EFFECTIVE PRICING CHECKLIST

Transcription

1 EFFECTIVE PRICING CHECKLIST CREATED BY MARK WICKERSHAM (THINGS TO REMEMBER WHEN PRICING YOUR ACCOUNTANCY SERVICES)

2 This resource is an extract from my Effective Pricing for Accountants programme. You should use this checklist as a structured process for optimizing the way you price every service so you maximise profits and add value to your clients. And as a special bonus for reading this resource I would like to invite you to one of my upcoming Proactivity seminars at a massive discount off the usual 200 ticket price. This highly acclaimed one-day seminar will reveal how you can improve your pricing, service levels, profits and cashflow easily and quickly by becoming more proactive. These events are hosted by both myself and Steve Pipe FCA. About the author Mark Wickersham chartered accountant, public speaker and #1 best-selling author is passionate about the accounting profession and helping accountants to become much more profitable. As Chief Executive of AVN he leads the team that developed over a thousand tools and systems as part of the System Builder software suite for accountants, including many to help practitioners grow their fees, profits and capital value. In May 2011 his book, Effective Pricing for Accountants, was a number 1 Amazon bestseller. He has also co-authored Your Blueprint for a Better Tax Practice and Your Blueprint for a Better Accountancy Practice, both of which have been widely acclaimed.

3 Part 1: Menu pricing strategy Menu pricing is one of the most powerful pricing strategies for pricing accounting services. So this should always be the first consideration. Here are just some of the considerations Is a menu of options appropriate? If not skip to part 2 Decide how many options you will offer Decide how you will describe each option Decide on the content of each option (see part 2) Describe the benefits of each option (see part 3) Determine the price of each bundle (see part 5) Part 2: The content of your service You need to think how you can add more value and differentiate what you do from other accountants Brainstorm the content, i.e. the scope of the service Add value with more benefits (see part 8) Will you offer unlimited access/support? Part 3: Communicating your benefits This is where communication skills and an understanding of behavioural economics comes in. You need to use techniques for communicating the benefits so your clients fully understand how you help them What are the benefits? (for example: more profit, less tax, reduced costs, more cash, less stress, less risk, increased wealth. State your No surprises fixed fee policy, e.g. So in the spirit of our No Surprises fixed fee policy I thought I would drop you a line now to tell you exactly what your investment in our services will be. 3

4 Linking phrases: Use linking phrases to turn every feature into a benefit Describe the benefit of your additional added value items Set out your unique selling points Use bold, italics and underlining to highlight key benefits to the reader. And use sub headings that make the reader want to read on Part 4: Payment terms Remember to make your payment terms very clear and set expectations right up front. 16 When should payment be made? In advance On completion Spread over the period of the benefit Deferred until the benefit is realised 17 What options will you give for making the payment? Cash Cheque Credit card Finance Standing order Direct debit Part 5: Setting the price Once you have created your service and explained the benefits you need to decide on a method of pricing which best reflects the value. 18 What method of pricing will you use? Contingent pricing Percentage pricing Retrospective pricing Retainer Unit pricing Fixed pricing Time-based (not recommended!) 4

5 Part 6: Describe the price There are many techniques for making your price seem small and to keep the clients focus on the value. Here are just some of the many techniques you can use State the price early if a written proposal Consider the price benefit sandwich Describe the price as small Describe the price as an investment Part 7: Power strategies There are many power strategies for example, the use of effective guarantees which can make it much easier for clients to buy from you and at much higher prices. Many of these are advanced pricing strategies and beyond the scope of this resource. Nevertheless here are some things you certainly should consider: Get the clients agreement: Consider getting the clients signature when agreeing the terms of the engagement Can you change the price to reflect the choice to include optional extras? How will you promote this service? How are you going to test? What measurement systems will you put in place to measure success? Diarise your annual price review Part 8: 13 ideas for adding massive value Your focus should always be on adding as much value as possible to your clients. Accounting firms that offer more value to their clients are the ones who consistently make the most profit, and get the best client feedback because they are changing peoples lives. Here is just a small sample of ideas. When you join me at an AVN Proactivity day we will 5

6 show you dozens of ways to add massive value and differentiate your accounting firm from all the other ordinary firms Graphs and charts Benchmarking report Ratio analysis Breakeven analysis Six key growth drivers review Pricing analysis Tax planning review Remuneration planning Diagnostic review report Report on their financial systems Personal balance sheet Unlimited access to your team this means that you can call on us at any time knowing that you will never be charged for our time or advice Making doing business with you fun Remember, this resource is an extract from my Effective Pricing for Accountants programme. The full master pricing checklist contains 87 steps and powerful strategies plus 50 supplementary ideas for adding value: 6

7 EFFECTIVE PRICING CHECKLIST CREATED BY MARK WICKERSHAM the avn team let s get social Copyright 2014 Mark Wickersham