Talk about value pricing this tax season
February 04, 2016

Accountants tend to see a higher influx of clients between February and April, meaning they'll have to deal with a lot more work. This is the perfect opportunity to discuss the value of their services with clients. Accountants should take time to talk with their customers about switching from an hourly fee to value pricing, a method ensuring clients get the quality they pay for.

Benefits of value pricing
Value pricing, Accounting Today said, is first and foremost a discussion about how much clients value the work accountants provide. This is not to say such pricing methods are a "gotcha" moment - rather, it's a chance for customers to gain an understanding of the service they're getting. It also allows them to stay within budget, creating strict price and production rules regardless of how long it takes the accountant to complete the job. This way, if one encounters unexpected complications and has to work longer, the client isn't billed for the extra time. 

"Once you move over to [value pricing], billable hours become superfluous and can't compare," Ron Baker, founder of think tank VeraSage Institute, said to the website. "You're working differently, more collaboratively, and sharing knowledge ... It becomes an obsession. And I can't think of a better thing to be obsessed with than creating value for a client."

Value trumps all
Value, according to CanadaOne, compels clients more than any other feature. They don't care how long a particular task took or how difficult it was to complete. Their only concern is how the service benefits them. Value pricing makes these advantages clear and understandable.

Such pricing methods also attract clients willing to pay higher prices for better services. They're less concerned with cost and more concerned with quality, and they're okay with being charged more as long as they get the best. Businesses that price based on value also get better brand recognition, CanadaOne said, as satisfied clients spread the word.

To devise a price for their work, accountants need to survey their clients first. They need to know what basics customers expect, how much they're willing to pay for them, and where else they'd go to get a similar service. Ultimately, accountants must balance the work they provide with the expectations clients hold when devising a value-based pricing structure.

Learn how Sage helps accountants get the most out of their business while providing the best for customers. 

Nexus: G-WEBCD2