Squeezing MSP Margins: Why Vendors Think They Own Your Client | EP180

SaaS vendors are aggressively raising prices, cutting reseller margins, and squeezing MSP profit margins to satisfy investor expectations. Between forced AI additions, changing reseller tiers, and minimal advance notice, running a profitable MSP feels like a constant battle against your own stack. In this episode, Eric and Justin dive straight into the absurdity of current vendor behavior, exploring whether it still makes sense to front licensing costs for clients or if MSPs should push clients to pay vendors directly. They break down the real-world operational risks of handling client billing, discuss the growing temptation to vibe code lightweight SaaS replacements, and map out practical strategies for passing costs down to clients before margins disappear completely.

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Justin Esgar LinkedIn: https://www.linkedin.com/in/justinesgar/
Eric Anthony LinkedIn: https://www.linkedin.com/in/esanthony/
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