it’s a learning process that benefits both you and the client.
by jody padar
radical pricing – by the radical cpa
accurate pricing relies heavily on thorough scoping to measure the engagement, and good scoping defines the deliverables, sets the client’s expectations and calculates the labor it will take to get the job done.
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with that said, here’s how your scoping process helps you determine the ultimate price:
- know what you are getting into. a client assessment and scoping give you a thorough picture of who and what you are working with.
- you have the data; use it. you have access to client data. look into what they’ve paid for professional services in the past. look at their tax returns and financial statements. this will tell you everything you need to know about what they’ve paid and which services they’ve historically used.
- include insights. during the scoping process, identify client pain points and show them how you can relieve the pressure. demonstrate your expertise in their field, and let them know you understand what they’re experiencing. in this process, you build up their perceived value of you and your services.
- bill for diagnostics. if they are a big enough client, it is not out of the question to bill for the diagnostic. the client will not be shocked, and they’d probably be happy to pay you for your time and insight. you can provide them with a report at the end of the process with various insights stressing the client-centric nature of your services. this gives the client a sense they are paying for the report. clients concerned about your success and theirs will understand why you have to charge for time-intensive diagnostics.
in-depth scoping will uncover all the information needed to maximize benefits for both the firm and the client. this means:
- maintaining the firm’s client standards: can the client deliver the materials needed for your standardized processes? if the client is slow to deliver the materials needed for successful standardization, they will likely be slow. how will this affect your firm?
- identifying value: where does the client’s business suffer most, and where would they likely perceive the most value for your services? price those needs more aggressively because they are the most valuable.
- bringing the services they have historically outsourced under one roof: looking through their historical data, you will discover which services they have outsourced. if given the option, a client would likely want to have all their services under one roof, handled by a team invested in their financial health and longevity, especially if it’s delivered at a better price.