Price is not a number. Price is an emotion.
Let me explain.
Let’s say you go to dinner with your family and the price is $75. You expected the price to be lower (when you left the house) and the bill makes you grumpy. The price is grumpy, not $75.
Conversely let’s say you need your heater repaired at your house. You are cold at home and your family is miserable. You call an HVAC guy, he comes out and fixes the heater for $150. You think wow I would have paid $500 to fix the heater. It was a bargain and you/family are happy. The price was happy, not $150.
The same applies to accounting firm services.
Let’s say your ReNew Target Client agreement is 1k per month. You think… that’s pricey. You are fearful of sharing the price. The price to you is fear.
Let’s say you have a client who is cheap and you price a project at 3k that was worth at least $5k eg value. The price to you diminishes your worth and self esteem. The price to you was lower self esteem not 3k.
Conversely let’s say you do a project for a client and you charge 10k… it’s a double fist pump price… the price to you is good feelings.
When you unpack pricing and emotions and how you, the emotions and the numbers drive your pricing, value will improve. You will stop over serving clients. You will have true advisory relationships.
Just because the prospect doesn’t move forward doesn’t mean the price was too high.
It’s relatively easy to do well in business during boom times. But accountants can do exceptionally well during tough times. The right clients need you more than ever right now.
It’s an employee’s market. Old thinking will NOT help your recruiting efforts. Tell prospective new hires how you focus on target clients, dictate the terms of the client relationship, price upfront, work with ReNew and collaborate with firms on the leading edge of the profession.