Head trash is when we have negative self-talk or limiting beliefs that hold us back from achieving our goals. When it comes to pricing, many firms have head trash around the idea that they priced the project too high.
However, just because a prospect doesn’t move forward doesn’t necessarily mean the price was too high. There are other factors at play in the decision-making process.
In order for a prospect to accept a price, the value must exceed the price.
This means that the value of the outcomes must be greater than the cost of the project. If the client doesn’t perceive the value to be greater than the price, they won’t move forward. It’s important to differentiate your firm from others and clearly demonstrate the value you bring to the table.
One way to do this is by following a proprietary sales process like the ReNew Sales Ladder. This process involves properly diagnosing and prescribing the prospect, getting them to agree to the objectives of the project, and asking about their alternatives and concerns. By doing this, you can better understand the client’s needs and position your firm as the best option.
Another common example of head trash around pricing is when a prospect questions or complains about the price. This does not necessarily mean the price is too high. Instead, it’s important to separate the process from the results. Did you follow the process and did you win the work at a price where everyone wins? If so, then the price was likely appropriate.
To avoid pricing head trash, it’s important to review your process and focus on demonstrating value to the client. Don’t internalize comments about price and instead focus on understanding the client’s needs and concerns.
By doing this, you can set your firm up for success and avoid limiting beliefs that hold you back!
If you're interested in more insights like these, consider signing up for our Renewsletter: https://www.renewgroup.com/newsletter. Alternatively, if you'd like to discuss your CPA firm's specific needs, feel free to schedule a call with us: https://www.renewgroup.com/contact.
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 eliminate head trash to improve pricing.
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!
