here’s what you’re looking for: jody padar

pricing, fees & billing rates

find clients with the right fit

businesswoman smiling at two clients, man and woman

not everyone is ready for a new you.

by jody padar
radical pricing – by the radical cpa

a friend who owned a business services firm in the marketing industry once told me he would rather face waterboarding than resign a hard-won client. however, even he cast a big one aside after his key employee returned from a client meeting in tears. some things just can’t be tolerated. your job is to determine where the line should be and to make the decision before a bad client has the chance to negatively affect your company.

more: seven steps to determining your price | using change orders with scope | who needs to understand scope? | how to scope before you price | when to increase scope and when to let it go | determining a price … and when to change it | seventeen questions to ask when scoping | which clients should you scope? | perfecting the client needs assessment | four steps to scoping for alignment … and the #1 rule to remember | getting aligned on scope helps your team and your clients | create more meaningful kpis | here’s how profit sharing improves your firm
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

a client’s fit with your firm is every bit as important as their behavior and payment practices. after you adopt a new client-centric, value-based business model, some clients won’t fit in. some will want to stick with the transactional model of the billable hour. they may not be comfortable with your new direction. some clients may not even want to pay for your smallest service bundle despite the enhanced service levels it includes.
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pricing, fees & billing rates

seven steps to determining your price

businesswoman using calculator while reviewing something on laptop screen

plus four things to learn about each prospective client.

by jody padar
radical pricing – by the radical cpa

how much would you pay for a bottle of water in the checkout line of a grocery store? maybe $2 or $3, right? you know it costs more per unit than buying a case of water, but at that moment it’s worth it even though it’s the same bottle of water. now, let’s assume you just made the long trek back to your hotel room in las vegas. they have the same bottle of water sitting there for $10. you’re thirsty and don’t want to walk to find a store, so you pay $10 for that bottle conveniently located in your room. the water isn’t different, but the value at that moment in time is subjective.

more: using change orders with scope | who needs to understand scope? | determining a price … and when to change it | perfecting the client needs assessment | create more meaningful kpis | five reasons to ditch timesheets for good | six steps to creating a standardized practice | value pricing requires defining your clients | stop selling time | three critical factors drive the value pricing trend | stop looking for talent that does not exist
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

when we think about price, we really need to think about worth. what actually are you bringing to the table? lots of training. many years of experience. vision into similar businesses. it took you years to get here; don’t sell an answer to a question the client asks for the three minutes it took to answer.
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pricing, fees & billing rates

using change orders with scope

how is a change order like taking your car to a mechanic? read on.

by jody padar
radical pricing – by the radical cpa

change orders are the result of a well-scoped process. they occur when a client adds a service not included in their original engagement or when a manager or partner requests a service be scoped and priced separately. the client decides whether or not to proceed with the change.

 

more jody padar

the radical cpa

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

the process of a change order is similar to taking your car to the mechanic for an oil change. during a diagnostic, they find you need a tire alignment as well. the alignment is not included in the services you bought, but you’re curious to know how much it would cost. depending on the price, you’ll add it to the original quote, or you won’t.

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pricing, fees & billing rates

who needs to understand scope?

don’t make the mistake of allowing a partner to scope the engagement alone.

by jody padar
radical pricing – by the radical cpa

partners, managers and accounting professionals must all understand scope to deliver the right amount of work for the engagement.

more jody padar |the radical cpa

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

everyone needs to be aligned. everyone needs to know what the customer ordered, how to deliver it and where the work ends.

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pricing, fees & billing rates

when to walk away from a prospective customer

enabling your team to fire clients supports the ethos that your team is your most valuable asset.

by jody padar
radical pricing – by the radical cpa

there are few ways to sink an accounting firm faster than winning bad clients. they will rob your profitability, steal your sanity and cause havoc among your staff and other client relationships.

more jody padar

the radical cpa

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

ask yourself these questions and be prepared to walk away if you don’t get the right answers:

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pricing, fees & billing rates

how to scope before you price

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.

 

more jody padar

more pricing

the radical cpa

from success to significance: the radical cpa guide

radical pricing

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

with that said, here’s how your scoping process helps you determine the ultimate price:

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pricing, fees & billing rates

when to increase scope and when to let it go

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.

more  jody padar | pricing | the radical cpa | from success to significance: the radical cpa guide | radical pricing

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.

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pricing, fees & billing rates

determining a price … and when to change it

consider at least five issues when deciding how much to charge clients for your services.

by jody padar
radical pricing – by the radical cpa

what is the lowest monthly fee paid by any of your clients? you probably don’t want to bring on any new clients at a lower fee, so use this as your new business baseline. no one enters your firm without paying this baseline monthly service fee.

more jody padar

the radical cpa

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

however, the question remains whether the client will be billed on a fixed-price or value-priced basis. here are five issues to consider as you make this decision:

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pricing, fees & billing rates

seventeen questions to ask when scoping

asking the right questions proves critical in selecting the right-fit clients.

by jody padar
radical pricing – by the radical cpa

using subjective questions helps you assess what the prospective client considers valuable. this means understanding which services and solutions they see as having the biggest impact on their financial health. it also gives you insight into where they are hurting most in their business.

more: which clients should you scope? | perfecting the client needs assessment | create more meaningful kpis | five reasons to ditch timesheets for good | six steps to creating a standardized practice | value pricing requires defining your clients | stop selling time | three critical factors drive the value pricing trend | stop looking for talent that does not exist
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

this process is time-consuming because it sets the stage for your relationship moving forward. take your time and collect all the data, documentation and subjective input so you can gain a holistic view of the customer’s current situation. let’s take a look at some of the questions you can ask and why they are important.

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pricing, fees & billing rates

which clients should you scope?

the process should align you with the client on the value and which services will be delivered.

by jody padar
radical pricing – by the radical cpa

scoping is a time commitment, so know that the client is worth the commitment and they have the revenue to back it. start by setting a minimum price point you will charge for the assessment process. if the client falls below your threshold price point, it doesn’t mean you’re not going to scope them, it just means the process will be less complex and can probably be done within an hour.

more: perfecting the client needs assessment | four steps to scoping for alignment … and the #1 rule to remember | here’s how profit sharing improves your firm | productize services for consistent client value | four ways automation pushes the paradigm shift | how value pricing impacts your employees | why pricing is so disruptive | accounting disruptors are heading your way … with deep pockets | advisory work must be priced by value, not hours
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

for smaller clients, it helps the process if they arrive at the assessment with all the necessary information. you can look at their quickbooks data and tax returns to get a strong sense of what they need and how long it will take to deliver. scoping a small, straightforward client will become second nature with time. but be careful about being too casual when scoping smaller clients. if you miscalculate, you are still opening your firm up to risk.

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pricing, fees & billing rates

perfecting the client needs assessment

standardization will make you more efficient, effective and profitable.

by jody padar
radical pricing – by the radical cpa

a client assessment is an onsite or virtual session where you observe the client’s accounting system on which you’ll be working. this is your opportunity to see how they run their business: their software, their processes and who does what. this is when tasks and responsibilities are clarified and assigned. both the client and your firm need to understand their responsibilities in this new partnership.

more: four steps to scoping for alignment … and the #1 rule to remember | getting aligned on scope helps your team and your clients | create more meaningful kpis | here’s how profit sharing improves your firm | five areas to ground new metrics other than time | five reasons to ditch timesheets for good | productize services for consistent client value | digitize clients for standardization | six steps to creating a standardized practice | four ways automation pushes the paradigm shift | are you the key signal caller for your clients?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

this assessment also allows you to fully understand the client’s service needs. it is a real-world assessment of services, budget and the work required to provide deliverables. it will also allow you to understand what it will take to onboard them. again, this assessment goes both ways. it’s worth assuming you have competition, so take advantage of this time to impress the client with some consultative advice demonstrating the value you bring to the table – this is especially true if you are charging for the assessment.

one of the key benefits is the ability to limit your risk and as you:

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pricing, fees & billing rates

four steps to scoping for alignment … and the #1 rule to remember

only price for that which you can see. 

by jody padar
radical pricing – by the radical cpa

how often have you heard the old saying about having two ears and one mouth because listening is twice as important as talking? hopefully, often, because it is as true as anything i’ve ever heard. scoping is all about listening, so when you make a presentation, you’ll know what you’re talking about, and the client will know you know.

more: getting aligned on scope helps your team and your clients | create more meaningful kpis | here’s how profit sharing improves your firm | five areas to ground new metrics other than time | five reasons to ditch timesheets for good | productize services for consistent client value | digitize clients for standardization | six steps to creating a standardized practice | value pricing requires defining your clients | stop selling time | three critical factors drive the value pricing trend | stop looking for talent that does not exist
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

here are four basic steps you can follow to make sure you and the client are in alignment when the time comes to start a new project or present to a potential new client:

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pricing, fees & billing rates

getting aligned on scope helps your team and your clients

master the map to success.

by jody padar
radical pricing – by the radical cpa

there are two basic ways to drive from door county, wisconsin, to new orleans to attend mardi gras in february. the first is to chart a course using a map or gps app. it will tell you the route to take, where to stop along the way and how long it will take to make the drive. the second way is to start the car, back out of the driveway and head south, hoping you’ll bump into new orleans along the way.

more: create more meaningful kpis | here’s how profit sharing improves your firm | productize services for consistent client value | four ways automation pushes the paradigm shift | how value pricing impacts your employees | why pricing is so disruptive | accounting disruptors are heading your way … with deep pockets | advisory work must be priced by value, not hours
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

which do you think gives you the better opportunity to arrive in new orleans in time for the festivities?

scope is a lot like creating a project map showing what you want to accomplish, who’s going to do what, how you’re going to do it, what you’ll need along the way and how long it will take to get there. it includes all the specific details of what you’ll deliver to the client, including, for example, tax returns, quarterly planning, bookkeeping and cash flow management.

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