Pricing: Food for Thought

Source: Solutions for CPA Firm Leaders

The following blog post by Rita Keller is reproduced in its entirety with permission.

Xcentric has a great post (article) by Shannon Vincent on its blog. It is about “pricing truths as it relates to the accounting industry.” Here are some highlights — but you should read the full article.

Most accountants are pricing apologists. Many actually feel guilt about what they charge clients.

Price discrimination is a reality. Not all clients are willing to pay the same price for the same service. Factors matter — if it is a last-minute, urgent need for service, do you charge more?

Pricing is a function of self-esteem. You take care of clients and you think your clients will take care of you (eventually pay you). Not always true.

Why do accounting firms work for free? Lawyers and doctors don't work for free. It serves no one to undercharge.

Vincent has some great suggestions on reducing the amount of time you work for free and even a script on how to deal with friends/family for whom you can no longer do FREE work.

For the original blog entry, read Most Accountants are Pricing Apologists.

From Solutions for CPA Firm Leaders, the blog of Rita Keller, president of Keller Advisors, LLC, [email protected], October 27, 2010. Visit http://ritakeller.com/blog/.