SPA Pricing Education, Analytics & Decision Making Tools Webinar Series

3 Fundamentals of Value Pricing for Getting a Better Price | Accountex Report

Value pricing is transforming the way many accounting firms are now pricing their services — and the profits they are making.

The challenge is, however, is that value pricing isn’t easy to implement. We have to understand the basic fundamentals and here are three of the most critical ones.

Mark Wickersham will present the sessions, PRICING SECRETS: THE VALUE PRICING FORMULA THAT REVEALS HOW TO GET A BETTER PRICE, and CHANGING CLIENTS’ LIVES THE FAST WAY: THE NEW SERVICE OFFERING EVERY FIRM OF THE FUTURE WILL WANT TO OFFER, at Accountex 2017.

1st Fundamental: Pricing Face-to-Face

You absolutely must have a price conversation face-to-face with your client.

The reason for is very, very important. You have to involve the client in the process. You have to ask the client questions in order to understand what they want, and what they value. Until you know what they value you can’t come up with a value-based price. And as part of that face-to-face meeting — once you fully understand their wants, needs, and what constitutes value to them — you have to agree on the price with them.

Let me share with you a big mistake I used to make, so you can avoid it.

When I ran my own accounting firm, which I started back in 1996, I had many meetings with prospective clients. During the course of the meeting I would impress them with the things that I could do (tax planning ideas and business advice) and then inevitably they asked the question, “So how much will it cost?”

Panic would set in and I would respond, “I don’t know, I’ll have to go away and think about it.” And so I would go away and create a written proposal and send it to them.

That is the worst thing you can possibly do.

When you send your price proposal through the physical mail or electronically, you are out of control of the process. It is almost certain they will immediately skip to the section showing the price. And they’ll make an instant judgement (typically, “That’s expensive”) based on that price, without reading the rest of the proposal.

Read complete article here:

3 Fundamentals of Value Pricing for Getting a Better Price – Accountex Report.