Benefits of Value-Based Pricing for Your Clients
Most of Kim's clients are seasonal business, so having fixed, predictable accounting costs is a tremendous benefit to them. She has transitioned most of her clients to value-based pricing, which is a type of fixed pricing. If someone was skeptical, she would encourage them to try it for short amount of time. When a client does that, no one goes back!
We have on-boarded clients that spoke about making a phone call to their CPA who would turn on the time clock and then ask them about how their family was doing.
I am Kim Hornsby, founder and CEO of Singetrack Bookkeeping.
We provide automated cloud accounting for small businesses in resort towns and in the travel and adventure industry.
So when you're dealing with seasonal businesses as we are working with Wheels Bike Shop, the fixed pricing model seems to work very well for these folks.
And there is a slight difference, fixed pricing is, I say this is worth $200 a month, value pricing is customer what do you need, what do you want, what would you like us to provide you, and what do you think the value of that service is?
Their only concern was, will I pay more?
So we said, hey, let's do this, let's try it for a year, and if you don't feel like you're comfortable with it, then let's talk about it.
No one ever reported that they were uncomfortable with it. In fact, everybody was very happy with it because they knew exactly what to expect.
Each month they're going to get the same service and they have access to us at any time.
With the hourly billing model, I don't want to contact that accountant.
With our pricing model, it's a relationship price.
So I definitely think it promotes that partnership that we have with Wheels Bike Shop.