Mindset is everything when it comes to success.
You can either play to win or play to not lose. But playing to not lose is a surefire way to lose in the long run.
Why is that? Well, you'll end up underpricing, taking on the wrong clients just for the revenue, not standing up for yourself, and ultimately playing at a lower level. And that's not a better way to do business.
Let's take a look at some recent examples from the past week.
A partner of a $1 million firm that serves wealthy clients tells me that they're getting lots of opportunities from larger firms. But these larger firms are "moving up" and as a result, they're not providing great service to their smaller clients. But the clients love the smaller firm because they get partner access, better service, and value, all while being charged about 30% less. So I asked, "They get partner access, better service, and value, all while being charged less? Why are you charging less?" The partner was silent.
If you're getting more value, you should expect to pay the same or more!
Another clear example is ERC outsourcing consultants charging 20 to 30%, while CPA firms are only charging 10%. CPAs have more trust, will likely produce the same or better outcome, and make it simpler for businesses since they won't have to establish a new relationship. Yet, CPAs are charging less? Again, if you're making things easier and simpler for your clients and also providing more value, why would you charge less? That's being a pricing apologist and playing to not lose. And that's not a better way.
Finally, just because a prospect or client complains or asks about the price, it doesn't mean the price is too high or that they won't pay it. It means they're making a statement or asking a question. Your job is to put them back into the ReNew Sales Ladder. Ask questions, use the setting aside strategy, explore what their options are.
The world is full of unconditional abundance. So play accordingly and always play to win!
Taking Action:
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About the Author:
Shannon Vincent has dedicated his entire career to working with accountants in various capacities. He has consulted with Top 100 firms to Sole Practitioners, helping them create sustainable and profitable businesses. A member of the California Society of CPAs, he received a Bachelor’s Degree in Economics with an emphasis in accounting from University of California, Santa Barbara, and now resides in the San Francisco Bay Area. Shannon is passionate about helping accountants improve their mindset for success.
About Renew Group:
Are you tired of being on the diet but not seeing results? Most consultants to the CPA Profession do lots of talking and deal in 'fluff'. But there's no accountability and no focus on RESULTS.
At Renew, we start with your numbers. Our firms complete a Pareto for Profit analysis EVERY YEAR, set new targets to improve their profitability and then 'weigh in' regularly. We give you a roadmap to transform the profitability of your accounting firm by accessing our content, collaborating with other firms on a similar path and being held accountable by our coaching team and your peers.
Get paid what you're worth, create a better life based on a scalable business model and eliminate tax season insanity once and for all!