A person and person are looking at a laptop.

Value-Based Pricing Questions to Ask Your Clients: eBook

Value-based pricing comes with a lot of benefits for your CAS practice. It can help you grow your firm and improve client communication, but beyond that, it’s simply more profitable.

The pitfalls of hourly billing

Hourly billing may seem black and white, but as any accountant knows, the age-old pricing structure comes with its own list of challenges—for accountants and for clients.

One big challenge is lack of communication. Clients who pay hourly for your expertise may hesitate to reach out because they don’t want to pay for extra time. They may also be worried about billing surprises, unsure if the fix they need will require a lot of time or just a little. Either way, less communication means a weaker relationship. Fortunately, there’s another way.

Thank You

Download Link: Value-Based Pricing Questions to Ask Your Clients eBook/a>

Why you want a ‘Good, Better, Best’ tiered pricing model

The Harvard Business Review states that the “Good, Better, Best” pricing model has two main advantages.

First, it gives your clients the freedom to choose what they’re willing to pay, and that’s an empowering feeling. Second, having multiple options has been shown to encourage quicker decision-making. Once they’ve decided to move forward, most people are open to upgrading beyond the first option they’re given since they view it as a sunk cost (i.e., the “Good” pricing package).

Offering tiered pricing using the “Good, Better, Best” structure allows you to build out plans that fit clients of all sizes and budgets.

Your advisory services are worth more

It shouldn’t surprise you that most clients are willing to pay extra for data-driven guidance and higher-level conversations. This is the stuff that can help them save thousands and make millions.

Consider this: Five minutes is five minutes when it comes to billable time, but if the conversation you have saves a client $25,000, isn’t that time worth just a little bit more to both of you?

Clients who understand the value of what you’re offering won’t balk at your new pricing model—particularly when they begin to experience its benefits. Here are some of the advisory components you’ll want to include in your “Good” and “Better” packages:

Discovery: Get a deeper understanding of your client’s business
Insights: Identify what’s working and what isn’t
Tools: Make the most of automation and technology, including QuickBooks
Strategy: Prioritize and make a plan for moving forward
Goals and KPIs: Make a system to measure progress
Schedule for success: Create a timeline

There are plenty of reasons to switch to a “Good, Better, Best” tiered pricing model, particularly when you consider how valuable your advice is to your clients. As your profitability increases, don’t forget to check in with your accounts regularly. Have you experienced any scope creep? If so, it’s time to restate your boundaries and perhaps upgrade those who’ve come to depend on your wisdom.

Download our Value-Based Pricing Questions to Ask Your Clients: eBook for more step-by-step guidance on building out your pricing packages. Increase your own growth, as well as your clients’ for a win-win way of doing business.