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Better Pricing Methodologies For CPA Firms
We’re back today with Jonathan Stark. In case you missed it we did a recording with Jonathan a couple of weeks ago. It’s episode 106 – Better Pricing Strategies for Accountants. There was so much more to talk about that I invited him to come back on to continue the conversation about pricing.
One of the problems that CPAs run into in their practices is that they tend to fall back on two methodologies for pricing: billing by the hour, and flat rate, which tends to be a cost-plus version of billing by the hour.
These two methodologies limit them in terms of how they price in their firm. Coupled with the problem that hourly billing is problematic in that the client doesn’t have a price until after the work is done. And if the bill exceeds the value to the client, that’s a big problem.
So what we want to talk about today are different pricing methodologies for CPAs.
Before we started recording, I laid out a couple of options, namely retainer, value-based, contingency and subscription. Jonathan walks us through what those different pricing methodologies look like, what’s good to use and what kind of circumstances and why you don’t want to use them in certain circumstances and what the risks are.
PDF: Different Pricing Methodologies for CPAs
Are you interested in the PDF related to this episode? Simply email me with an obvious subject title like, “Please email me the PDF related to episode XXX” and I will happily email it to you.
Connect with Jonathan:
Website: https://jonathanstark.com/
Episodes mentioned:
081 Time to Rethink Your Pricing Strategy? with Ron Baker, Founder of VeraSage Institute
https://shethinksbigcoaching.com/081
104 How Much Would a CPA Pay for a Kid’s Bike?
https://shethinksbigcoaching.com/104
106 Better Pricing Strategies for Accountants: Stop Billing by the Hour
https://shethinksbigcoaching.com/106
Geraldine Carter on the Ditching Hourly Podcast – The Forensic Bounty Hunter
https://podcast.ditchinghourly.com/episodes/coaching-call-with-geraldine-carter
Book recommendations:
How To Measure Anything: Finding The Value of Intangibles in Business, by Douglas Hubbard
https://hubbardresearch.com/publications/how-to-measure-anything-book/
Implementing Value Pricing: A Radical Business Model for Professional Firms, by Ron Baker
https://www.amazon.com/Implementing-Value-Pricing-Business-Professional/dp/0470584610
Hourly Billing Is Nuts by Jonathan Stark
https://jonathanstark.com/hbin
Upcoming training:
10 PHRASES TO SCRUB FROM YOUR WEBSITE AND WHAT TO REPLACE IT WITH
Thursday, November 19th, 12pm ET
Schedule time with Geraldine:
https://calendly.com/geraldinecarter/15min
