Stop Losing Money On Clients (EP 998)
A candid conversation with Larry Cobrin from MSPCFO on what your PSA is really telling you about client profitability, contribution per hour, and which customers you should probably fix or fire. We also dig into AI, private equity expectations, and why bad data can still wreck your decisions even with the best tools.
I sat down with Larry Cobrin, founder and CEO of MSPCFO, to unpack how MSPs can turn messy PSA data into a clear picture of which clients are actually profitable and which ones are quietly draining the business. Larry broke down the idea of treating clients like a portfolio, normalizing profitability with contribution per hour, and using that lens to decide whether to improve, protect, or let go of certain accounts.
We also talked about how this ties directly into EBITDA and exit planning, especially as more private equity money flows into the MSP space and buyers expect real, reliable reporting instead of gut feel. I shared my own story about firing my largest client when the time and revenue just didn’t line up, and we connected that experience back to the numbers Larry sees every day inside MSPCFO. From there we shifted into AI, the risks of “DIY analytics,” and why confident answers from dirty PSA data can be more dangerous than having no data at all.
Florida Man Working as a Ransomware Deploys Ransomware and Extorts U.S. Victims https://linkly.link/2hlAQ
Chapters
- 00:30 Welcome to the IT Business Podcast
- 00:59 Beyond the Buzzwords
- 04:53 Shout Outs and Announcements
- 06:38 Introducing Larry Coburn
- 08:24 Understanding Client Profitability
- 12:57 Contribution Per Hour Explained
- 17:09 Internet Issues and Client Stories
- 23:38 Florida Man Story
- 27:30 Returning to Larry Coburn
- 34:53 The Value of Client Portfolios
- 38:23 AI and MSP Profitability
- 43:35 Larry's Journey to MSP CFO
- 50:24 Upcoming Events and Appearances
- 53:29 Closing Thoughts and Thanks
Guest: Larry Cobrin, MSPCFO
- Website: https://www.mspcfo.com
- LinkedIn: https://www.linkedin.com/in/larry-cobrin/
Shout-out
- Jason Miller: https://www.linkedin.com/in/jason-miller-32a03530/
- Kyle Kenyon: https://www.linkedin.com/in/kkenyonprotechguy/
- Tom Wyant: https://www.linkedin.com/in/thomaswyant/
- Mike Smith, Mike Tech Show: https://www.linkedin.com/in/smithmh/
- Martin Obando: https://www.linkedin.com/in/mobando/
- Amy Babinchak: https://www.linkedin.com/in/amybabinchak/
Companies / Vendors / Products Mentioned
- MSP Unplugged: https://www.facebook.com/groups/mspunplugged
- Nerdio: https://getnerdio.com
- Vultr: https://www.vultr.com
- Mike Tech Show: https://mikenation.net/
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