Accountants struggle with pricing!
It’s not their fault… pricing is hard.
When I am helping members of the Value Pricing Academy there 3 things that keep coming up over and over again. 3 things we need to fix.
Let me share with you those 3 big mistakes in this blog post. However, if you want the full analysis, check out this video on my YouTube channel.
Read on for the summary points or click here to watch the full video.
You are still pricing too low!
2020 was a big shock to the economy with the emergence of COVID-19, lockdowns and travel restrictions. Many of your clients have struggled. Many business owners have had to shut their doors.
And things are still tough in 2021. Arguably tougher, as businesses have to pay back the loans and tax deferrals.
When clients are struggling there is a natural tendency to want to help by keeping prices low. The trouble is that’s not really...
Scope is creep is probably one of your biggest costs, but it can be totally invisible!
You need to be able to spot scope creep when it is happening so that you can address it and adjust your price accordingly. You should never have to make a loss on a job.
Here are 7 common examples of scope creep to look out for…
When the client gives you corrupt data, or they haven’t given you the data in the format you wanted, that is a scope issue.
At the outset of the project, you should build into your proposal or fixed price agreement very clear instructions on how you need to receive the data, and also what will happen if those conditions are not met.
This used to happen to me all the time! Clients would drop off their books and records – and in those days, back before cloud technology, it was all held together in a paper bag!
When projects end up taking longer than you expect, you end up making losses on the job.
How do you solve that?
I’m going to share with you a 7-step framework to stop you suffering from scope creep ever again.
Have you ever got to the end of a project, produced a work in progress report and realised you spent way more time on a project than you initially thought you would, but have no idea why?
You end up having to write time off to make sure the client will pay your bill – you end up making a loss.
You need to become more aware of scope creep and be able to spot when it is happening. If you know what to look for, you can identify scope creep and deal with it before it becomes an issue and costs you money.
You should deal with scope right at the outset of the project. You should discuss it in the pricing conversation.
I believe that the accounting profession is an incredible profession.
Accountants make a profound difference to the lives of clients, and, as a result, we should be very well rewarded.
Unfortunately, that's rarely the case. Most accountants are working way too hard for way too little money.
That’s how it was for me when I first started my own accounting firm back in 1996. It was seriously hard. In the space of two years I had grown it to about 200 clients. It was growing fast, but I wasn’t making any money.
I was working longer and longer hours, it was crazy! But I think that's the state of most accountants and bookkeepers around the world; we work too hard for too little.
It all changed when I implemented value pricing…
When I started to put in place value pricing systems in 2000, my results changed so significantly that a few short years later I was able to sell my accounting firm.
Since then I’ve been teaching accountants around the world...