We just finished Regroup, our annual face-to-face conference for Renew firms. The message was clear. The #1 reason firms burn out their teams and struggle to grow strategically? Weak pricing.
Partners from small firms to multi-partner firms said the same thing. Pricing is where they continue to see upside. And from what we see in the industry, the cost isn’t just money left on the table; it’s the toll on team members who continue to get burnt out every tax season. In our upcoming 2025 Bite Size Benchmark Assessment, we will demonstrate how firms that get pricing right work fewer hours…not because they’re more efficient, but because they are serving target clients with the right services at target prices.
Here’s the irony: online firms with nowhere near your depth of expertise are charging more than most CPAs / EAs. Just look:
These firms are shaping pricing expectations, and they’re doing it with confidence. Meanwhile, too many experienced accountants are pricing apologists and are collectively leaving millions on the table through weak pricing.
This year’s Benchmark Assessment will show that Renew firms raised prices an average of 14.38% with only 5.13% of clients leaving. The mass client exodus partners fear just doesn’t happen. And the ones who do leave? You know who they are…
Setting minimum prices is essential, but to be clear, minimums are not a business model. Minimums keep you out of the Insanity Zone. Targets build a sustainable business model.
At Renew we recommend minimums of:
Your target should be higher: at least $1,000 per month for a business client, packaging tax, accounting, and advisory into a year-round subscription. That’s how you get leverage. Fewer clients, higher value, more profit, less hours.
There’s still time to run a Pareto on your firm, where we’ll show you exactly which clients to reprice, and how, before next tax season. Every year, firms who join Renew around this time of the year are amazed how much they can accomplish by the end of the year.
One reason firms hesitate is because they don’t know where to start. That’s exactly why we’ve built practical pricing resources for Renew members, including pricing calculators, minimum price scripts, and sample letters to roll out your new pricing with confidence. You don’t need to reinvent the wheel.
In summary:
You may not realize it as the fall deadlines approach, but the window before tax season is closing. Stop apologizing for your prices. Start commanding them. Let us show you how. Schedule a call today.
