The Value Mindset that Grows Money
You’re really not selling time. So why position yourself as a commodity? When you stop charging by the hour, your clients no longer consider your services as an expense. Instead, they view your accounting services as an investment.
You probably don’t realize that charging by the hour undervalues your expertise. As your accounting practice grows and your expertise improves, your value increases. Why downplay your experience?
At the same time, your work is more efficient than when you first started your practice. As a result, you end up earning less money although your level of service has improved. This means you actually get penalized for advanced knowledge.
Re-envision Your Service
The solution to fixing the hourly rate trap is to charge for the result. Instead of charging for time, charge for the specific outcome or benefit you deliver. This pricing strategy recognizes your years of experience.
Your best clients hire you because you’re great at managing their financials. If you want to attract high value clients, then emphasize your experience instead of competing on price. Your clients really don’t want to be watching the clock when they hire your firm.Your clients really don’t want to be watching the clock when they work with you. #smallbusinessgrowth Click To Tweet
This may seem counter-intuitive, however, speed has value. Your ability to quickly resolve a problem has greater value than dragging one out. People willingly pay premium prices for express services and overnight shipping.
Stop Charging by the Hour
Lee Sturgiss at Polar Creative explains the thinking.
At Polar Creative we use a flat fee system, pricing all our projects up-front and providing our clients with a full, detailed and above all clear proposal before any work begins. Our prices are based on value, taking into account the amount of time we anticipate the project to take, the full scope of the work, how difficult it will be to achieve, any deadlines and, ultimately, which of our skills will be required and what that is worth to the client. We believe we offer a fair and competitive price when you consider the expertise we have acquired and the portfolio of work we have behind us. We would never consider an hourly rate as it undervalues our service and thus doesn’t provide the client with the quality they deserve.
How to Reframe Your Service
Your real value lies in the ability to fix your client’s problem. Package, or bundle, your services. This emphasizes results rather than time. It’s one way to stop charging by the hour.
Shift your mindset away from hourly billing. Consider pricing which highlights a specific outcome for your client. Whether you are a tax professional or a bookkeeper, your clients come to you for solutions and answers. They need tax savings and accurate financials. Your accounting firm offers the solution.
Start to develop your package.
- Define. List all the benefits your ideal client receives when they hire your firm.
- Results. Specify everything they achieve as a result of your accounting services.
- Fine tune. Set aside time to fill in the details. Identify all the aspects of your process.
- Steps. Create order out of chaos. Figure out the steps and the sequence.
- Articulate. Get comfortable explaining the necessary steps to achieve a specific result.
Congratulations. You now created your first package.
ADVANCED TIP: Because you excel at accounting, you may need to backtrack as you outline the detailed steps. Detailed step-by-step increments give your clients an overview of how you achieve a solution.
Because you take your skills for granted, it’s easy to overlook all the necessary steps.
Consider things from your clients perspective. Think of your client’s journey. Then consider what they need to know to close the gap and fix their problem.
If you offer a variety of services or have add-ons be sure to price these in the same way. Focus on the outcome for your client.
Calculate Your Package Fee
Your profitability rises when you stop charging by the hour. Value pricing is not connected to the cost of delivering your service. Instead, your fees are directly connected to the benefits your client receives.Your #profitability rises when you stop charging by the hour. Value pricing is connected to the benefit that your client receives. #smallbusinesssuccess Click To Tweet
Most accounting professionals undervalue the experience and skills they bring to the table. As you prepare your package, remember not to base your fees on time.
Focus on your expertise. Consider how your clients benefit from your services. You want to price your packages so both sides, you and your client, are satisfied with the investment and benefit from the arrangement. Don’t just consider your profit. Think about how they profit from investing in your service.
Benefits of Package Service Fees
Value pricing is the quickest way for your business income to increase without additional time spent working.
Differentiate yourself from other accounting firms. As a result, you’ll attract high value clients. Consider this: your ideal client is hungry for the outcome you provide.
Packages let you define the necessary steps which lead to a specific result. This is a win-win for you and your clients.
The quality of your relationship with your client improves when they no longer watch the clock or worry about expense. Value pricing fosters a team approach. The focus shifts to the result and how things improve. You’ll quickly realize the true value of your service is higher than an hourly rate.
Packages highlight your expertise. Your role transforms into an advisory position. You work with clients who value and respect you.The quality of your relationship with your client improves when they no longer watch the clock or worry about expense. Read full post. #getpaidwhatyoureworth Click To Tweet
When You Shift Your Mindset, So Do Your Clients
Value based pricing gives you the foundation to build a profitable accounting practice without being a slave to your business.
Are you ready to stop charging by the hour? Follow these recommendations for your accounting practice to be successful, and grow while keeping your passion alive. Right NOW claim your FREE RESOURCE to earn more while lightening your workload.