Just Do It: Making the Switch to Value Pricing

Source: VeraSage Institute

In this blog entry, Dan Morris challenges CPA firms to finally let go of hourly billing and embrace value pricing. Morris suggests that many firms appreciate all that value pricing has to offer them and their clients. But he believes firms are stuck with hourly billing because it's simple and because switching to a value-based system seems too complicated.

His solution? Switch anyway, and keep the transition very simple. Morris encourages firms simply to make a decision to stop counting hours, and to charge clients in the upcoming year what they were charged in the current year for the same services. He even suggests adding a 10 percent fee increase if you're not comfortable using the current year's fees.

Although this initial decision and approach will not be all that is needed to truly establish value pricing in your firm, Morris believes that just getting past the decision to make value pricing happen in your firm will set you and your team on the right path. You may need help to take additional steps down that path, but at least you will have begun the journey.

For the complete blog entry, read "The Paradox of Value Pricing."

From VeraSage Institute, September 25, 2012, http://www.verasage.com/index.php/community.