{"id":103929,"date":"2022-10-28t12:00:03","date_gmt":"2022-10-28t16:00:03","guid":{"rendered":"\/\/www.g005e.com\/?p=103929"},"modified":"2024-08-14t09:30:08","modified_gmt":"2024-08-14t13:30:08","slug":"getting-partners-to-accept-a-new-pricing-philosophy","status":"publish","type":"post","link":"\/\/www.g005e.com\/2022\/10\/28\/getting-partners-to-accept-a-new-pricing-philosophy\/","title":{"rendered":"getting partners to accept a new pricing philosophy"},"content":{"rendered":"
<\/a>they have to be on board before clients.<\/strong><\/p>\n by august j. aquila<\/i><\/a><\/p>\n once you have decided to adopt an alternative pricing philosophy, what do you do next? changing your firm\u2019s pricing philosophy is really a three-step process.<\/p>\n more: <\/b>when to use 11 alternative pricing methods<\/a> | 12 subjective factors for pricing your next engagement<\/a> | how utility and value affect pricing<\/a> | the four phases of service life<\/a> | marketing orientation is what firms need<\/a> first, you need to consider several factors before suggesting a change. second, you need to get your partners to agree that it is a good idea, and third, you need to educate your clients so that they accept and understand the new approach. the steps are not easy, but they are possible. and, remember, change does not occur overnight.<\/p>\n any change will, of course, be met with resistance. you can be sure of that! so, before you start making drastic changes to your pricing strategies, you will need to take into consideration the following key factors:<\/p>\n you will need to spend a lot of time with your people to make sure that the transition goes smoothly. extra hand-holding and open communication are critical to the success of this venture.<\/p>\n remember that effective change needs to be evolutionary and not revolutionary. alternative pricing strategies will evolve over time as both sides gain a better understanding of these different methods. ultimately, it is the marketplace that will dictate the changes that we will have to make. that does not mean that you need to respond in a reactive mode. rather, this would be a great opportunity to be proactive. to begin the process of change it is important for you to become convinced that there are distinct advantages to using some of the alternative pricing methods.<\/p>\n before you announce your new pricing policies to your clients, it is critical that you and all the partners in your firm embrace the new pricing philosophy. the entire process begins with the following:<\/p>\n here are some of the impediments to implementing alternative pricing methods. i\u2019m sure that you will be able to add several more to this list. it seems that the reasons not to change almost always outnumber the reasons to change.<\/p>\n that is quite easy to explain. change is painful. it interrupts the daily routine, the old and comfortable work habits that partners and staff have developed. change is also stressful. it creates uncertainty. we are not sure whether the change will be for the better, especially if we are one of the pioneers of the change. once you start making changes in the firm, it becomes difficult, if not impossible, to keep making the same excuses for excessive write-downs, extended accounts receivable and so on.<\/p>\n the major concerns i have heard whenever i have recommended making significant changes follow.<\/p>\n in addition, not only would the political power of this partner be threatened, but also his personal security. we all know partners who claim to have more billable time than anyone else in the firm, in fact, some even claim to have more billable time than the entire firm! if you were in that partner\u2019s shoes, how would you feel?<\/p>\n the following are just a few ideas on how to change your compensation system to get your partners to accept the new billing paradigm:<\/p>\n there will be other concerns raised among the partners in your firm. to help overcome these concerns, you might want to use the following points to bring your partners up to your readiness level. some basic reasons to make this change, or at least to move in the direction of adopting alternative pricing methods, are as follows:<\/p>\n to help the partners of your firm see the advantages of making alternative pricing a reality in your firm, ask them to complete the client fee audit below, which will help you determine whether or not a different billing method on a specific engagement would have been more profitable. if you can demonstrate in dollars and cents what could happen, you are more than 50 percent of the way toward convincing them to change.<\/p>\n note: if more than one professional serviced the client on the engagement, ask each one to write out the answer to these questions and then compare them. you will be surprised to read the different perceptions of each service provider.<\/p>\n client fee audit<\/strong> 2. what could i have done to better serve the client?<\/p>\n 3. was there a way to better manage this engagement?<\/p>\n 4. was there someone else in the firm who could have handled this engagement more profitably?\u00a0<\/strong><\/p>\n 5. if i had the opportunity to do this engagement again, would i use the same pricing method? if you answer no, which method would you use?<\/p>\n 6. was i able to obtain any new engagements from this client? in other words to what extent did i cross-sell other services?\u00a0<\/strong><\/p>\n 7. are there any procedures or systems that were developed for this engagement that can be used in the future? if yes, describe:\u00a0<\/strong><\/p>\n 8. did we employ a technology or process that could be used again? yes__ no__ if yes, please describe:\u00a0<\/strong><\/p>\n 9. did i ask the client for a testimonial letter that highlights the value we provided? yes__ no__ if no, why not?\u00a0<\/strong><\/p>\n 10. the fee billed to client under existing method was: $<\/u>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/u><\/p>\n 11. fee billed to client under alternative billing method would be: $<\/u>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/u><\/p>\n","protected":false},"excerpt":{"rendered":"
\nexclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n
\n\u201cpricing is actually pretty simple … customers will not pay literally a penny more than the true value of the product.\u201d \u2013 ron johnson<\/p><\/blockquote>\n\n
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\n1. what value did my efforts bring to the client on this engagement? specifically identify the value you brought to the client.<\/p>\n