EFFECTIVE
PRICING
CHECKLIST
CREATED BY MARK WICKERSHAM
(THINGS TO REMEMBER
WHEN PRICING YOUR
ACCOUNTANCY SERVICES)
This resource is an extract from my
Effective Pricing for
Accountants
programme.
You should use this checklist as a structured process for
optimizing the way you price every service so you maximise
profits and add value to your clients.
And as a special bonus for reading this resource I would like
to invite you to
one of my upcoming Proactivity seminars
at a
massive discount off the usual £200 ticket price.
This highly acclaimed one-day seminar will reveal how you can
improve your pricing, service levels, profits and cashflow easily
and quickly by becoming more proactive. These events are
hosted by both myself and Steve Pipe FCA.
About the author
Mark Wickersham – chartered accountant, public speaker and
#1 best-selling author – is passionate
about the accounting profession and
helping accountants to become much more
profitable.
As Chief Executive of AVN he leads the
team that developed over a thousand tools
and systems as part of the System Builder
software suite for accountants, including
many to help practitioners grow their fees,
profits and capital value.
In May 2011 his book, ’Effective Pricing
for Accountants’, was a number 1 Amazon
bestseller. He has also co-authored ‘Your
Blueprint for a Better Tax Practice’ and ‘Your
Blueprint for a Better Accountancy Practice’,
both of which have been widely acclaimed.
Is a menu of options appropriate? If not skip to part 2
Brainstorm the content, i.e. the scope of the service Decide how you will describe each option
Will you offer unlimited access/support?
Describe the benefits of each option (see part 3) Decide how many options you will offer
Add value with more benefits (see part 8)
Decide on the content of each option (see part 2)
Determine the price of each bundle (see part 5)
Part 1: Menu pricing strategy
Menu pricing is one of the most powerful pricing strategies for pricing accounting
services. So this should always be the first consideration. Here are just some of
the considerations.
Part 2: The content of your service
You need to think how you can add more value and differentiate what you do
from other accountants.
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What are the benefits? (for example: more profit, less tax, reduced costs, more cash, less stress, less risk, increased wealth.
Part 3: Communicating your benefits
This is where communication skills and an understanding of behavioural
economics comes in. You need to use techniques for communicating the benefits
so your clients fully understand how you help them.
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State your ‘No surprises fixed fee policy’, e.g. “So in the spirit of our ‘No Surprises’ fixed fee policy I thought I would drop you a line now to tell you exactly what your investment in our services will be.”
Linking phrases: Use linking phrases to turn every feature into a benefit
Set out your unique selling points
Describe the benefit of your additional added value items 12
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Use bold, italics and underlining to highlight key benefits to the reader. And use sub headings that make the reader want to read on
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When should payment be made? • In advance
• On completion
• Spread over the period of the benefit • Deferred until the benefit is realised
What options will you give for making the payment? • Cash • Cheque • Credit card • Finance • Standing order • Direct debit
Part 4: Payment terms
Remember to make your payment terms very clear and set expectations right up
front.
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What method of pricing will you use? • Contingent pricing • Percentage pricing • Retrospective pricing • Retainer • Unit pricing • Fixed pricing
• Time-based (not recommended!) 18
Part 5: Setting the price
Once you have created your service and explained the benefits you need to
decide on a method of pricing which best reflects the value.
State the price early if a written proposal
Describe the price as ‘small’
Consider the ‘price benefit sandwich’
Describe the price as an ‘investment’
Part 6: Describe the price
There are many techniques for making your price seem small and to keep the
clients’ focus on the value. Here are just some of the many techniques you can
use.
Part 7: Power strategies
There are many power strategies – for example, the use of effective guarantees – which can make it much easier for clients to buy from you and at much higher prices. Many of these are advanced pricing strategies and beyond the scope of this resource. Nevertheless here are some things you certainly should consider:
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Get the clients agreement: Consider getting the clients signature when agreeing the terms of the engagement
How are you going to test? What measurement systems will you put in place to measure success?
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Can you change the price to reflect the choice to include optional extras?
Diarise your annual price review How will you promote this service? 24
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Part 8: 13 ideas for adding massive value
Your focus should always be on adding as much value as possible to your clients. Accounting firms that offer more value to their clients are the ones who consistently make the most profit, and get the best client feedback because they are changing peoples’ lives.
show you dozens of ways to add massive value and differentiate your accounting firm from all the other ordinary firms.
Graphs and charts
Tax planning review Ratio analysis
Diagnostic review report Six key growth drivers review
Personal balance sheet Benchmarking report
Remuneration planning Breakeven analysis
Report on their financial systems Pricing analysis 1 7 3 9 5 11 2 8 4 10 6
Unlimited access to your team… this means that you can call on us at any time knowing that you will never be charged for our time or advice
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Making doing business with you fun 13