Trusted Accounting Advisors Should Embrace Value Pricing
It’s no secret that clients trust their CPAs – 52 percent of decision makers rank CPAs as their most trusted advisor, the highest among all financial professionals, according to AICPA.
However, if you aren’t putting that reliability and good faith to use, you are going to fall short of the potential value you can achieve for both your firm and its clients.
That value lies squarely in value pricing, a revolutionary billing option where you charge a flat, monthly fee for your services. And, according to Marnie Stretch, “value pricing is about the CUSTOMER, not the SERVICE.”
Not one client likes being charged each time for a harmless phone call or question by email. It’s time to move away from this type of billing and the idea of competing with other firms based solely on hourly fees.
The advice and perspective you provide is worth more than that, and will help grow the relationship and personalization you have with your clients. After all, it’s these advisory services that enable you to generate more money for your firm, while pleasing your clients at the same time.
But, to accomplish this, each member of the firm must buy into certain ideals and goals. Industry leader Ron Baker, in his recent article “Who is in Charge of Value,” says that each firm should “establish a core group of enthusiastic pricers to establish pricing as a core competency.” Baker goes on to say that each firm needs to determine a chief value officer, someone whose sole responsibility is to be in charge of value, where they must focus on the customer first.
As you can see, value pricing takes on more than just price. And, it’s something that you should be very open about. Clients will respect you discussing price upfront, and may even adapt if you demonstrate your value.
We know that your billing is entirely a firm-by-firm decision, but you would be doing you and your clients a disservice by going with the old, and dare I say, soon-to-be outdated model. For a great example of a three-tiered pricing model you can implement right away, take a look at QuickBooks ProAdvisor Laura Redmond’s website model. Get on board today, and become a Firm of the Future and more trusted advisor!