6 Tips to Make the Move to Value Pricing – A Recap
Accountants, the time has come to shake up the way you do business. The traditional hourly billing model─It’s a thing of the past. If you want to grow your firm and demonstrate your real value to clients, transitioning to value pricing is the way forward. Here’s why it matters and how you can make the […]
Key Drivers of Success for Accounting Businesses
This is just a glimpse of what’s inside our 2024 Accountants Benchmark Report. Dive into the latest industry trends, key performance metrics, and expert commentary from Rob Nixon. Get your hands on the full report here: Download free Success Drivers I believe that for how smart you are, for how much value you add, and […]
The Expert Accountant
This Accounting firm’s focus on expertise has generated them an additional $700,000 in fees in just one year. Here’s how they did it. Joe and Charlie (yes their real names!) from Jebran and Abraham had just become joint partners of Charlie’s firm. Both CPA’s have a strong background in franchising from prior businesses and they […]
Realization %
Measuring and targeting realization percentage is a BAD idea. Here’s why… The traditional practice model is fundamentally floored for maximum performance. Most firms are either: 1. “time X rate – write off = Price” (time based billing in arrears) or… 2. “Implied (internal to team) price = dollars budget to team member” or … 3. […]
Prices don’t matter
I want to talk about stuff that’s CRITICAL if you want to keep growing your business.
Lead generation.
Because you have a lead generation strategy, right?
Don’t worry – if you chuckled or are wondering what you just read, you are not alone. Many accounting firms don’t pay much attention to the active lead generation.
New clients just magically appear, right?
Increase your charge rates?
I wanted to talk about your business model – and the money that you charge for your services.
If you’re a “standard” accounting firm, I bet your business model can be broken into the following steps:
– Complete a service
– Charge for the hours that you’ve worked
If yes, then it’s likely that you’ve trapped yourself in a transactional relationship.
Offer Value Not Time
Many of my clients when they first came to me, found themselves with, what they thought was, maximized hourly rates.
No matter how many extra services they added, they thought they just couldn’t justify increasing the amount that they charged for every hour of their time.
Not to mention that often, they spent more hours doing the work than they would charge their clients for!
Overworking and undercharging?
How often do you find yourself working way more than you charged for?
If you work long hours, delegate very little, and do work that you don’t charge a proper amount for, you’re making the three mistakes that are killing most accounting businesses.
In fact, these are one of the most common problems that keep the people who come to me for help from growing. The good news is, your accounting firm doesn’t have to look like that forever.
Seven Tips for Building The Courage To Raise Prices In Your Accounting Firm
Tackling the price increase conundrum is pretty scary business. With these tips, you’ll build the courage to do it.
How open are you to making changes in your firm?
I think it’s an important question. Change requires upheaval. It requires you to throw a wrench in the works and mess with the status quo.
Value Pricing
When I start coaching an Accounting firm many tell me at the outset that they are ‘value pricing’. I ask them a few questions, do a couple of equations (around average hourly rate) and very quickly I deduce that they are not.
They may be pricing up front, offering fixed fees per month, fixed fees per project, have no time sheets and maybe even charging ‘by the form’ but it doesn’t mean they are value pricing.
