Follow Inna Korenzvit on Her Journey to Value Pricing
Meet Inna, who sees value pricing as the definite way to go for her modern, progressive firm, despite having had mixed success implementing fixed-fee pricing in the past.
We have had mixed success with the fixed fee. We have lost some new clients after negotiating with them.
This is Inna with Kore Bookkeeping Solutions, how are you?
Our company has been in business for almost 10 years. We're located in Scottsdale, Arizona. 80 percent of my work is conducted from my home office. We have two full-time employees including me.
Since I've joined we've been able to gain a lot of new clients, and things are going really well, and we're hoping to be a much bigger business by the end of the year.
Go ahead and log into your account so I can take a look at what the issue is.
I like to think of myself as being very progressive in using technology. I've been transferring everybody to online for the last four years. 80 percent of our clients are in the cloud. We have them on Quickbooks online. We work with a range of industries. They're all small businesses, primarily 5-10 employees, and about 3 million in revenue.
I started working with this client a little over a year ago. She has a natural billing service where she helps people recover faster after surgeries.
Hi Nancy, great to see you.
Great to see you, it's been a while.
I know, how have you been?
Doing great, really good.
When I first opened this business, my office manager and I were doing our bookkeeping, and it was very stressful, and I wasn't sleeping well at night. When Inna came into my life, she balanced everything out, she made everything so easy for me and my staff.
And this legation is doing well, I see?
We started working with Nancy before we implemented fixed pricing, so she is on hourly basis, but at this point it's almost always the same price because she needs the same work done every month.
Our goal however is to offer what we call value pricing and a package, a list of jobs and tasks that we will be doing for them. It is a struggle for us to convert our clients to value pricing, and it does take a lot of communication.
I heard you had some problems you were trying to resolve?
We worked really hard to adopt the value pricing model to mixed success. We certainly have a number of clients who are on the value pricing model and who do have fixed prices and packages that we've offered them, but we've also had a number of clients who've been reluctant to switch to value pricing. They were caught off guard by the sticker shop.
If we feel that uncomfortable with it we offer to charge them per hour with an option to renegotiate and go to value pricing after we start working with them. But it is an issue for us.