what econ 101 and inelastic demand curves teach us about billing rates.
by frank stitely, cpa, cva
before we turn our hymnal to page 10 and sing that old favorite “we’re not selling time. we’re selling knowledge,” let’s consider if clients are buying what we’re selling.
when you go to the grocery store, do you ask, “i’d like to buy the cow milking knowledge of a farmer?” of course not. you ask for a gallon of milk. customers buy outcomes, not inputs. read more →
how good communication habits can head off problems.
by ed mendlowitz
implementing fee increases
professional fees are typically billed based on time. yet, clients want outcomes and place a value on results, which doesn’t necessarily relate to time spent.
ingrained habits are hard to break away from. for ages, many professionals quoted jobs by providing hourly rates and possibly a range of expected hours. some projects are open-ended in the sense that no one knows where it will take them and what will be uncovered once work commences. this might include a forensic investigation, litigation where the discovery process becomes acrimonious, unraveling transactions in a complicated bankruptcy, a first-time audit of a multinational corporation or a tax audit for a reasonably sized business.
however, for most work, there is an understanding of what will need to be done and the approximate value to the client. this could include an annual audit, tax return, setting up a cost accounting or internal control system or a transfer price study. read more →
by sandi smith leyva, cpa
accountant’s accelerator
i hear more accountants grumbling every day about how price-sensitive their prospects and clients have gotten. and they are right, to a degree. the economy has caused even the rich to count their pennies, and the percentage of people who look at a price tag before they buy has increased over the last five years.
yet studies show that roughly 54% of buyers are not price-sensitive, and i would be willing to bet even more are selectively price-impervious depending on what they buy: women’s shoes, men’s cars, personal services, jewelry, vacations, cosmetics, and hair, to name a few exceptions.
so why are so many accounting clients and prospects price-sensitive? read more →
ed mendlowitz, cpa, abv, pfs author of “implementing fee increases“ question: i helped a client get a bank loan, negotiated the rate and fees with the bank and had a tight covenant loosened. i prepared a personal financial statement, prepared … continued
…as accounting firms redefine value. by bruce w. marcus professional services marketing 3.0 today’s modern accounting firm — and there are more of them than we think, and fewer of them than we’d like to think – is still evolving. … continued
the techniques for telling clients you’re raising your rates.
by ed mendlowitz
author of “implementing fee increases“
any time is a good time is a good time to review your fees and consider increasing them. but the beginning of the year or a new season is especially good.
keep in mind that whatever the method you choose, you are making a business decision that should be handled with care and finesse and can affect the relationship with the client that you have been cultivating.
also, losing the client is always a threat, so you must be prepared for this. further, not raising the fee also presents a threat to your long term success and business viability, and this must also be considered.
here are seven methods of increasing fees: read more →
time tracking and the v.b.t. (value billing taliban)
by frank stitely, cpa
stitely and karstetter
i have long been a true believer in value billing. five times a day i kneel towards the east and pray, “i am not selling time. i am selling expertise.” however, i just can’t follow with the end of the prayer which goes, “time trackers are evil. we must stone them.” time tracking is essential to value billing, done profitably.
more unconventional wisdom from frank stitely, cpa: who’s missing in action from your workflow processing system? | how to make an extra $72,000 by working smarter
let’s invite some people to leave our discussion. if you are a coach, consultant, or some other type of cpa advisor, who has never owned an equity position in a cpa firm, please exit stage left. yes, i know you have decades of experience observing cpa firms. i have decades of experience watching professional football. that doesn’t qualify me to coach the redskins. veteran poker players know that playing someone else’s hand is easier than playing your own when big money is on the table. if you’re a cpa firm employee, please stay. some day you’ll need this information. but sit there silently until we are done.
there are three reasons time tracking is important: read more →
[click to play] better, faster transactions and decisions…
“30 minutes or it’s free;” “absolutely, positively overnight;” “no surprise billing. ever!”
by edi osborne
mentor plus
what do these three tag lines have in common? predictability.
dominoes and fed ex built their entire business model on making (and keeping) an uncomplicated predictability promise to the customer. dominoes and fed ex looked at their marketplace and asked one simple question, “what is your number-one frustration in dealing with pizza and package delivery?” those frustrations were dissected and turned into game-changing promises that rocked everyone else in their industry.
in the same way, accounting firms that adopt a “no surprise billing” promise could be game changers in their marketplace as well.
more from edi osborne for 卡塔尔世界杯常规比赛时间 pro members (go pro here):
game changing innovations are not limited to big companies. in fact, even the smallest of accounting firms are in a position to be game changers.
billing rates at cpa firms remain high, evidence that the marketplace continues to be strong for cpa firm services. despite the economic change and uncertainty that has affected u.s. businesses this year, the value of cpa cpa firms’ services is … continued