The Hidden Cost of “Cheap” IT: What Budget MSPs Aren’t Telling You

“You get what you pay for.”

It’s an old saying — but in IT, it’s painfully true.

On the surface, a low-cost managed IT services agreement may sound like a smart move: lower monthly fees, basic support, and maybe a few cybersecurity tools included. But dig deeper, and you’ll often uncover hidden fees, security gaps, and weak protections that can cost your business far more in the long run.

After reviewing hundreds of IT contracts over the years, we’ve seen the same patterns repeat again and again. Here are five costly ways “cheap” IT providers cut corners — and why they could be putting your business at risk.

1. Bare-Bones Cybersecurity That Leaves You Exposed

Cheap providers often install basic antivirus and call it a day. But true cybersecurity requires more:

• Multifactor authentication (MFA)

• Advanced endpoint protection

• Employee security training

• Immutable backups

• Compliance-level safeguards

Most budget MSPs skip these completely. And if your cyber insurance policy requires them (which it likely does), your claim could be denied after an attack.

We’ve seen businesses lose tens of thousands of dollars — not from hackers, but from negligence by their IT support.

2. Backups That Don’t Cover All Your Data

Many small businesses assume tools like Microsoft 365 or Google Workspace automatically back up their data. They don’t — not in a way that meets modern compliance or disaster recovery standards.

Budget IT providers often skip:

• Cloud platform backups (CRMs, project tools, etc.)

• Immutable or versioned backups

• Retention policies required by insurance or regulations

Ask your provider this: “What exactly are we backing up — and what are we not?”

3. Surprise Fees for On-Site or After-Hours Support

A common bait-and-switch: quote a low monthly rate, then charge extra every time you need:

• On-site help

• After-hours support

• Emergency response

The result? Your team hesitates to call support — and downtime costs you even more.

At Preferred, we believe in flat, transparent pricing. No games, no guessing, no sticker shock.

4. “That’s Not Our Problem” — No Vendor Support

Your Internet is down. Or your security cameras stop recording. Or the office printer won’t connect.

Some IT companies will say, “Not our hardware, not our job.”

Others will charge you by the hour just to talk to your vendor — or worse, refuse to help entirely.

We take full ownership of your environment. If it touches your network, we support it.

5. Entry-Level Techs and Zero Strategy

Maybe the biggest red flag? A one-man shop or a company that outsources support to undertrained 1099s.

You don’t just need someone to fix problems — you need a partner to prevent them.

Here’s what Preferred gives you instead:

• A dedicated account manager

• A clear IT roadmap

• Ongoing cybersecurity and backup reviews

• Compliance planning and budget forecasting

• Strategic, proactive support — not just “ticket takers”

  
  

Bottom Line: If It Looks Too Good To Be True, It Probably Is

Most small businesses don’t realize they’re under protected — until something breaks.

A ransomware attack. A compliance audit. A data loss that wasn’t backed up. That’s when the real cost of “cheap IT” becomes painfully clear.

The truth? If your IT provider isn't guiding you, protecting you, and proactively managing risk, then you’re overpaying — no matter what the price tag says.

Ready for a Second Opinion?

Let us take a look at your IT setup — no cost, no pressure. We’ll assess your current environment, identify potential gaps, and help you understand exactly what you’re getting (and what you’re not).

👉 Book your FREE IT Risk Assessment today www.preferred-office.com/contact We’ll help you cut costs the smart way — without cutting corners.