Most of my colleagues agree the that hardest part of our job as accountants is pricing our services with a flat fee (instead of just quoting a simple hourly rate). There are so many moving parts to fixed rate pricing and value-based pricing, that a single article could not do it any justice.
If I wanted to oversimplify the concept it would be this way:
- Price every job based on the customer’s needs, not based on the job’s effort
- Have a meaningful Value Pricing conversation about “WHY” the client wants to hire you and find out which services are high value versus low value (or no value)
- Offer three service options that remember a “Good, Better, Best” approach, where the lowest or “Good” pricing option offers the bear minimum the customer needs to stay compliance and solves the most immediate problem. The middle or “Better” option is your sweet spot where you can solve the client’s immediate issue and you start to create some valuable work that creates measurable results. And the highest or “Best” option will be reserve to 10 to 20% of your customers that want the “the works” and for you to guarantee results, lowering most of the risks for your customers.
The best way to display them is in a 3 column format such as this one:
And make sure to include:
- Name and Description for each service
- Fixed Price for each service
- “Setup Fee” if applicable based on the service
- You included and excluded scope options (the actual work and results you will provide)
- Also include the Service Delivery Options, which dictate “HOW” the service will be delivered such as terms of payment, timing, access level to talent in the firm, e-mail communications, etc…
- And additional “sub-option” add-ons,, just in case the customer wants to add one-off services in the future and they are already priced!
Watch this excerpt from my 5-hour Value Pricing Master Class I did a few weeks ago:
If you really want to master value pricing, I suggest you read Ron Baker’s Implementing Value Pricing, every I learned about this subject matter, I have learned from him!
You can also take my 5-hour Value Pricing course for $250 @ www.valuepricing.net All my templates (including the one shown above are included in the virtual course)
You can e-mail me: hector@garciacpa.com if you have any questions
