You Can't Right Price The Wrong Clients

value pricing Nov 12, 2019

You can’t right price the wrong clients.

Let me explain what that means…

A huge problem in our profession is accountants and bookkeepers working crazy long hours and not making enough money.

One of the main reasons this is happening is accounting professionals have the wrong mindset. We want to win every single client out there. We want to grow our firms and keep taking on clients.

But not every client is a good client.

Watch the video I did on this here.

There will always be some clients out there that no matter how much you build value, communicate value, give them choices, options, use menu pricing - all of the best value pricing techniques - they will still not value what you do.

You will never get the right price with those people because they have unrealistic expectations. They are probably just looking for the cheapest provider and that’s not what you are.

They may be the sort of person that has cashflow issues, or they may be a brand-new business start-up...

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Mastering Menu Pricing

value pricing Nov 05, 2019

As you make your journey to value pricing, one of the very best places to start is menu pricing.

We know that different customers value different things, they all want to pay different prices - so let them. Give them three choices - Bronze, Silver and Gold.

Menu Pricing works. That’s why you see successful businesses like Apple, Starbucks and Intuit using it.

I have so many stories of people increasing their prices by 20% or more. Some people say that menu pricing doesn’t work - those people clearly aren’t doing it right.

I’m going to share a 7-step framework that will help you to build really effective packages.

You can watch the video here.

#1 - Number

You need to decide how many bundles you are going to offer.

I recommend three. This is because of the psychology of the magic of three. It’s proven to be the best number with some exceptions. Unless you can prove another number works better, start with three.

#2 - Customer segmentation

This step is the...

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Content Creation Masterclass: How To Write 52 Blogs Fast

value pricing Oct 29, 2019

If you want to grow your firm, and if you want to narrow down your niche by specialising, then one of the best ways to attract new clients is content marketing.

You need to be creating content and putting it out there for clients to see to build up your positioning, build a reputation as the expert and win new customers.

I put out one YouTube video and one blog post every single week.

In fact you can check out the video here.

You may be wondering how I do that. Perhaps you feel you are too busy to write a blog post every week. The truth is - so am I.

I haven’t got the time to film a video every week. I batch it.

I will typically, once or twice a year, do everything in one go. I will make 12 months worth of content in a couple of days.

I start by spending a day of preparation. I brainstorm and come up with 26 topics. I think of all the things I can teach, in my case I consider what it is that accountants and bookkeepers can teach to their ideal markets.

I come up with 26...

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Why you must involve the client in the pricing process

value pricing Oct 22, 2019

If you want to get the best prices, you must involve your client in the pricing process.

Every client is different. We all value things differently. You need to price the customer, not the service.

You can watch the video here.

There is a big mistake that I see people making in the profession, it’s a mistake that I myself made when I first started my own accounting practice in the 90s.

I didn’t understand value pricing. I would meet with clients every single week, and I would talk about all the amazing things we could do for them. At the end of the meeting they would ask me the price question and I would say:

That’s a great question. Let me go away and think about it. I will write you a proposal.’

Please don’t EVER do this.

Think about the last time you received a proposal or quote. Perhaps you were having your house decorated, or your garden landscaped. When you get a quote or proposal sent to you what is the first thing you look for?

The...

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How to quantify the value of the work you do

value pricing Oct 15, 2019

We need to become better at communicating value because your clients don’t understand what you do.

Your clients are not accountants or bookkeepers. They aren’t trained - they have no idea what an accounting professional does. It’s your job to help them understand what you do, why you do it, and how it can benefit the client.

One of the techniques we can use is quantification.

But how do you quantify a benefit? How do you quantify value?

You can watch the video here.

Sometimes it’s easy, sometime it’s really difficult. Sometimes it’s objective, sometimes it’s subjective.

If we are talking about tax planning services, it’s a little bit easier because we can quantify the amount of tax you may save the client. When we quantify and measure the amount of tax at stake and how much we can save, that helps us to communicate the value.

It helps to calculate a value-based price.

The thing is, you don’t have to be 100% accurate with this. A...

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How to pre-qualify clients and avoid time wasters

value pricing Oct 08, 2019

You know those bad clients that waste your time when you meet with them? Everyone has them.

Not all clients are good clients. Some are great, and some are terrible. Your time is precious, you shouldn’t be wasting it on bad clients. I have three tips for avoiding those time wasters by pre-qualifying them.

You can watch the video here.

#1 - Position yourself

It’s really important that you position yourself correctly so that you only attract appropriate clients who are going to be genuinely interested in your services.

Consider how you position yourself on your website.

What type of firm are you? What type of clients do you want? Put that on your website.

#2 - Customer Intake Form

If somebody wants to meet with you because they are looking to change their accounting professional, then a great tool that some very switched on firms use is to ask people to fill in a questionnaire first.

This could be on your website, or through something like SurveyMonkey.

The client has to...

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How to know when your prices are correct

value pricing Oct 01, 2019

How do you know when you’ve got the price just right?

The answer is simple - you can’t.

You will never know when your prices are right. Everyone values your work differently; they are all willing to pay different prices.

Every buyer has a maximum willingness to spend. You can’t simply ask them what that number is because they are never going to tell you. But there are ways of knowing you have got very close to their maximum.

You can watch the video here.

The first thing you need to realise is, if you reveal a price to your client and they say yes straight away, you have gone in too cheap.

They probably have a number in their head that’s their maximum willingness. If you give a price that’s below that number they will take you up on it straight away and you won’t get a chance to change the price - but they would have paid more. You’ve left money on the table.

You need to start with a high price. If the client says ‘that’s too...

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How to develop a niche and win better clients

value pricing Sep 24, 2019

Building a niche is really important. I’ll give you five reasons why…

You can watch the video here.

#1

Specialists always make more money than generalists. We see this in every industry. The brain surgeon earns more money than the general practitioner.

#2

A niche allows you to specialise in a particular industry or type of work. You can get deeper into it and learn so much more. The deeper you go, the more knowledge and experience you get, the more value you will be able to give to your clients.

#3

It saves you a ton of time. For example, if you decide to do any type of tax planning, tax compliance for clients, then as part of your CPD training, you need to go on many tax courses. You need to learn about inheritance tax, estate planning, corporation taxes, personal taxes. There are so many things to learn and we are so busy trying to keep up to date with our CPD. But if you specialise in one, you only have to learn about that one area.

#4

As you specialise and learn...

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How to get your clients to value what you do for them

value pricing Sep 17, 2019

If clients don’t see the value in what you do for them, they are going to constantly think that your prices are too high.

You know that the work you are doing deserves a premium price. But the client doesn’t know that. They probably don’t know anything about your job.

You need to communicate the value of the work you do to them.

You can watch the video here.

Here are 3 things you should be doing:

#1 - What is the client’s pain?

What pain is the client currently facing. What challenges or problems are preventing them from running their business efficiently or getting a high profit?

What problems might they face in the future if they don’t take action?

Research has shown that human beings are more motivated by the avoidance of pain than we are by the attainment of gain.

The better you are at explaining the current and potential pain to the client, the more likely they are to find value in the solution that you present to them. If they fully understand...

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Avoid the big discounting mistakes

value pricing Sep 10, 2019

Our profession is way too cheap.

We discount our prices and we crash and burn on prices. You should never discount. You should maintain the integrity of your price. Be confident about your prices, and the value that you deliver to your clients.

Discounting can be fatal.

Here’s a story explaining why…

You can watch the video here.

For 77 consecutive years, the leading business in the car industry was General Motors. 

Then, in June 2005, sales were starting to slump a little but.

They had this genius idea to do a new discounting structure. They decided to give discounts to people who bought cars in June 2005 at the same level of discounts they gave their staff.

Their sales went up by 40% in comparison to the previous year. July sales went up and they started to congratulate themselves.

Unfortunately, August sales slumped, then September sales slumped. Three years later General Motors filed for bankruptcy.

Discounting is crazy. It may bring you in more sales, but it...

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