Learn the 13 MSP numbers that actually move profit. Host Josh Peterson breaks down revenue buckets, service gross profit, and the levers your service manager can pull today. Perfect for MSP owners and leaders who want clearer decisions, stronger margins, and a repeatable finance rhythm.

Episode Description → Josh Peterson (Bering McKinley) is joined briefly by former MSP owner Ryan Alter to challenge the myth that you need “hundreds of KPIs.” You’ll learn the few numbers that matter—and how to wire your P&L so your team can actually manage to them. This episode translates finance into field-ready actions for MSP operators, service managers, and fractional leaders. 👉 The 3 revenue buckets (service, product, resold cloud) and why your overall GP target centers around a weighted mix (aim ~42%). 👉 Service GP target (55%) and the critical ratio: service salaries to service revenue at ~33%—only possible if service payroll lives in COGS. 👉 Agreement Gross Profit (AGP): pricing vs. onboarding scope, why CW member costs & addition costs matter, and using the agreement GP report to verify reality. 👉 Effective Hourly Rate (EHR): how to calculate it (spendable revenue ÷ hours) and compare to rack rate (goal ≥1.125×) while staffing work at the right technician level. 👉 Billable utilization truths, calling out out-of-scope work without drama, and giving real P&L responsibility (and bonus levers) to your service manager. Visit https://beringmckinley.com for more MSP resources.

🔗 Resources & Links • Ryan Alter - Silverstream: https://www.silverstreamav.com • Bering McKinley MSP Consulting: https://beringmckinley.com

⏱️ Chapters 00:00 – Welcome & why only 13 numbers matter 02:18 – YouTube push, Riverside move, and “From the Trenches” 05:12 – The 3 revenue buckets and service sub-buckets 08:40 – Guest drop-in from Egypt (Ryan Alter) 10:05 – Chart of accounts cleanup & payroll in COGS 13:22 – Targets: 42% company GP, 55% service GP, 33% salaries ratio 18:10 – Agreement Gross Profit (pricing vs. scope; CW setup) 24:03 – Effective Hourly Rate (formula, rack rate multiple, staffing) 29:45 – Billable utilization and the skills pyramid 34:20 – Out-of-scope cadence and profitable “needy” clients 39:05 – Service manager P&L ownership & incentive design 44:12 – Perspective, resilience, and closing takeaways

✅ Enjoyed this episode? Like, subscribe, and share your biggest takeaway below.

🔍 Primary Keywords msp kpis, service gross profit, agreement gross profit, effective hourly rate

🔍 Secondary Keywords managed services finance, connectwise reporting, billable utilization, service manager incentives

#️⃣ Hashtags #beringmckinley #bmkvisionpodcast #msp #msplife #mspowner #mspgrowth #mspsales #mspprocess #kpis #grossprofit #connectwise #servicedelivery #utilization #agreements #effectivehourlyrate #managedservices #itservices #itbusiness