value + pricing = value pricing

//www.g005e.com/2020/08/26/value-pricing-value-pricing/
some 64% of cpas say one of the chief benefits of value pricing is “transparency.” (aicpa)

automation is a key part of the process.

by 卡塔尔世界杯常规比赛时间

matching pricing (what an accounting firm figures it can charge) with value (what a client things a service is worth) is always a challenge. a firm may think its capability in compliance is worth a lot, but if the client has nothing to comply with, it puts no value on compliance services.

more: opportunities in common and uncommon servicescloudy forecasts call for rainmaking
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

so the question is: what does a given client or potential client value?

a new aicpa cpa.com survey finds a crucial link between the size of the client and the value it perceives in various services.

  • among large clients, 24 percent are especially concerned with maintaining quality and efficiencies, while only half as many small clients express similar concerns. technology is important to 21 percent of the biggies but only 9 percent of smaller companies.
  • among small clients, 22 percent are challenged by the time needed to focus on accounting and financial matters, while only 3 percent of large clients share that concern. cash flow and overhead are of concern to 20 percent of small clients but only 12 percent of large ones.
  • midsize clients have other concerns. for 23 percent, compliance is the top concern. for 22 percent, it’s attracting and retaining top talent. just as many are primarily concerned with planning for growth and expansion.

offering the wrong services does not result in the right pricing. right pricing matches the perceived value of the service.

so: focusing on perception can lead to better pricing.

the survey asks cpa clients what they would like to change about their cpa firms. three surprising points were most common:

  • 28 percent want more communication touchpoints.
  • 27 percent want more familiarity with their business or industry.
  • 19 percent want better customer service.

the three are interlocked. no one of them is worth much without the others. the three together add up to perceived value, the foundation of value pricing.

perceived benefits of value pricing

the survey also asks accountants to identify the top benefits of adopting value pricing. three surprising points were most common:

  • 64 percent say “transparency between client and firm.”
  • 60 percent say “demonstrating the value of firm expertise.”
  • 59 percent say “lack of billing surprises.”

all three points focus on the client experience. the firm experience bottom-line profit does not make the top three. in fact, it ranks last at 42 percent.

clients aren’t always interested in adopting value pricing. only 10 percent express interest in alternate pricing methods. eighty percent have never switched billing models, which would include the adoption of bundled services.

automation is the key

so how do firms convince clients to take that big and beneficial step into value pricing?

it turns out that automation is key.

firms proficient in technology bring out the value of value pricing by helping clients assign manual processes to technology solutions. businesses recognize how technology can offload repetitive lower-value administrative tasks from their daily grind.

the impact is palpable when clients recognize the benefit of automation, which may not be inevitable. billing rises only 8 percent of the time when clients don’t directly see the value of time saved by automated processes. when clients are aware of the added value, billing rises by 30 percent.

bottom line: perception + communication + automation = perceived value = value pricing = satisfied cpas and clients.