M365 Price Increase:
What MSPs Need to Know Before July 1

What's Actually Changing

Microsoft is eliminating the discount that monthly-billed M365 subscriptions have historically had versus annual commitments. The practical effect: clients on month-to-month billing will see approximately 11–15% higher per-seat costs starting July 1.

Annual commitment pricing (pay monthly or pay upfront) is not changing. If all your clients are on annual agreements, you may have nothing to do. But if you have any month-to-month seats — legacy accounts, trial clients, clients who refused annual commitments — those are the ones to audit now.

-- Run this in your PSA or billing tool:
-- (adjust column names to match your system)

SELECT 
  client_name,
  seat_count,
  current_monthly_per_seat,
  seat_count * current_monthly_per_seat AS current_monthly_total,
  seat_count * (current_monthly_per_seat * 1.13) AS new_monthly_total,
  seat_count * (current_monthly_per_seat * 0.13) AS monthly_increase
FROM m365_subscriptions
WHERE billing_type = 'monthly'
ORDER BY monthly_increase DESC;

Why You Should Tell Them Now

The worst outcome isn't the price increase — it's a client seeing a higher bill in July with no warning and calling to complain. That conversation will be defensive and reactive. You'll spend 20 minutes explaining something you could have addressed in 2 minutes with a proactive email today.

Proactive communication does three things:

• 1.Demonstrates you're watching their costs. This is account management. Clients who feel watched over don't shop around.
• 2.Gives you an upsell angle. Moving a client from monthly to annual often saves them more than the increase costs — and locks in their contract.
• 3.Sets you apart from every MSP who says nothing. Most will wait. You won't.

Client Email Template

Copy this verbatim or adapt it. Send from your account manager's email, not a generic support alias. Put the client contact's name in the subject line if you can.

Fill in [X seats], [current/new/delta] from your billing system. Replace [calendar link] with Calendly or your booking URL.

Automate the Notification with n8n

If you have more than 10 affected clients, don't send these manually. Here's a quick n8n approach:

1. 1.
   Export a CSV from your PSA/billing tool with columns: client_name, contact_email, seat_count, monthly_per_seat, account_manager_email.
2. 2.
   n8n: Read CSV → Code node to calculate current total, new total, and delta per client using a 1.13 multiplier.
3. 3.
   n8n: Send Email node with the template above, substituting variables from the Code node output.
4. 4.
   Optional: Log to Google Sheets which clients were notified and the date, so you can track who responded.

// n8n Code node — calculate M365 price increase per client
const MULTIPLIER = 1.13; // update when Microsoft confirms final %

const client = $json; // from CSV or PSA API
const currentMonthly = client.seat_count * client.monthly_per_seat;
const newMonthly = currentMonthly * MULTIPLIER;
const delta = newMonthly - currentMonthly;

return [{
  json: {
    ...client,
    current_monthly: currentMonthly.toFixed(2),
    new_monthly: newMonthly.toFixed(2),
    monthly_delta: delta.toFixed(2),
    annual_impact: (delta * 12).toFixed(2),
    recommend_annual: delta > 15 // flag for annual conversion pitch
  }
}];

This pattern — CSV/API → Code → Email → Log — works for any bulk client notification. The contract renewal reminder workflow in the Starter Pack uses the same structure.

Turning This Into a Win

Every month-to-month client you move to annual between now and July 1 is a client who:

• ✓Avoids the price increase (they'll remember you saved them money)
• ✓Is now on a 12-month commitment (locked, not at risk of mid-year churn)
• ✓Has a reason to trust you as a strategic advisor, not just a helpdesk

For a 15-seat client at $22/seat monthly, the switch saves them ~$37/month (or $444/year). That's an easy conversation. Frame it as “I found a way to save you $444 this year,” not “prices are going up.”