battling cas cost pushback

hitendra patil cas q-and-a logowhat is the prospect unable to do on their own?

by hitendra patil
client accounting services: the definitive success guide

q: how do you convince a potential client that through cas you are adding value above the cost?  i always hear “it costs too much” or “we’ve been getting by without the added cost.”

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a: interestingly, the roots of this question are hidden in the value pricing realm.

when clients buy services from accountants, if “more outputs and hence higher price” is the pitch, it may fly under the radar, and the clients may agree. many times, the common practice of differentiating your service packages through three different levels actually relays that perception of more outputs for more money.

but later, when clients get used to those additional outputs, invariably, the focus shifts to “what is the additional value we are getting from these outputs?” and that is when the pushback starts.

assuming that you have done proper discovery of the potential client’s needs and wants, you should ideally identify a few key important things that the prospect is currently unable to do or does not know. it could be some questions about key business decisions they cannot make because no one has provided them with the accounting insights to make such decisions.

the idea is to help the prospect recognize the (new/better) “outcomes” that the additional outputs can deliver to the prospect. in other words, before the client signs up, help the clients understand the better value your cas offering delivers. if the prospect does not sign up, it is evident that either you have not expressed the value clearly, or the prospect does not need/want that additional value (not a good fit).