And here’s where your dollar sign does the dance again – because in fact there can be a very healthy value to you if you price high. Very high. Think about lawyers – do you want the one who costs the price of a house just for showing up to defend you, or do you want the poor public defender who has worn out the elbows on his shirt? While that public defender may actually be the superior lawyer, the woman with the thousand dollar watch automatically reeks of resources and competence.
With BOSS, bringing on the outsourced accountant needn’t be a frightening thought, we have trained accountants that can follow your in-house procedures on all of your jobs!
There can be a lot of value gained by pricing yourself as the Rolls Royce of the accounting world. Which pricing strategy would work best for you at this time?
3. Measure Your Value
Value Metrics. Metric – a means of measuring. Value – what you have to offer.
Your value metric defines not only what services you provide for a given fee but how you are charging.
Don’t pay any kickstart fees with the outsourced accountant provided by BOSS. Other firms can charge an arm and a leg!
E.g. A software company may sell different numbers of licenses at different prices. The price goes down as the volume of licenses goes up (the value becomes greater). They may also add-on specials such as 10 free support calls or unlimited support calls as part of a top tier package. (The value then is even greater).
With an accounting firm you could have a metric which is the frequency of management accounting reports you provide a business per year (e.g. monthly, quarterly, six monthly or annually). The increased value goes up in higher and higher tiers. Additional value based offerings could be bill payments, invoicing, budgeting, cash flow and strategic planning.
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The most important facet of all of this is to remember to be clear as to what the increases in price revolve around. What service(s) do your clients value the most? Build your various price levels around the value(s) your clients want from you at the most basic level.
Once you have a pricing strategy in place with various increasing value propositions in exchange for rising prices, make sure your clients understand your pricing strategy without needing to have someone from your firm explain it to them. The last thing you want is for the waters to be muddy when it comes to what you’re charging for which services. Confusion or difficulties in purchasing your services will lead to a client’s lack of confidence, and that means missed conversions.
The outsourced accountant with BOSS can provide you with quick turnaround on your work
When done right, your firm will still be able to grow even when your acquisition of new clients occasionally fizzles a bit, because since your value metric revolves around services your clients will always need no matter how big they get, as they grow they’ll look to you as their trusted advisor for other valuable services.
4. Bundles, Tiers, and Packages
So we’ve already talked about tiers.
Let’s expand on that by including bundles and packages. What we’re looking at here is placing two or more services together, and then offering them at a price that’s lower than the sum of those individual services. While you’re now receiving less for one (or more) of the services, you’re still receiving income that you wouldn’t have otherwise received at all because the client had no initial interest in the extra service(s). You may even sell a service that isn’t even truly necessary.
The outsourced accountant staff at BOSS only need one month’s cancellation notice. A big difference between BOSS and other outsourcing firms.
Continued in Part ¾ – Four Tips to Hitting Your Perfect Price Point