Example: Microsoft Defender included in Premium tier → Cost message: "Included in your service package"

Best for: Value-adds, competitive differentiation, margin protection

How It Works: Configure Once, Quote Everywhere

Step 1: Configure Tool Pricing (One-Time Setup)

Go to Dashboard → AI Setup → Tools

Add Tool: Name, category, description
Set MSP Cost: What you pay vendor (e.g., $10/user)
Choose Cost Type: Per-user, per-device, flat monthly, included, usage-based
Configure Client Pricing: Select pricing model (passthrough, percentage, fixed, custom, included)
Set Markup: Enter percentage (e.g., 30%) or fixed amount (e.g., $5)
Save: Pricing rules apply to all clients automatically

Step 2: Run Gap Analysis for Client

Select client, choose framework (NIST 800-171, CMMC L2, ISO 27001, etc.), run analysis.

AI identifies missing tool categories based on framework requirements.

Step 3: View Gaps with Pricing

The gap analysis report shows:

Priority Level: Critical, High, Medium, Low
Category: Missing tool type (EDR, Backup, MFA, etc.)
Why Needed: Framework controls requiring this tool
Coverage Impact: Percentage increase if deployed (e.g., +15%)
Your Tools: Tools you offer with client pricing calculated
Suggested Alternatives: Top 3 tools from vendor catalog (awareness only)
Estimated Cost: Client price displayed (e.g., "$13.00/user/month")

Step 4: Calculate Total Gap Closure Cost

System summarizes the total monthly cost to close all gaps:

Example Client (25 users):

Missing EDR: Huntress @ $13/user × 25 = $325/month
Missing Backup: Veeam @ $8/user × 25 = $200/month
Missing MFA: Duo (Included) = $0/month
Missing Vuln Scan: Tenable @ $150/month (flat) = $150/month

Total Monthly Investment: $675

Coverage Increase: 65% → 100% (+35%)

Compliance Status: Non-Compliant → Fully Compliant

Step 5: Send Proposal, Close Upsell

Export gap report with pricing as a PDF. Send to client: "Close your compliance gaps for $675/month."

Client sees clear value: Non-compliant → Compliant. MSP sees profit: $675 client price - $475 cost = $200/month margin.

Gap Analysis with Tool Economics: Real Example

Client running NIST 800-171 gap analysis. Current coverage: 65%. Missing 5 required tool categories.

Gap 1: EDR (Critical Priority)

Why Needed: "Endpoint Detection and Response required for NIST 800-171 3.14.1 (System Monitoring), 3.14.2 (Malicious Code), 3.14.6 (Monitoring Communications)."

Coverage Impact: +15% (this tool alone closes 15% of compliance gap)

Your Tools:

Huntress: Managed EDR with threat hunting
Estimated cost: $12.00 per user/month
Microsoft Defender for Endpoint: Enterprise EDR
Included in your service package

Suggested Alternatives: SentinelOne Singularity, CrowdStrike Falcon, Carbon Black Cloud

Gap 2: Backup (Critical Priority)

Why Needed: "Backup & Disaster Recovery required for NIST 800-171 3.8.9 (Information Backup)."

Coverage Impact: +10%

Your Tools:

Veeam Backup: Cloud and on-prem backup
Estimated cost: $8.00 per user/month

Summary: Total Gap Closure Estimate

Missing Required Categories: 5
Missing Recommended Categories: 3
Current Coverage: 65%
Coverage with Recommendations: 100%
Estimated Monthly Cost: $450.00
Estimated Annual Cost: $5,400.00

MSP Upsell Dashboard: Prioritize Client Opportunities

View all clients' gap analysis results. Sort by tool recommendations and compliance priorities.

Filter Clients by Opportunity

Critical Gaps: Clients with high-priority missing tools
High-Value Recommendations: Highest margin tools (sort by profit)
Quick Wins: Low effort, high compliance impact (easy sells)

Example: Multi-Client MSP Use Case

Scenario: MSP runs gap analysis across client portfolio.

Result: Identify which clients need which tools, with pricing configured.

Tool Economics helps MSPs:

Prioritize conversations: See which clients have tool gaps
Present pricing: Show tool costs with your markup
Track opportunities: Dashboard shows all client recommendations

Value: Turn compliance gaps into tool recommendations with transparent pricing.

Your Tools vs. Suggested Alternatives

The gap analysis recommends your tools first (upsell priority) and then suggests alternatives from the vendor catalog (client awareness).

MSP Tools (Your Recommendations)

Tools you've configured in AI Setup → Tools. These appear first in gap recommendations:

Your pricing rules applied automatically
Client sees exact cost (e.g., "$12.00/user/month")
Tools you already deploy and support
Prioritizes your revenue opportunity

Suggested Tools (Vendor Catalog)

Top 3 alternative tools from VendorTool database (1,200+ tools, 41 categories):

Shows client what else exists in the market
Builds trust (you're not hiding options)
Pricing model displayed (per-user, per-device) but not exact price
Client can request tools not in your catalog

Why show alternatives? Transparency builds trust. Clients appreciate knowing their options. If they want a different tool, you can add it to your catalog and configure pricing.

Pricing Calculation Logic

How the system calculates client pricing automatically:

Formula by Pricing Type

Passthrough: Client Price = MSP Cost
Percentage: Client Price = MSP Cost × (1 + Markup% / 100)
Fixed: Client Price = MSP Cost + Fixed Amount
Custom: Client Price = Custom Price Override
Included: Client Price = $0.00

Example Calculations

Percentage Markup (30%):

MSP Cost: $10.00/user
Markup: 30%
Client Price: $10.00 × 1.30 = $13.00/user
Profit: $3.00/user
Margin: 23.08% ($3.00 / $13.00)

Fixed Markup ($5):

MSP Cost: $10.00/user
Markup: $5.00
Client Price: $15.00/user
Profit: $5.00/user
Margin: 33.33% ($5.00 / $15.00)

Cost Types Supported

Different tools have different pricing models. System handles all common types:

Per-User

Cost per user/license. Most common for SaaS tools.

Example: Microsoft 365, Duo MFA, Huntress EDR

Calculation: Cost/user × User count = Total cost

Per-Device

Cost per device/endpoint. Common for endpoint security.

Example: SentinelOne, CrowdStrike, antivirus

Calculation: Cost/device × Device count = Total cost

Flat Monthly

Fixed monthly cost regardless of user/device count.

Example: Tenable Nessus vulnerability scanner, firewall subscriptions

Calculation: Fixed cost (no multiplication)

Per-Client

Cost per client organization (common for managed services).

Example: vCISO services, managed SIEM

Usage-Based

Cost varies by usage (data volume, API calls, etc.).

Example: Cloud backup (per GB), log management (per GB/day)

Included

Bundled in a service package. No separate charge to client.

Example: Tools included in the Premium tier to differentiate from the Basic

Security & Privacy

Client Pricing Privacy

Clients see: Estimated cost message (e.g., "$12.00/user/month")
Clients don't see: MSP cost, profit margin, markup percentage
MSPs see: All pricing details (cost, markup, profit, margin%)

Pricing Data Protection

MSP pricing configurations are stored in the msp_tools table with role-based access control (RBAC). Only MSP admins can view/edit pricing. Clients cannot see MSP's cost or profit margins.

Integration with Other Features

Gap Analysis Reports (Feature 16)

Primary use case. Every gap analysis report includes tool recommendations with pricing.

AI Reports

Executive summaries include tool recommendations with cost estimates for remediation.

AI Setup Wizard (Feature 06)

Step 1: Tools. Configure tool catalog and pricing rules.

VendorTool Catalog (Feature 05)

Provides suggested alternative tools (top 3 per category) from 1,200+ tool database.

Real Production Metrics

Current Usage

Tools Configured: 20+ tools with client pricing configured
Gap Analysis Reports: 19 generated with pricing recommendations
Pricing Models: All 5 models in production use
Average Markup: ~30% (typical MSP margin)

Time Savings

Before Tool Economics: 2 hours to quote tools per client
After Tool Economics: 5 minutes (95% time reduction)
Per 10 Clients: 20 hours saved → 50 minutes

Tool Economics Limitations

We believe in transparency. Here's what you should know:

Pricing is Estimated, Not Contracted

Client pricing shown is based on your configured markup rules
Actual pricing may vary (volume discounts, enterprise contracts, etc.)
Disclaimer: "Pricing shown is estimated. Final pricing confirmed at time of purchase."

No Volume Discount Auto-Calculation

You set one per-user price (e.g., $12/user)
Does not auto-adjust for volume discounts (e.g., 50+ users get 10% off)
Workaround: Use custom price override for large clients

Single Pricing Rule Per Tool

One pricing model per tool applies to all clients
Cannot have different markups for client tiers without manual overrides
Example: Can't automatically charge Silver clients 20% markup, Gold clients 10%
Mitigation: Use custom price override for specific client tiers

Suggested Tools Limited to Top 3

Vendor catalog shows only 3 alternative tools per category
May miss best option if not in top 3 by popularity/rating
Workaround: MSPs can manually search VendorTool catalog

Currency: USD Only

Pricing displayed in USD only
No multi-currency support for international MSPs
Roadmap: Multi-currency Q4 2026

Who Benefits from Tool Economics?

MSPs with Standardized Tool Stacks

Offer the same tools to all clients (Huntress, Veeam, Duo, etc.). Configure pricing once, quote every client automatically.

vCISOs Running Gap Analyses

Gap analysis reports show clients exactly what tools they need with instant cost estimates. Professional proposals in minutes, not hours.

MSPs Targeting High-Growth Segments

Identify which clients have highest upsell potential. Prioritize outreach to clients with $500+/month gap closure opportunities.

Cost-Conscious MSPs

Ensure consistent margins across all tool sales. Never accidentally under-price (or over-price) a tool quote.

Roadmap: What's Coming

Q2 2026: Client-Tier Pricing

Automatic markup rules by client tier (Bronze/Silver/Gold). No more manual overrides for enterprise clients.

Q2 2026: Volume Discount Auto-Calculation

Set tiered pricing (1-25 users: $12/user, 26-50 users: $10/user, 51+ users: $8/user). System auto-calculates based on client size.

Q3 2026: Multi-Currency Support

Display pricing in USD, EUR, GBP, CAD. Auto-convert based on client location or preference.

Q3 2026: Profit Margin Visibility Toggle

MSPs can choose to show profit margin to clients (transparency builds trust). Default: hidden.

Q4 2026: Contract Integration

Generate Master Service Agreements (MSAs) with tool pricing from gap analysis. One-click proposal to contract.

Q4 2026: Portfolio Analysis

Analyze compliance gaps across your entire client portfolio. Identify common tool gaps and prioritize recommendations.

Get Started with Tool Economics

Tool Economics is included with v10 at no additional cost. Configure your first tool in 5 minutes, and start quoting clients automatically.

Quick Start Steps:

Configure Tools: Dashboard → AI Setup → Tools → Add your tool catalog with pricing
Run Gap Analysis: Select client → Choose framework → Run analysis
View Recommendations: See missing tools with client pricing calculated automatically
Send Proposal: Export PDF, send to client, close upsell

Schedule Demo

See Gap Analysis Feature

Questions? Read the FAQ or contact our team.