Table of contents
Episode Summary
In this episode of Syncronized, hosted by Brandon Garcin, we sit down with Travis Johnson, VP of Technology Operations at Infracore, to explore the overlooked world of contract management and negotiation for MSPs. Travis breaks down why contracts are more than just paperwork—they’re a strategic tool for protecting margins, avoiding unnecessary costs, and ensuring long-term business health.
Travis explains why many MSPs treat contracts as a “set and forget” process, missing key opportunities to optimize spending and eliminate redundant services. He shares actionable insights on tracking agreements, negotiating better terms, and leveraging competition among vendors to secure the best deals. His hands-on experience has helped businesses save significant amounts, sometimes even preserving jobs through smarter cost management.
Finally, Travis highlights the hidden pitfalls in contracts, from automatic renewals to unclear indemnification clauses. He offers practical advice on reading the fine print, asking the right questions, and approaching negotiations with confidence. This episode is packed with must-know insights for MSPs looking to strengthen their financial strategy.
Guest-at-a-Glance
💡Name: Travis Johnson
💡What they do: VP of Technology Operations
💡Company: Infracore
💡Noteworthy: Expert in contract negotiations, cost optimization, and MSP financial strategy
💡Where to find them: LinkedIn
Key Insights
Mastering Contract Negotiation for MSPs
Travis Johnson breaks down why contract negotiation is a critical yet often overlooked skill for MSPs. Many IT providers treat contracts as a routine formality, failing to recognize their potential as a strategic tool for financial health. Johnson highlights key techniques, such as leveraging vendor competition, setting clear contract terms, and identifying hidden costs. He shares real-world examples of successfully negotiating six-figure savings and ensuring agreements align with business goals. By approaching contracts with the right mindset, MSPs can maximize profitability and reduce unnecessary spending.
The Hidden Costs Lurking in Contracts
One of the biggest pitfalls in contract management is failing to spot hidden fees and restrictive terms. Johnson explains how clauses like automatic renewals, long-term lock-ins, and ambiguous indemnification terms can create financial risks for MSPs. Many businesses unknowingly pay for overlapping services, redundant software, or unexpected price hikes. He stresses the importance of regular contract audits, understanding termination clauses, and ensuring agreements allow for flexibility. By proactively managing contracts, MSPs can avoid costly surprises and maintain financial control.
Why MSPs Should Treat Contracts as a Business Strategy
Rather than seeing contracts as an administrative task, Johnson urges MSPs to view them as a financial strategy. Effective contract management can free up capital, improve cash flow, and even prevent job cuts within an organization. He shares how an MSP’s ability to negotiate smarter contracts can lead to stronger client relationships and increased retention. By developing a structured approach to contract oversight, MSPs can enhance their long-term financial stability and gain a competitive edge in the market.
Listener Takeaways
Why Contracts Matter More Than You Think
Contracts aren’t just legal formalities—they impact profitability, operations, and business stability. Travis Johnson discusses why many MSPs overlook contract management and how this leads to wasted spending, hidden costs, and financial vulnerabilities. He stresses that every business, not just IT, must regularly review agreements to prevent costly renewals and unnecessary services. Contracts should be an active part of a company’s financial strategy, not a passive obligation.
“You’ve purchased something, you’re in an agreement, whether it’s a product or a service. And things are just going well, and you kind of forget about the fact that this is a service or a product that I have to pay for… Maybe I paid for a year, two years, three years upfront. Maybe it’s a monthly cost, who knows? But you tend to forget about it.”
How MSPs Can Avoid Costly Vendor Mistakes
Many MSPs unknowingly waste money on redundant services and unoptimized vendor contracts. Johnson explains how businesses frequently pay for overlapping software, unnecessary tools, and inflated prices due to automatic renewals or lack of negotiation. By tracking agreements and analyzing spending, MSPs can cut costs while maintaining operational efficiency. He also emphasizes that MSPs can add value for clients by managing vendor contracts and optimizing expenses.
“They have Teams licenses, Zoom licenses, Webex—you name it—and they’re all doing the same thing, and they’re paying for each one of these services. So it’s really important to have an understanding of what you have, how much you’re paying for it, when it renews, and whether it’s redundant.”
The Power of Negotiation: Why You Should Never Accept the First Offer
Negotiation is a skill that can save businesses thousands of dollars. Johnson shares his strategy for securing better vendor deals by comparing multiple providers, creating a pricing matrix, and pushing sales reps to compete for business. He reveals a simple yet effective tactic—getting vendors to ask, “What do I need to do to get your business?”—as a sign that they’re willing to lower prices. Every MSP should approach contract discussions with confidence, knowing there’s almost always room for negotiation.
“Once the salesperson says, ‘What do I need to do to get your business?’ that’s when you know you’ve got them. And that’s the phrase you never want to say as a salesperson. That’s where I push them to get.”
How Exit Clauses Can Save You Thousands
A bad contract can lock businesses into costly agreements with no way out. Johnson explains why the exit clause is the most important part of any contract. If service quality drops or a better deal emerges, a well-structured exit clause ensures the business isn’t trapped. He shares real-world examples where companies were forced into expensive renewals because they didn’t provide cancellation notice in time. He advises every MSP to carefully review exit terms before signing.
“I can’t tell you how many times I’ve seen people get roped into a renewal because they needed to provide 90 days of notice that they were going to cancel. And here they are at 60 days, and now they’re locked into another year-long contract.”
Syncronized is the MSP podcast that drives MSP growth, from startup to scale-up. In each episode, we dive into the topics that matter most to IT providers, such as automation, AI, service delivery and profitability. Join us as we engage with experts and gain hands-on insights and practical advice you can directly apply to propel your business forward.
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