Because no two clients find the exact same special revenue fund procedures value in accounting services, many firms offer a menu or package pricing. This allows clients to choose the level of service they want, identifying what value they see in the offering. Pricing psychology reveals that clients certainly want choice because they all have individual wants and needs.

The success of your accounting firm depends so much on implementing a pricing strategy that boosts profitability while sustaining longevity without damaging your brand. Instead of sticking with a safe but short-range pricing strategy, develop purposeful prices that will lead to more success. Once you know this, you can modify your service packages to address their specific needs and challenges. Ditch the one-size-fits-all approach and create tiered packages, like Silver, Gold, and Diamond, that offer varying service levels and value. Remember, pricing isn’t just about covering costs; it’s about recognizing the value of the service provided.

1. You’re also learning their business and don’t know exactly what tasks you will be doing.
2. If you can do the job more efficiently or insightfully, you’re likely adding more value for your client than your hourly wage goal.
3. My goal is to help you understand what these breakdowns look like for each client.
4. They’re investing in the peace of mind, improved financial clarity, and strategic insights your services bring to their business.
5. This is important because you don’t know how much somebody is willing to pay because we value things differently.”

Hourly Versus Project-Based Pricing

To make things more complicated, a freelancer, small business, bookkeeping firm, or an accounting firm will offer different average rates for bookkeeping services. It’s important to consider market rates when pricing your bookkeeping services. If you live in an area with many bookkeepers, you may need to charge a lower price to compete. When it comes to setting prices, you can’t rely on just one variable. Look at numerous different angles, from your competition’s prices to the value of your unique services to your overhead expenses, to discover your firm’s worth.

These are written by experts in value pricing, and can help you it all out. You can discuss your prices in advance based on the work you’ve been asked to do. Or, you can determine your prices after the work is done. I also collect payments through their payment processing system.

Step 1: Learn about your clients

Check out this podcast episode for a few other things to keep in-mind when it comes to discovery calls. If you skip this step, scope creep will likely become an issue. Find out more about fixed and value pricing in this blog post. To give you an example of how pricing can make all the difference, check out this message from one of my Future Firm Accelerate members.

Offering custom services means tailoring your services to each client’s needs. This is a good option if you want to offer a wider range of services. For custom pricing, you’ll need a general idea of how much you charge for each service and then consider if the total cost for all the services for the client is reasonable. With customized pricing, you can either charge a flat monthly fee or hourly. Value is what sets an accounting firm apart from the competition what are the effects of overstating inventory and that perceived value influences how much clients are willing to pay.

The Relationship Between Value and Pricing

When done correctly, this will effectively turn your pricing into a feature that clients regard as an advantage rather than simply a cost. Do you work with wealthy clients or large businesses who expect an exceptional experience? Clients who expect a premium experience will look for products with a premium price tag.

And, use it as a competitive advantage when it comes to pricing your offerings. Chances are, clients are going to be more willing to pay an accounting firm more money over another if they have more experience. A big tip, if you’re going to any type of non-hourly billing, is to work out a price list for your services.

This approach is useful for bookkeeping businesses wanting to focus on creating valuable products or services for their customers. You should also consider your experience level and expertise. If you’re a small firm owner just starting, subtotal definition and usage examples you may want to consider charging less than someone who has been in the business longer.