When Should You Talk About Your Rates?
Source: CPA Trendlines
The following includes excerpts, reproduced with permission, of an article by Sandi Smith Leyva.
Most accountants spill the beans about their rates way too early in a conversation with a future client. So when should you talk rates?
The best answer is: Not until everything else has been agreed upon.
Focusing on the Outcome
When the conversation heads toward price, steer it back to outcomes, results, and the value you will bring to the client. One way to do this is to make a list of items that you will deliver to the client, such as:
- An accurate set of books,
- A reconciled bank statement,
- An aging report, with calls made to vendors with balances over 60 days old,
- Financial reports, including an income statement by location,
- A training class, in which five new tips are covered and a needed custom field is added and populated,
- Peace of mind that the client's books are caught up,
- Savings of eight hours a week – hours freed up for more important ventures.
Once the list is complete, ask your future client what the value of each item is.
From Price to Value
Are your rates lower than the value of the tasks that you will be doing? If so, then it's time to present your rates.
If your rates are higher than the perceived value, then you have a problem. The client does not value your services, your rates are too high, or the list is incomplete
There's no point in presenting rates until you and your client can get in alignment. And perhaps you need to walk away. The numbers will tell you what you need to do.
For the original article, read “The Right Time to Talk About Your Fee.”
From CPA Trendlines, October 7, 2013, http://cpatrendlines.com.