{"id":53202,"date":"2017-11-08t18:28:39","date_gmt":"2017-11-08t23:28:39","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=53202"},"modified":"2024-08-14t09:30:27","modified_gmt":"2024-08-14t13:30:27","slug":"get-partners-accept-new-pricing-philosophy","status":"publish","type":"post","link":"\/\/www.g005e.com\/2017\/11\/08\/get-partners-accept-new-pricing-philosophy\/","title":{"rendered":"how to get partners to accept a new pricing philosophy"},"content":{"rendered":"

\"businessman<\/a>5 common objections … and 5 reasons to change. bonus: an 11-point fee audit.
\n<\/strong><\/p>\n

by august j. aquila<\/i>
\nprice it right<\/i><\/a><\/p>\n

before you announce 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

more:<\/b> preparing to change pricing philosophy<\/a> | 11 alternative pricing methods<\/a> | applying cobb\u2019s value curve to your firm<\/a> | the four types of competition<\/a> | marketing and the 5 p\u2019s<\/a> | why choose a marketplace orientation?<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

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  1. the firm’s willingness to make some changes<\/li>\n
  2. an analysis of existing engagements and the economic impact that a different pricing strategy will have on the firm<\/li>\n
  3. a review of how the firm is currently delivering and producing its services<\/li>\n
  4. the firm\u2019s overall relationships and communication style with its clients<\/li>\n<\/ol>\n


    \nhere are some of the impediments to implementing alternative pricing methods. i’m sure that you will be able to add several more to this list.<\/p>\n

    it seems that the reasons not to change almost always outnumber the reasons to change. 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 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

      \n
    1. we have been doing it this way for so many years, why would we want to do it differently now?<\/strong> in short, this is pure inertia on the part of the partners. my normal response to this barrier is: “can you imagine preparing tax returns today the same way you did them 10 or 20 years ago?” everyone, of course, answers, “well no.” and, some even say, “but this is different.” is it really different?<\/li>\n
    2. i know what i’m doing now; i won’t know what might happen if i change my pricing methods.<\/strong> yes, you do know what you are doing now, but methods become obsolete over time. unfortunately, the only way many of us will change is when the pain of not changing becomes greater than the pain of changing. but we do not necessarily have to wait until we get to that point. change is frightening for all of us, including me. let’s accept that as a fact. if we don’t change constantly we will only be left behind, professionally and economically.<\/li>\n
    3. i am a dominant billing partner in the firm who has been justifying my high compensation based on billable hours; what do i do now?<\/strong> such an individual may fight tooth and nail not to make any changes. changes would definitely weaken this individual’s power base within the firm.<\/li>\n<\/ol>\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’s shoes, how would you feel?<\/p>\n

        \n
      1. why do you want to change what has gotten us to where we are today?<\/strong> the answer is that there are countless companies and products that failed to change with the times and are no longer in existence. older partners will fight younger partners. it may appear to be the “young turks against the old guard.\u201d<\/li>\n
      2. how will we change our compensation system if we make these changes?<\/strong> since most firms heavily compensate partners based on billable hours, what will be the new measurement? there already exists a trend in the profession to get away from using billable hours as a key measurement and move toward fees collected. too many partners have been paid solely on their billable hours and not on what they actually collected. forget billable hours and put your emphasis on actual dollars that you bring into the firm.<\/li>\n<\/ol>\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