the most crucial aspect of scope is for everyone to know precisely what falls within the lines of the scoped services and what does not.
by jody padar
radical pricing – by the radical cpa
there’s a time to increase scope and a time to let it slide. let’s explore these two options.
it’s professional responsibility to inform a client when a request is out of scope. in this instance, you have two options: either make it a separate engagement or include it in the existing service package. it’s important to have everyone on the same page about what is within scope and what falls outside of it.
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it would be best if you always built into your pricing agreements a 20 percent buffer to protect you against pricing mistakes. this doesn’t mean you should do work outside the scope for free, but if a client asks for a service not included, you could decide to let it go if the amount is immaterial.
however, if the value is greater or you need to investigate further, be clear with your team and the client.
this buffer keeps you from running to the client every week with a new, unforeseen service fee and allows you to be the hero who can offer up a few services here and there at no additional cost.
your contract should also include a clause allowing you to re-evaluate the scope of work. this clause states that the first 90 days of the contract are subject to review, and you would re-evaluate the scope and fees.
something always pops up no matter how thoroughly you scope on the front end. sometimes, it can be a bit of a land mine. you do not want to lose your shirt over this unanticipated event, so take the time to re-evaluate. most firms rarely, if ever, re-evaluate scope, but the option creates a sense of equity for both sides. if the client’s business experiences an issue within those 90 days, they, too, can ask to re-evaluate their services.
the most important aspect of scope is for everyone to know precisely what falls within the lines of the scoped services and what does not. teamwide clarity around scoping makes it easy to identify if a client is pushing boundaries. some clients will do this, but your team should be well equipped to have the out-of-scope conversation.
staff needs to follow through with this conversation. they can then bring the scenario to a manager or partner to make the final call on rescoping or letting it go. regardless, the client will be told they either have to pay for it or that this time you are throwing it in, but, traditionally, it’s worth $250. you want this transparency so everyone knows the terms surrounding a service.
in old-school firms, the work requested by a client would likely just get done. the hours would either be allocated to another file or overlooked, and the client would get what they asked for at no cost. the other option is to do the work after the client makes the request and then bill for it. in this case, the client was probably never told the service was out of scope and felt nickel-and-dimed. adherence to scope protects all parties from feeling abused, but transparency and communication are key.
a lot of partners voice a fear of value pricing, thinking their teams will give away services willy-nilly. they fail to realize that the value- and fixed-price model does a much better job of enforcing and communicating scope internally and externally. in this new model, everyone knows evaluating scope and services is integral to the process. in traditional firms, when a client makes a request, the team member usually makes a call without ever consulting the client. in the fixed-price model, the team member pauses, steps back, evaluates the request and sends it up the food chain to a manager or partner. meanwhile, the team member talks to the client and lets them know the request is out of scope but will get done. it just may involve additional fees.