How Much Are Your Accounting Services Worth?

This is a busy time of year for us. As accountants, we plod along much of the year in preparation for tax season which can hit us like a ton of bricks if we’re not careful. Of course this year, with the tax deadline extended until July, our high-pressure time will be diffused a bit over several months. Nonetheless, we get accustomed to the natural ebb and flow of the business. In fact, after many years of doing the same work, it gets easier and we get faster and more efficient at it. With a job that feels different from one season to the next, how you set consistent year around pricing?

Often, business owners struggle with pricing. How do you determine a price structure that seems fair to you and to your clients? If you set your price low you’ll attract more clients. If you set your price high, you may price yourself out of the local market. Where do you even begin?

I heard someone say recently that the price you pay for a service has baked into it the years of training and experience that the professional has. This is called value-based pricing. By definition, value-based pricing takes into account not only the cost of the product or service but the value that it has to the consumer. For example, while it may only take me an hour of my time to fix an IRS issue for a client, the value to them of having their issue resolved is close to priceless.

When you price your services too low you’re undervaluing your time (which we can all agree is our greatest commodity) and sending a subtle message to your clients about how much they should value you too. Let’s circle back to the examples in paragraph 2. Whether you are new in business and need to set your prices for the first time, or you’ve been at this for a long time and need to raise your prices accordingly, this process can feel really uncomfortable.

For you beginners, the fear of pricing too high and not attracting enough customers is real. We’ve all been there. However, I urge you to stay the course. It is far better to have a handful of loyal clients who are willing to pay you what you’re worth that it is to have dozens of fairweather clients who want something for nothing.

And you, my friends who have been in your business for too long without raising prices. It’s time. Your clients who have experienced the benefit of your services will gladly pay what you’re really worth. And those who aren’t willing, aren’t worth it. When you charge more, you can afford to waste less time doing busy work to make an extra buck here or there.

When it comes down to it, in order to used value-based pricing you have to know your own value. If you can’t clearly state the value you’re bringing to your customers then they won’t know it either. For assistance in setting up your own business, or for information about our mentorship opportunities, contact us today.