Colin Dunn
Co-founder
November 6, 2022
2
min read

Pricing is a touchy area for both clients and professionals, with accountants too often finding themselves unnecessarily reducing price to ensure they gain new work. However, our ReNew Your Pricing Module rejects this mindset, providing a simple new framework for revitalizing your pricing process. Here are three tips on pricing taken from our active discussion forum: 
 

  1. Instead of charging based on hours worked, you should instead set prices based on the complexity of the work being done and more specifically, the VALUE and OUTCOMES to the client of that work. Accounting work is not a singular, rigid service — it encompasses various different processes requiring various levels of expertise; often you will find that your years of experience can create significant value for your client, and the price you charge should reflect this.
  2. Instead of only receiving payment after you’ve completed the work, price up-front. When you do this, you are signaling to clients the confidence that you have in the firm’s ability to effectively and efficiently create value for the client. When people buy something, they will often do so seeking assurance in the quality of the product; therefore, if the service they choose is certain of its capability to provide what it is they are offering, the client will not see a larger upfront price as a drawback, but as a mark of quality, and happily pay in advance. Moreover, if clients are pay upfront, they will want to work with you to ensure the best possible outcomes so they can get value for money, incentivizing them to provide you with necessary information faster, and build a better relationship with the firm.
  3. Finally, you should never reduce prices in order to onboard new clients. Though it’s easy to be apologetic about your pricing, if you know that the work you'll do will provide valuable outcomes, then there is no reason to lower the price. Every potential client has the ability to walk away if they want to, so do not fall into the trap of thinking that lowering prices will automatically bring in the work. Instead, price with the goal of winning the greater profits from the work being done and creating great value for the client, rather than just bringing in more work at any cost.

Remember, as an accountant, the services you provide are valuable, and you have worked hard and have taken on a lot of risk to be able to supply them —how you price should reflect this above all else. For more on pricing and other ways in which you can transform your firm so as not to repeat last tax season, let’s talk; you can schedule a no-obligation call here: https://www.renewgroup.com/inner-pages/contact

Posts you may like